Kerala’s BioEconomy has grown into one of the State’s most promising growth engines, expanding from $6.25 billion in 2022 to an estimated $8.24 billion in 2025, according to the Kerala BioEconomy Report 2025 prepared by the Association of Biotechnology Led Enterprises (ABLE) for the State government.
The report says the BioEconomy’s share in the Gross State Domestic Product (GSDP) has increased from 3.96 % to over 5.1 % in just three years. This puts it in the same league as Kerala’s other leading sectors — information technology, healthcare, tourism and remittances.
The BioPharma segment continues to dominate Kerala’s bio-based economy, contributing 44 % of the total value. The report attributes this strength to Kerala’s well-developed Ayurveda, nutraceutical and MedTech industries, backed by robust research and manufacturing networks.
Experts note that the State’s long tradition in natural medicine and herbal formulations has provided a strong foundation for scaling bio-based healthcare and product innovation.
The bioindustrial segment accounts for another 35 %, fuelled by activities in biofuels, fermentation, marine processing and potable alcohol production. Together, these industries are helping diversify Kerala’s manufacturing base while improving the State’s green-energy and export potential.
Traditional sectors such as rubber, coir and organic agriculture continue to anchor the bio-agri segment, sustaining livelihoods and supporting rural economies.
Kerala’s bio-services segment — covering diagnostics, contract research and life-science services — is emerging as a new frontier of growth. Rising global demand for clinical and contract research has helped several Kerala-based firms tap into international partnerships and outsourcing opportunities.
A key driver behind this transformation is the State’s vibrant startup ecosystem. Between 2022 and mid-2025, Kerala registered 275 new startups, nearly half of which were in biopharma, medtech and other biotechnology-linked subsectors.
The Kerala Startup Mission (KSUM) has been central to this shift, supporting more than 320 startups in life sciences and allied domains through a network of over 25 incubators. Private investment has followed: between 2020 and 2025, Kerala attracted $35.8 million in healthcare and life-sciences funding.
The State’s biotechnology growth rests on a strong institutional base that includes the Kerala Medical Technology Consortium, the Rajiv Gandhi Centre for Biotechnology and CSIR-NIIST, supported by more than 60 academic and research institutions across Kerala.
Officials believe that this synergy between public research and private enterprise is what makes Kerala’s bioeconomy distinct from those of larger states.
Looking ahead, the government’s vision extends to transforming Kerala into a global hub for sustainable biotechnology. By 2047, it aims to raise biotechnology’s share to 10 % of the State’s GDP, aligning with India’s broader transition to a knowledge-driven, innovation-based economy.
