Mumbai, Sep 24 (IANS): The biopharma sector has emerged as a critical component of the country's bioeconomy, contributing to 49 per cent of India's biotechnology output, according to a report on Tuesday.

The report offers a comprehensive analysis of India's biopharma sector, showcasing its exponential growth and emergence as a major global player in bioeconomy.

"India's biopharma sector is uniquely positioned to address global health challenges, from pandemic preparedness to developing advanced biotherapeutics and vaccines," said H. S. Sudhira, Director of Gubbi Labs and lead author of the report.

"The growth observed is driven by a combination of evolving regulatory landscapes and robust international partnerships, showcasing India's significant role in shaping global healthcare innovation," Sudhira added.

As per the report, by Gubbi Labs and Cactus Communications, the Biologics CDMO market size is expected to grow from $13.58 billion in 2023 to $24.77 billion by 2028, at a CAGR of 12.78 per cent during the forecast period (2023-2028).

There has also been a significant rise in R&D investments, with Indian companies spending nearly 8-10 per cent of their revenue on research, particularly in drug discovery and development.

The biopharma segment develops products such as therapeutics, vaccines, and diagnostics.

Of these, diagnostics alone account for 52 per cent ($20.4 billion) share of the total biopharma market, while the therapeutics segment accounts for 26 per cent ($10.3 billion).

The vaccine segment (excluding Covid-19 vaccines) accounts for the rest (22 per cent, at $8.7 billion).

India remains the largest vaccine producer only second to the European Union (EU), with annual production capacities of around 14.5 million kg -- comparable with that of the EU's annual production capacities, of around 15.5 million kg, the report said.