Bio-Based Chemicals and Enzymes: A New Frontier in India’s Bioeconomy

Syllabus: GS3/ Science & Technology/ Environment/ Economy

Context

• India is promoting bio-based chemicals and enzymes as key pillars of a green bioeconomy, linking climate action, industrial growth, and rural income diversification.

What Are Bio-Based Chemicals and Enzymes?

• Bio-Based Chemicals: Bio-based chemicals are industrial chemicals produced from biological feedstocks such as sugarcane, corn, starch, agricultural residues, or other forms of biomass.
  • They are manufactured through fermentation, microbial processes, or enzymatic pathways, replacing fossil fuel-based raw materials.
  • Examples include organic acids (such as lactic acid), bio-alcohols, solvents, surfactants, and intermediates used in plastics, cosmetics, and pharmaceuticals.
• Enzymes: Enzymes are biological catalysts that accelerate chemical reactions under mild conditions.
  • Enzymes typically function at lower temperatures and pressures, thereby reducing energy consumption and emissions.
  • They are widely used in detergents, food and beverage processing, pharmaceuticals and vaccines, textile and leather processing, pulp and paper industries and advanced biomanufacturing.

Why Does India Need Bio-Based Chemicals?

• Reducing Import Dependence: India remains dependent on petrochemical imports for several industrial intermediates. For example, India imported roughly $479.8 million worth of acetic acid in 2023.
  • Bio-based alternatives can reduce exposure to volatile fossil fuel markets.
• Leveraging Agricultural Strength: India possesses a large agricultural base capable of supplying biomass feedstocks. This creates opportunities for;
  • Diversified farmer income.
  • Value addition to crop residues.
  • Development of rural bio-industrial clusters.
• Strengthening Climate Commitments: Bio-based chemicals align with India’s Net Zero commitments and circular economy goals. They reduce lifecycle carbon emissions compared to fossil-based products.
• Industrial Competitiveness: India has deep expertise in fermentation technologies due to its strong pharmaceutical and vaccine ecosystem.
  • Scaling bio- manufacturing can position India as a global supplier of sustainable industrial inputs.

Policy Framework in India

• BioE3 Policy: The Department of Biotechnology has prioritised bio-based chemicals and enzymes under the BioE3 (Biotechnology for Economy, Environment and Employment) policy. It focuses on;
  • Biomanufacturing infrastructure.
  • Technology translation and scale-up.
  • Employment generation.
• Bio-RIDE Scheme: A ₹9,197 crore outlay to support biotechnology research and industrial development, including a specific component for Biomanufacturing and Biofoundry.
• Infrastructure Development: Setting up Biomanufacturing Hubs and Bio-AI hubs to accelerate the transition from lab-to-market for sustainable materials.

What are the global best practices? 

• The EU Bioeconomy Strategy and Action Plan provides coordinated support for bio-based chemicals as part of circular bioeconomy goals.
  • It links industrial transformation to climate goals, waste reduction, and sustainable growth. 
• In the U.S., the USDA BioPreferred Program mandates federal procurement preference for certified bio-based products, including chemicals and enzymes, creating early markets for producers. 
• China’s bioeconomy development plans explicitly prioritise high-value bio-based chemicals and enzyme technologies as strategic sectors. 
• In Japan, priority projects funded through METI/NARO integrate bio-based chemical research with manufacturing readiness.

Risk in Developing Bio-Based Chemicals Sector

• Cost Competitiveness: Bio-based products have higher production costs compared to their petrochemical counterparts.
  • This cost disadvantage creates a potentially temporary barrier to private investment in the early stages of scale-up.
• Feedstock Availability: Reliable, sustainable, and affordable biomass supply chains remain a constraint.
  • There is intense competition for raw materials from other sectors, such as food and animal feed, which can constrain the availability of feedstock for chemical production.
• Market Adoption: There are concerns whether bio-based chemicals can seamlessly substitute existing inputs in manufacturing pipelines and whether downstream manufacturers are willing to switch, even when costs are comparable.

Way Ahead

• Develop shared biomanufacturing infrastructure such as biofoundries, pilot plants, and demonstration facilities to reduce capital risks.
• Establish robust standards, certification systems, and carbon accounting frameworks to build market confidence.
• Promote R&D in synthetic biology, enzyme engineering, and Bio-AI integration to enhance productivity and cost efficiency.

Source: TH