By 2025, Karnataka's bioeconomy will have grown to $39 billion: Report

Karnataka’s bioeconomy expanded to $39 billion in 2025, accounting for nearly one-fifth of India’s total bioeconomy, according to the Karnataka Bioeconomy Report 2025 released on Monday. The report, published by the state’s IT/BT ministry in collaboration with the Association of Biotechnology Led Enterprises (ABLE), said the bioeconomy has grown from $31 billion two years ago. The sector now contributes 10.5% to the state’s Gross State Domestic Product (GSDP), more than double the national average of 4.6%.

“Our focus is on building a full-spectrum bio-manufacturing economy by supporting deeptech startups, strengthening innovation infrastructure and ensuring that growth reaches beyond Bengaluru to every region of the state,” said Priyank Kharge, Karnataka’s IT/BT minister.

Biopharma led the expansion, contributing over 40% of the state’s bioeconomy, or about $16.44 billion, driven by growth in biologics, biosimilars, vaccines and diagnostics. The development mirrors a broader national trend, with India’s bioeconomy rising to $190 billion in 2025 from $151 billion in 2023. The report noted that the sector’s GSDP share had dipped to 9.49% in 2024 as faster growth in services and IT exports temporarily outpaced bioeconomy gains, before rebounding in 2025.

Regionally, Bengaluru Urban accounts for around 54% of the state’s bioeconomy, followed by Mysuru at 8.7%. Belagavi and Dakshina Kannada together contribute more than 9%, while northern districts are emerging as an agri-biotechnology belt.

On the startup front, 218 new biotech companies were added in 2025, taking the cumulative total to 1,451, with over 75% focused on life sciences and health technology. Bio-industrial biotechnology emerged as the fastest-growing segment, contributing about $11.46 billion, driven by fermentation-based industries, biofuels, enzymes and sustainable materials. The bioservices industry maintained a steady 25.8% share of overall growth.

Between January 2024 and October 2025, the state attracted $1.14 billion across roughly 40 deals spanning biopharma, medtech, precision fermentation, digital health and agribiotech. “The combined impact of the biotechnology policy and startup policy is evident in the expansion of innovation capacity, startup creation and industry investments,” said Manjula N, secretary of the IT/BT department.