Information Technology, Biotechnology and Rural Development Minister Priyank Kharge and others released the Karnataka Bioeconomy 2025 report in Bengaluru on Monday. | Photo credit: special arrangement
Karnataka’s bioeconomy, a $39 billion business, contributes more than one-fifth to the nation’s bioeconomy and more than 10% to the gross state domestic product (GSDP) by 2025, says a newly released report.
The Karnataka BioEconomy Report 2025, prepared for the Karnataka government by the Association of Biotechnology-led Enterprises (ABLE), was released on Monday.
Production orientation
Between 2023 and 2025, the state’s bioeconomy expanded from $31 billion to $39.2 billion, a cumulative increase of 26.5%. Growth was attributed to a strong biopharmaceutical base, rapid bioindustrial diversification and strong bioservices integration.
“Karnataka’s innovation ecosystem—anchored in research institutions, start-ups and global R&D centers—has transformed from research-intensive to manufacturing-oriented and globally competitive,” says the report, which puts the state’s contribution to India’s bioeconomy at 20.63%.
While biopharma remained the anchor with more than 40% share (about US$16.44 billion), driven by biologics, biosimilars, vaccines and diagnostics, bioindustrial became the fastest growing segment (about US$11.46 billion, about 29% share), led by fermentation-based industries, biofuels, enzymes and sustainable materials.
Bio-services also showed steady growth and contributed about 25.8% share.
Economic pillar
According to the report, Karnataka’s bioeconomy accounted for 10.51% of GSDP in 2025. This is more than double the share of biotech sector in India’s GDP (4.57%).
“This positions biotechnology not only as a scientific discipline, but as an economic pillar of a central model of state development,” the report says.
Jump into the starting numbers
Karnataka’s biotech start-up ecosystem continued to grow, with 218 new biotech start-ups added in 2025 alone, marking the highest annual additions of start-ups in three years. This brings the cumulative number of biotech start-ups in the state to 1,451, up from 1,233 in 2024.
The state currently owns a 12-13% stake in the nation’s biotech start-up pool, and more than 75% of these are focused on life sciences and health technology. Bengaluru accounts for about 54% of biotech start-ups.
Mysuru contributes around 8.7% to the state’s bioeconomy, while Belagavi and Dakshina Kannada together account for more than 9%.
On the investment front, between January 2024 and October 2025, Karnataka attracted $1.14 billion across around 40 deals spanning biopharma, medtech, precision fermentation, digital health and agribio.
Collaboration critical
Priyank Kharge, Minister for Information Technology, Biotechnology and Rural Development noted that biotechnology is no longer confined to laboratories but is now a central driver of economic growth, industrial innovation and societal impact.
“Our focus is on building a full-spectrum bio-manufacturing economy by supporting deep-tech startups, strengthening innovation infrastructure and ensuring that growth reaches beyond Bengaluru to all regions of the state,” he said.
Published – 23 Feb 2026 21:14 IST
