Bengaluru: Karnataka’s bioeconomy sector, valued at an estimated $39 billion in 2025, now contributes $10 billion every quarter to the state’s economy, Priyank Kharge, minister for Electronics, IT/BT said Monday, citing a new report. He added that the sector now accounts for 10 percent of Karnataka’s Gross State Domestic Product (GSDP).
“Our focus is on building a full-spectrum biomanufacturing economy by supporting deep-tech startups, strengthening innovation infrastructure, and ensuring that growth reaches beyond Bengaluru to every region of the State,” Kharge said, unveiling the report, compiled in collaboration with Association of Biotechnology Led Enterprises (ABLE).
According to the Karnataka BioEconomy Report 2025, Karnataka’s bioeconomy sector accounts for 21 percent of the sector’s contributions to the national coffers.
It adds that the state’s bioeconomy sector recorded $8.2 billion value expansion between 2023 and 2025.
The Karnataka BioEconomy Report 2025 is out and it clearly reflects the scale, depth and momentum of Karnataka’s biotechnology ecosystem.
– Karnataka’s BioEconomy has crossed ₹3.53 lakh crore in 2025, marking strong and sustained growth over the last two years.
– The State… pic.twitter.com/MXbTz4asK9
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) February 23, 2026
The bioeconomy sector’s share in Karnataka’s GSDP dipped to 9.49 percent in 2024 owing to faster growth in services and IT exports, but rebounded strongly in 2025. “The sector’s integration with healthcare, agriculture, industrial biotechnology, and renewable energy creates extensive multiplier effects across Karnataka’s economy,” the report added.
Within the sector, verticals like biopharma continue to anchor growth with over 40 percent share or $16.44 billion, driven by biologics, biosimilars, vaccines and diagnostics.
Biotechnology has emerged as the fastest-growing segment, valued at $11.46 billion, led by fermentation-based industries, biofuels, enzymes and sustainable materials—signalling Karnataka’s shift toward a strong biomanufacturing economy, the report added.
According to the report, Karnataka has 1,451 cumulative startups into active biotechnology, life-science enterprises—up from 1,233 in 2024.
Bengaluru remains the linchpin of growth in the sector, accounting for 54 percent of the state’s total output. But there appears to be far more decentralisation in biotechnology when compared to IT with other cities in the state also accounting for impressive growth.
Mysuru contributes around 8.7 percent of this growth, while Belagavi and Dakshina Kannada together account for over 9 percent. The northern districts remain the hub of agri-biotechnology belt, the report added. Successive governments in Karnataka have in recent years introduced policies and measures to fuel this momentum.
This included operationalisation of the Karnataka Innovation Authority Act, 2020, which enabled regulatory flexibility for biotech enterprises, and funding for over 100 biotech and life-sciences startups through ELEVATE and Fund-of-Funds. The state also pushed investors to go ‘Beyond Bengaluru’ to Tier-2 and Tier-3 cities by creating incubation centres.
The report adds that the state’s focus on biomanufacturing scale-up, sustainability and distributed innovation align with global shifts toward a green and knowledge-intensive economy. “Going forward, the opportunity lies in deepening linkages between biotechnology, digital technologies, and green energy, ensuring that Karnataka’s BioEconomy remains a catalyst for sustainable industrial transformation,” it says.
(Edited by Amrtansh Arora)
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