Karnataka’s BioEconomy Surges to $39 Billion, Driving Growth

Karnataka’s BioEconomy reached a remarkable value of $39.21 billion in 2025, marking a significant growth of 26.5 percent compared to 2023. This achievement confirms Karnataka’s status as a leader in India’s biotechnology sector, contributing over one-fifth of the national bioeconomy and accounting for more than 10 percent of the state’s gross state domestic product (GSDP). The data comes from the BioEconomy Report 2025, unveiled by Priyank Kharge, the state’s IT/BT minister, on Monday.

The years from 2023 to 2025 signify a pivotal shift for biotechnology in Karnataka, evolving from a science-led sector into a comprehensive, production-oriented bio-based economy. This transformation is anchored in research, entrepreneurship, and sustainability, as outlined in the report released by the Karnataka Innovation and Technology Society (KITS) and the Association of Biotechnology Led Enterprises (ABLE).

Key Segments Driving Growth

BioPharma remains the cornerstone of this growth, representing over 40 percent of the total value, approximately $16.44 billion. This segment is propelled by advancements in biologics, biosimilars, vaccines, and diagnostics. Meanwhile, bioindustrial biotechnology has emerged as the fastest-growing segment, accounting for about $11.46 billion or 29 percent of the total. This growth is driven by fermentation-based industries, biofuels, enzymes, and sustainable materials, indicating Karnataka’s transition toward a robust biomanufacturing economy.

BioServices is also on the rise, contributing to approximately 25.8 percent of the bioeconomy. This growth solidifies Karnataka’s position in global research services, digital health, and innovation-led outsourcing. The BioAgri sector plays a crucial role in promoting sustainable agriculture and input innovation.

As of the end of 2025, Karnataka is home to 1,451 biotechnology and life science startups, with 218 new startups established in just one year. Approximately 75 percent of these startups focus on life sciences and health technology. While Bengaluru is the hub, accounting for about 54 percent of the startups, emerging clusters in Mysuru, Belagavi, and Dakshina Kannada are gaining traction, each contributing unique strengths to the state’s bioeconomy.

Investment and Future Prospects

From January 2024 to October 2025, Karnataka attracted $1.14 billion in investments across 40 deals, covering areas such as BioPharma, MedTech, precision fermentation, digital health, and AgriBio. This influx of funding reflects the growing investor confidence in Karnataka’s biomanufacturing and scale-up capabilities.

Commenting on the report’s findings, Priyank Kharge emphasized the significance of the bioeconomy, stating, “With our BioEconomy crossing $39 billion and contributing over 10 percent to our GSDP, biotechnology is no longer confined to laboratories—it is now a central driver of economic growth, industrial innovation, and societal impact.”

The Karnataka government is actively supporting the establishment of an Innovation Park at C-CAMP, enhancing a Centre of Excellence for Health and MedTech, and strengthening platforms such as Elevate NXT. These initiatives aim to back deep-tech enterprises in sectors like biotechnology, genomics, AI-driven drug discovery, and climate biotech, which require patient capital and long-term support for scale-up.

The report highlights several key figures that underscore Karnataka’s growing bioeconomy: the estimated total value of $39.21 billion in 2025, an addition of $8.2 billion between 2023 and 2025, and the emergence of three innovation corridors—Mysuru, Belagavi, and Dakshina Kannada—establishing regional bio-clusters under the Beyond Bengaluru initiative. Additionally, the northern districts, particularly Raichur, remain the Agri-Biotechnology belt, making significant contributions to the state’s Bt cotton-based BioAgri economy.

Karnataka’s advancements in the bioeconomy not only reinforce its position as a leader in biotechnology but also set the stage for future innovations and economic growth.