India’s bioeconomy has witnessed remarkable growth, expanding sixteenfold from $10 billion in 2014 to $165.7 billion in 2024. It now accounts for 4.25% of the country’s GDP and is supported by over 10,000 start-ups. This growth signals a shift towards a greener, more resilient economic future amid climate vulnerabilities and global sustainability demands.
Bioeconomy Sector Composition
The industrial bioeconomy leads with 47% share, driven by biofuels and bioplastics. Pharmaceuticals follow at 35%, while research, IT, clinical trials, and bioinformatics are rapidly emerging. India is the world’s third-largest pharmaceutical producer by volume. The government’s ethanol blending policy has achieved 20% blending in petrol, boosting biofuel demand. The sector is expected to generate 35 million jobs by 2030.
Rural Growth and Consumption Patterns
Rural India’s consumer spending is growing faster than urban areas, reflecting rising purchasing power and changing consumption habits. However, rural regions lag in access to clean energy, water-saving irrigation, and sustainable livelihoods. The digital divide affects rural inclusion in tech-driven bioeconomy solutions like smart grids and carbon markets.
Regional Disparities in Bioeconomy Development
Five states — Maharashtra, Karnataka, Telangana, Gujarat, and Andhra Pradesh — produce over two-thirds of bioeconomy value. Eastern and northeastern states contribute less than 6%, despite rich agricultural and forest resources. States like Madhya Pradesh and Chhattisgarh have potential for tribal-led bioeconomy models. Uttar Pradesh’s sugarcane industry offers opportunities in ethanol and biomass power. Policy and infrastructure gaps limit growth in Bihar, Odisha, Jharkhand, and West Bengal.
Gender and Employment Gaps
Women hold only 11% of jobs in India’s rooftop solar sector despite its rapid expansion. Their representation is particularly low in operations, maintenance, construction, and commissioning roles. This reflects broader gender disparities in green job access and leadership, requiring targeted policies for inclusion and skill development.
Challenges and Trade-offs in Green Economy
India faces trade-offs balancing fossil fuel subsidies with renewable energy promotion. Industrial sectors like steel and cement emit greenhouse gases and require costly green technologies. Clean energy investments largely flow to advanced economies, limiting resources for India. Rapid green transitions risk impacting vulnerable rural workers and MSMEs dependent on traditional energy. Agriculture’s importance to rural livelihoods complicates shifts due to climate variability and income instability.
Landscape Approach to Sustainable Growth
A landscape-based model integrates land, water, biodiversity, energy, markets, and communities for holistic green economy development. This approach supports ecological functions and human wellbeing while respecting local realities. Leveraging Panchayati Raj Institutions and women-led bodies ensures participatory planning and monitoring. Promoting circularity, bioeconomy, gender mainstreaming, and green infrastructure can generate multiple social and environmental benefits.
Policy and Institutional Recommendations
Effective green economy growth requires cohesive regulatory frameworks, green budgeting, and fiscal incentives. Local governance and community-based organisations need greater involvement. Addressing waste management, decentralised renewable energy financing, and inter-departmental coordination is essential. Enhancing skills, gender inclusion, and R&D focus on bioeconomy will unlock new growth engines and climate resilience.
Questions for UPSC:
- Critically analyse the role of bioeconomy in achieving India’s sustainable development goals with suitable examples.
- Explain the regional disparities in India’s green economy growth and discuss policy measures to ensure inclusive development.
- What are the challenges of balancing fossil fuel subsidies with renewable energy promotion in India? How can a just transition be ensured for vulnerable communities?
- Underline the importance of landscape-based approaches in environmental governance and climate action. Discuss their potential benefits with examples.
