The Karnataka Bioeconomy Report 2025, released by the state’s IT/BT ministry, in collaboration with the Association of Biotechnology Led Enterprises (ABLE), a non-profit industry platform, said that the state’s bioeconomy increased from $31 billion two years earlier.
The sector now accounts for 10.5% of the state’s gross state domestic product (GSDP), more than double India’s national average of 4.6%, said the report.
“Our focus is on building a full-spectrum bio-manufacturing economy by supporting deeptech startups, strengthening innovation infrastructure and ensuring that growth reaches beyond Bengaluru to every region of the state,” said IT/BT minister Priyank Kharge.
Biopharma led the growth, contributing more than 40% to the state’s bioeconomy, or roughly $16.44 billion, driven by biologics, biosimilars, vaccines and diagnostics. This mirrors a broader national trend, as India’s overall bioeconomy expanded to $190 billion in 2025 from $151 billion in 2023.
The report further said that the state’s GSDP share from the sector dipped to 9.49% in 2024 from $151 million in 2023, as faster growth in services and IT exports temporarily outpaced bioeconomy gains, before rebounding in 2025.
Key growth drivers for the bioeconomy include biotech startups and regional biotechnology hubs. Bengaluru Urban leads with around 54% of the state’s bioeconomy, followed by Mysuru, which contributes about 8.7%, Belagavi and Dakshina Kannada together account for more than 9%, and the northern districts are emerging as an agri-biotechnology belt, the report said.
On the startup front, 218 new biotech companies were added in 2025, bringing the cumulative total to 1,451, with more than 75% focused on life sciences and health technology.
Bio-industrial biotechnology was the fastest-growing segment, contributing about $11.46 billion, led by fermentation-based industries, biofuels, enzymes and sustainable materials, a sign of Karnataka’s push towards a stronger biomanufacturing economy, the report said. Bioservices industry held a steady 25.8% share in the overall growth.
The state attracted $1.14 billion through roughly 40 deals between January 2024 and October 2025, spanning biopharma, medtech, precision fermentation, digital health and agribio. “The combined impact of the biotechnology policy and startup policy is evident in the expansion of innovation capacity, startup creation and industry investments,” said Manjula N, secretary, IT/BT department.