PIB Summary - 5th September 2025 | PIB (Press Information Bureau) Summary - UPSC PDF Download

India: A Global Bioeconomy Powerhouse

Growth Trajectory

• The bioeconomy in India has expanded significantly from USD 10 billion in 2014 to a projected USD 165.7 billion in 2024.
• This growth represents a compound annual growthrate (CAGR) of approximately 35% over the decade, contributing around 4.25% to the GDP.
• The target for the bioeconomy is set at USD 300 billion by 2030 and between USD 1.4 to 2.7 trillion by 2050, which would account for 6.5% to 12% of GDP.
• Globally, the bioeconomy is expected to reach USD 30 trillion by 2050, constituting 12% of world GDP.

Subsectoral Distribution (2024)

BioIndustrial

• Share: 47% (USD 78.2 billion)
• Focus Areas: Biofuels, bioplastics, enzymes, green chemicals
• Role: Key driver of the circular and green economy

BioPharma & BioMedical

• Share: 35.2% (USD 58.4 billion)
• Focus Areas: Affordable generics, vaccines, biologics, diagnostics, MedTech
• Role: Global reputation for cost-effective biopharma

BioAgri

• Share: 8.1% (USD 13.5 billion)
• Focus Areas: GM crops, Bt cotton success, precision farming, biofertilizers, biopesticides

BioResearch & BioIT

• Share: 9.4% (USD 15.6 billion)
• Focus Areas: Contract research, clinical trials, bioinformatics, biotech software
• Role: Strengthens India’s position as a global R&D hub

State & Regional Contribution (2024)

Top States

• Maharashtra: USD 35.45 billion (21.4%)
• Karnataka: USD 32.4 billion (19.5%)
• Telangana: USD 19.9 billion (12%)

Other notable states include Gujarat, Andhra Pradesh, Tamil Nadu, and Uttar Pradesh.

Regional Share

• South: 45.4% (dominant due to biotech clusters in Bengaluru and Hyderabad)
• West: 30.3%
• North: 18.5%
• East: 5.8%

Major Policy Interventions

• BioE³ Policy (2024): Aims to enhance Biotechnology for Economy, Environment, and Employment.
• Biomanufacturing & Biofoundry Initiative: Promotes a shift from consumptive to regenerative production methods.
• 21 BioEnabler facilities: Provides shared infrastructure for startups and R&D, focusing on areas like microbial biotech, smart proteins, marine biotech, and gene therapy.
• BioE³ Youth Challenge (2025):. monthly innovation contest offering prizes and incubation for grassroots biotech talent.

Breakthrough Achievements

Ethanol Blending

• Achieved 20% ethanol blending by 2025, five years ahead of schedule.
• Benefits: Farmers benefited by ₹1.21 lakh crore, elimination of sugarcane arrears, forex savings of ₹1.44 lakh crore, and crude oil substitution of 245 LMT.

Vaccine Leadership

• Serum Institute: Increased global market share from 19% in 2021 to 24% in 2024.
• Top Indian Firms: Three Indian companies, including Serum Institute, Bharat Biotech, and Biological E, ranked among the world’s top 10 vaccine producers.
• Global Contributions: Supplied 40% of WHO vaccines, with 20% of exports going to Africa.

Precision Medicine & Antimicrobial Resistance (AMR)

• Launch of Nafithromycin, an anti-AMR antibiotic.
• Advancements in CAR-T therapies, AI-driven diagnostics, and oncology gene sequencing.

Climate Change & Sustainability Role

The bioeconomy contributes to:

• Emission reduction through biofuels, recycling, and bioplastics.
• Carbon capture initiatives in agriculture, afforestation, and food waste reduction.
• Greener manufacturing processes that reduce dependence on fossil fuels.

It is central to India’s net-zero roadmap aimed for 2070.

Startup & Investment Ecosystem

• Startups: Growth from 5,365 in 2021 to an expected 13,000 in 2025 (142% increase).
• Products: Over 800 new products launched with $600 million in follow-on funding.
• Foreign Direct Investment (FDI): Increase in MedTech FDI from $370 million in 2022 to $618 million in 2024.
• Ecosystem Support: Backed by organizations like BIRAC, DBT, and various venture funding and incubation infrastructures.

Global Positioning

• India is recognized as a vaccine hub due to its low-cost and mass production capabilities.
• The country is also an ethanol leader with the fastest adoption curve globally.
• India is emerging as a precision medicine hub within the Global South and is becoming a base for R&D outsourcing in pharma and bioinformatics.
• By 2050, India aims to rival the US, EU, and China as a central bioeconomy power.

Challenges & Way Forward

Challenges:

• Need for regulatory harmonization across different subsectors.
• Management of biosafety, bioethics, and antimicrobial resistance (AMR).
• Addressing funding volatility and global competition in biotech patents.
• Scaling up from pilot projects to industrial-level biomanufacturing.

Way Forward:

•  Strengthening intellectual property (IP) regimes, clinical trial capacities, and global partnerships. 
•  Incentivizing research and development (R&D) through tax breaks, green financing, and rural biotech adoption. 
•  Enhancing regional biotech clusters, particularly in East and North India. 
•  Fostering public trust by raising awareness about biotech safety and its benefits. 

GST Reforms 2025: Relief for Common Man, Boost for Businesses

 Historical Context 

Pre-GST Era (Before 2017)

• The indirect tax system was fragmented, involving various taxes like VAT, excise, service tax, octroi, and entry tax.
• Multiple levies led to a cascading effect, resulting in a "tax on tax" scenario.
• Variations in state laws created a compliance burden and increased litigation.
• Weak input tax credit provisions contributed to high costs for goods and services.

GST Introduction (2017)

• GST was rolled out on 1st July 2017 through the 101st Constitutional Amendment.
• The new tax system subsumed 17 taxes and 13 cesses into a single national tax.
• This created a "One Nation, One Tax, One Market" framework.
• GST introduced IT-based filing, improved transparency, and expanded the tax base.

GST Performance till 2025

• Taxpayer Base: Increased from 66.5 lakh in 2017 to 1.51 crore by 2025.
• Revenue Growth: Monthly collections rose from an average of ₹82,000 crore in FY 2017–18 to ₹2.04 lakh crore in FY 2024–25, with a compound annual growth rate (CAGR) of approximately 18%. Gross collections doubled to ₹22.08 lakh crore in four years.
• Formalization: Enhanced compliance and technology adoption contributed to increased revenues.

2025 GST Reform Highlights

• Simplification of Tax Structure: The tax structure will be simplified, moving from four slabs (5%, 12%, 18%, 28%) to two slabs: 5% and 18%. The 40% slab for luxury and sin goods (such as tobacco, aerated drinks, luxury cars, yachts, and private aircraft) will be retained.
• Focus Areas: The reforms aim to provide relief to the common man, lower input costs for Micro, Small and Medium Enterprises (MSMEs), boost agriculture and manufacturing, and correct inverted duty structures.

Sector-Wise Impact

A. Household & Food

• Daily essentials such as soaps, toothpaste, shampoos, and bicycles will see a reduction in GST to 5%.
• Indian breads, paneer, and UHT milk will be exempt from GST.
• Packaged foods like sauces, pasta, chocolates, coffee, and preserved meat will have their GST reduced from 18% or 12% to 5%.
• The GST on TVs (over 32 inches), air conditioners, and dishwashers will decrease from 28% to 18%.
• Impact: These changes are expected to enhance affordability and increase demand for fast-moving consumer goods (FMCG) and consumer durables.

B. Housing & Construction

• The GST on cement will be reduced from 28% to 18%.
• The GST on marble, granite, bricks, and bamboo products will decrease from 12% to 5%.
• Impact: These reductions will lower construction costs, making housing more affordable, and will stimulate the infrastructure sector, leading to job creation.

C. Automobiles

• The GST on two-wheelers (up to 350cc) and small cars will be reduced from 28% to 18%.
• The GST on buses, trucks, three-wheelers, and auto parts will also decrease from 28% to 18%.
• Impact: These changes will provide relief to the middle class and promote auto manufacturing and exports.

D. Agriculture

• The GST on tractors will be reduced from 12% to 5%.
• The GST on tires and tractor parts will decrease from 18% to 5%.
• The GST on irrigation equipment, harvesters, and sprinklers will be reduced from 12% to 5%.
• The GST on bio-pesticides and natural menthol will decrease from 12% to 5%.
• Impact: These changes will lower input costs for farmers, provide relief to the agricultural sector, and promote sustainable farming practices.

E. Services

• The GST on hotels (charging less than ₹7,500 per day) will be reduced from 12% to 5%.
• The GST on gyms, salons, and yoga services will decrease from 18% to 5%.
• Impact: These changes are expected to boost the hospitality, wellness, and tourism sectors.

F. Textiles, Toys & Handicrafts

• The GST on manmade fibre will be reduced from 18% to 5%, and the GST on yarn will decrease from 12% to 5%.
• The GST on handicrafts, statues, paintings, and toys will be reduced from 12% to 5%.
• Impact: These changes are expected to boost exports, support artisans, create rural jobs, and promote cultural preservation.

G. Education

• Exercise books, pencils, erasers, crayons, and sharpeners will be exempt from GST.
• The GST on geometry boxes and trays will be reduced from 12% to 5%.
• Impact: These changes will reduce education costs and benefit students.

H. Healthcare

• The GST on life-saving drugs and diagnostic kits will be reduced from 12% to 0%.
• The GST on other medicines (Ayurveda, Unani, Homeopathy) will decrease from 12% to 5%.
• The GST on medical oxygen and surgical instruments will be reduced from 12–18% to 5%.
• The GST on spectacles will decrease from 28% to 5%.
• Impact: These changes will make healthcare more affordable and support domestic pharmaceutical and medical technology industries.

I. Insurance

• Life and health insurance premiums will be exempt from GST.
• Impact: These changes will promote financial security and support the "Insurance for All" initiative by 2047.

Broader Economic Impact

• Consumers: Lower costs will lead to higher disposable income, boosting demand.
• MSMEs: Reduced input costs and corrected inverted duty structures will enhance competitiveness.
• Manufacturing: The reforms will encourage domestic value addition and exports.
• State Revenues: Simplified rates and a wider tax base will lead to higher compliance and stable revenues.
• Employment: Growth is expected in sectors such as construction, auto, textiles, and handicrafts.
• Inflation: There is an expectation of moderation due to lower GST rates on essential goods.
• Formalization: The simplified two-slab system is likely to reduce disputes and encourage compliance.

Challenges Ahead

• Revenue Neutrality: There is a risk of revenue loss from sharp rate cuts, which needs to be offset by improved compliance.
• State Compensation: Some states may face revenue shortfalls, especially after the phase-out of cess.
• Transition Issues: Businesses will need to adapt quickly to the new slabs, and there may be IT-related challenges.
• Luxury/Sin Goods Taxation: The high 40% rate for luxury and sin goods may sustain black market activities.

Long-Term Significance

• The reforms reinforce GST as a citizen-centric and business-friendly tax system.
• They align with India’s goals of improving the Ease of Living and Ease of Doing Business.
• The reforms support the vision of Viksit Bharat by 2047, which includes affordable healthcare and education, a strong MSME and manufacturing base, and sustainable agriculture.
• The aim is to create a formalized and transparent tax system.

 Conclusion 

• The GST Reforms of 2025 represent a significant overhaul of the tax system since its rollout in 2017. The shift from a complex multi-slab system to a simpler, fairer two-rate structure aims to reduce tax burdens on essentials, housing, healthcare, education, and other sectors.
• These reforms are designed to support businesses, state revenues, and foster a cycle of lower costs, higher demand, and stronger economic growth.