Why in the News?

The Biotechnology for Economy, Employment and Environment (BioE3) Policy has prioritised bio-based chemicals and enzymes as strategic sectors. Bio-based chemicals and enzymes use renewable biological feedstocks and reduce dependence on fossil-based industrial inputs. The sector is important for India to cut petrochemical imports (e.g., $479.8 million acetic acid in 2023), strengthen energy security, and support climate goal.

What are Bio-based chemicals and enzymes?

1. Bio-based chemicals are industrial chemicals produced using biological feedstocks like sugarcane, corn, starch, or biomass residues, often through fermentation or enzymatic processes. 
2. Examples include organic acids (such as lactic acid), bio-alcohols, solvents, surfactants, and intermediates used in plastics, cosmetics, and pharmaceuticals. 
3. Enzymes are biological catalysts widely used in detergents, food processing, pharmaceuticals, textiles, pulp and paper, and increasingly in biomanufacturing. 
4. Enzymes often work at lower temperatures and pressures, reducing energy use and emissions.

How Do Bio-based Chemicals Align with India’s Energy Security and Industrial Policy Objectives?

1. Import Substitution: Reduces dependence on petrochemical imports such as acetic acid valued at $479.8 million in 2023.
2. Feedstock Utilisation: Leverages agricultural residues, sugarcane, and starch base to create industrial value chains.
3. Manufacturing Expansion: Strengthens domestic production capacity in sustainable chemicals.
4. Energy Efficiency: Enables lower temperature and pressure processing, reducing industrial energy consumption.
5. Strategic Autonomy: Diversifies raw material base beyond fossil fuels.

How Does the BioE3 Policy Institutionalise Bio-manufacturing as a Governance Priority?

1. Policy Prioritisation: Places bio-based chemicals and enzymes under the Department of Biotechnology’s BioE3 framework.
2. Economic Integration: Links biotechnology with employment generation and environmental sustainability.
3. Sectoral Coordination: Aligns industrial biotechnology with manufacturing sector expansion.
4. Innovation Ecosystem: Encourages microbial strategy development for chemical production.

Does India Possess Institutional and Market Capacity to Scale Bio-based Production?

1. Corporate Leadership: Praj Industries and Godrej Industries lead bio-chemical initiatives.
2. Refinery Innovation: Godavari Biorefineries produces acetyls and intermediates such as acetic anhydride (ethyl acetate).
3. Enzyme Market Consolidation: Top players account for over 75% market share.
4. Key Industry Actors: Novozymes India, DuPont, DSM, Advanced Enzyme Technologies, BASF SE, and Ultreze Enzymes Private Limited operate in India.
5. Fermentation Expertise: Strong pharmaceutical and vaccine manufacturing base supports scaling.

What Governance and Regulatory Challenges Constrain Sectoral Expansion?

1. Capital Intensity: Bio-refineries require high initial investment.
2. Feedstock Volatility: Agricultural raw material supply fluctuates seasonally.
3. Technology Dependence: Advanced microbial engineering still requires global collaboration.
4. Regulatory Clearances: Multi-layer approvals delay commercial scaling.
5. Market Competitiveness: Petrochemical alternatives remain cost-competitive due to legacy infrastructure.

How Does Global Policy Context Shape India’s Strategic Choices?

1. EU Bioeconomy Strategy: Integrates bio-based chemicals into circular economy and climate transformation goals.
2. USDA BioPreferred Program: Mandates federal procurement preference for bio-based products.
3. Climate Alignment: Links industrial decarbonisation with bio-manufacturing.
4. Waste Reduction: Encourages conversion of biomass residues into chemicals.
5. Global Competition: Positions bio-based chemicals as emerging industrial frontier.

Conclusion

Bio-based chemicals and enzymes integrate industrial growth with environmental sustainability. India’s agricultural base, fermentation expertise, and BioE3 policy provide structural advantage. Scaling requires regulatory reform, technology deepening, and feedstock security. The sector offers scope for import substitution, green growth, and strategic industrial positioning.

PYQ Relevance

[UPSC 2023] Discuss several ways in which microorganisms can help in meeting the current fuel shortage.

Linkage: This PYQ tests understanding of industrial biotechnology in addressing energy security and reducing fossil fuel dependence under GS 3. Bio-based chemicals and enzymes similarly use microbial processes to enable green manufacturing and reduce petrochemical imports.

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now