Date: 23/05/2023
Relevance: GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests, India and its neighborhood- relations.
Key Phrases: QUAD, Biotechnology, Emerging Technology Working Group, National Biotechnology Development Strategy, Biomanufacturing Hub, APIs, Physical Infrastructure, Australian Strategic Policy Institute.
Context:
- The potential establishment of a Quad-led biomanufacturing hub in India to enhance cooperation and address supply chain vulnerabilities in the biotechnology sector.
Introduction
- The Quad, consisting of Australia, India, Japan, and the United
States, established a Critical and Emerging Technology Working Group in
March 2021 to foster cooperation and explore opportunities in critical and
emerging technologies, including biotechnology.
- However, the potential for Quad collaboration in biotechnology remains largely untapped.
- The establishment of a Quad-led biomanufacturing hub in India, which
would provide the necessary impetus to enhance cooperation in this field,
has been proposed.
- The idea has been thoroughly examined by researchers at the Australian National University and holds great promise for the Quad nations.
The Transformative Power of Biomanufacturing:
- Biomanufacturing utilizes living systems, such as microorganisms
and cell cultures, to produce molecules and materials on a commercial scale.
- This technology has the potential to revolutionize the global industrial system; with projections suggesting that up to 60% of physical inputs to the global economy could be produced using biomanufacturing.
- Several countries, including the United States and China, recognize the importance of optimizing this ecosystem and have implemented specific policies to shape their bio-economies.
Quad Nations' Complementary Strengths:
- India's National Biotechnology Development Strategy envisions the country as a "Global Biomanufacturing Hub" by 2025.
- While the strategy sets an ambitious target of $100 billion for the
hub, it is crucial to acknowledge that India's aspirations require
external support, particularly from its Quad partners, to kick start its
initial development.
- The Quad should establish a biomanufacturing hub in India to leverage the country's economic potential and address supply chain vulnerabilities.
- Each Quad nation possesses complementary strengths that can be
harnessed to create this hub.
- The United States has significant funding capabilities, while Japan, Australia, and the U.S. all boast advanced biotechnology innovation ecosystems and intellectual property.
- India, on the other hand, possesses a skilled workforce and the potential to provide affordable scalability.
India's Suitability as the Biomanufacturing Hub
- India is an ideal choice to host the biomanufacturing hub due to
its existing infrastructure, expertise in pharmaceutical manufacturing, and
available workforce.
- The Australian Strategic Policy Institute recognizes India as a top performer in biomanufacturing research output and publication share.
- India also holds significant potential in low-cost biomanufacturing, particularly in the production of enzymes, reagents, research materials, and equipment.
- Manufacturing costs in India are estimated to be around 33% lower compared to the United States. However, India still requires substantial capability and capacity uplifts to become a global leader.
Strengthening Physical Infrastructure
- India aims to become a leading biomanufacturing hub by increasing
fermentation capacity tenfold to 10 million liters within the next three to
five years.
- China has also expressed its intention to capture this market, similar to its domination of small-molecule active pharmaceutical ingredients (APIs).
- Concerns about China's dominance have prompted India to launch a
production-linked incentive scheme that allocates $2 billion to the
pharmaceutical sector for the manufacturing of biopharmaceuticals, APIs, key
starting materials, and related products.
- However, dependence on China in the biomanufacturing sector would be detrimental to both India and the Quad.
- The proposed hub can facilitate technology transfer, connect investors, and establish a biomanufacturing fund administered through the Quad to support India's efforts in reducing dependency on China.
- Recent policy changes in India allow for the establishment of
foreign universities and encourage scholar exchange programs.
- Training should also focus on commercializing research and development, a common challenge for non-U.S. countries within the Quad.
Facilitating Cross-Quad Collaboration
- The biomanufacturing hub can serve as a central location for all current bilateral government efforts and establish a research collaboration office to facilitate cross-Quad collaboration.
- The hub can also harmonize language, regulations, and data-sharing related to biomanufacturing to ensure secure supply chains for Quad nations and facilitate international collaboration.
- Such streamlining efforts will enhance collaboration within the Quad and create opportunities for partnerships with nations outside the Quad as well.
Conclusion
- The establishment of a Quad-led biomanufacturing hub in India
holds tremendous potential for transforming the global industrial system and
strengthening the Quad nations' position in the biotechnology sector.
- India's infrastructure, manufacturing expertise, and skilled workforce make it an ideal choice to host this hub.
- By leveraging the complementary strengths of the Quad nations and addressing supply chain vulnerabilities, the hub can accelerate technology transfer, boost workforce quality, and harmonize regulations, ultimately establishing India as a global leader in biomanufacturing.
- The Quad-led biomanufacturing hub will not only benefit India but also enhance cooperation and collaboration among Quad nations, driving innovation and economic growth in this critical area of technology.
Source: The Hindu
Mains Question:
Q. Discuss the potential benefits and challenges of establishing a Quad-led biomanufacturing hub in India, and its implications for strengthening cooperation in the field of biotechnology among the Quad nations. (150 words).
