The Quad should have its own biomanufacturing hub in India

Saurabh Todi is a research analyst in the high-tech geopolitics program of the Takshashila Institution, a policy think tank based in Bengaluru. Shambhavi Naik is Takshashila's head of research.

Biomanufacturing, which uses microorganisms and cell cultures to produce molecules and materials on a large scale, is rapidly rising in importance for Indo-Pacific nations.

The world's response to COVID-19 depended on the rapid production of new vaccines through biomanufacturing. Countries with preexisting manufacturing capabilities became the gatekeepers of vaccine supply.

But biomanufacturing is not only about vaccines or gene therapies. Biomanufacturing could transform the global industrial system, allowing up to 60% of physical inputs to be produced using this technology in the form of alternative proteins, plant-based oils and biofuels, bioplastics and innovative products such as bio-concrete that are still under development.

Market analysis company BCC Research has forecast that annual revenues from biomanufacturing will top $40 billion this year, up from $26.5 billion in 2018. In the Indo-Pacific, India and China are both positioning to scale up biomanufacturing to corner market share.

It is in the best interests of Group of Seven nations that India remain at the forefront of this sector to sustain resilient supply chains through politically fractured times.

China has already identified the promotion of biomanufacturing at scale, including plastics, oils and agri-food technology, as an industrial priority. Data analysis by the Australian Strategic Policy Institute shows that China-based researchers now account for the highest share of top biomanufacturing research papers globally, with the U.S. and India following behind.

Given China's track record of dominating the manufacturing of emerging technologies, there is good reason to believe that it will build its biomanufacturing base faster than its competitors.

Cultivated pork is displayed at an event in Shanghai in 2021: China has identified the promotion of biomanufacturing at scale as an industrial priority.    © Reuters

India's response to the COVID-19 crisis provides a strong case study of the country's potential in this area, however. The development of an indigenous vaccine, expedited enhancement of vaccine production capacity, regulatory flexibility and the ability to manufacture raw materials were critical to India's participation in the global response to the pandemic.

India can scale biomanufacturing at competitive price points, especially for the low-cost manufacture of enzymes, reagents, vaccines and research consumables. Analysis by Invest India, the government's investment promotion arm, shows that the cost of life-sciences manufacturing in India is 33% cheaper than in the U.S.

Scaling up biomanufacturing in India will be fraught with challenges, however, but these can be overcome with external support. The Quad group in particular is ideally placed to collaborate and boost India's efforts.

The Quad's Critical and Emerging Technology Working Group, established in 2021, has identified advanced biotechnologies such as synthetic biology, genome sequencing and biomanufacturing as key focus areas. However, focused agreements to operationalize collaboration in this area are lacking.

The potential informal Quad leaders' gathering on the sidelines of the G-7 summit in Hiroshima, Japan this weekend could provide an opportunity to remedy the situation with a consensus to establish a group biomanufacturing hub in India.

The individual members of the Quad have taken steps to bolster domestic biomanufacturing capacity.

India's National Biotechnology Development Strategy aims to promote a public-private partnership model to make India a global biomanufacturing hub with a business valuation of at least $100 billion by 2025. Japanese Prime Minister Fumio Kishida's Grand Design and Action Plan for a New Form of Capitalism includes sections on biomanufacturing, promoting primary research and development and advancing large-scale manufacturing in areas such as microorganism fermentation production technology.

Last September, the U.S. announced plans to invest $2 billion to advance the National Biotechnology and Biomanufacturing Initiative to support innovation and growth, strengthen biomanufacturing supply chains and promote collaboration among industry, government and academic institutions.

However, more than this will be required to compete with China on a scale and cost level that can cater to global demand for biomanufactured products. The most sustainable approach would be to combine the strengths of all the Quad members.

Each has a growing biotechnology ecosystem with its own strengths. For example, the U.S. leads in financing biotechnology, while Australia, Japan and the U.S. also possess advanced biotechnology innovation ecosystems and important intellectual property.

India has the advantage of skilled manpower and the potential to provide economies of scale. A Quad production hub in India could leverage all the strengths of the group's members.

First, the hub could focus on strengthening physical infrastructure by facilitating technology transfer and connecting investors. India's existing biotechnology hubs in Bengaluru, Pune, Hyderabad and Faridabad are ideal clusters around which the Quad partners can build world-class biomanufacturing facilities. These hubs are a lodestone for pharmaceutical manufacturing, enzyme biomanufacturing and biotechnology startups.

Second, the hub could focus on bolstering workforce capabilities by establishing permanent training facilities in cooperation with area universities. These centers would give researchers access to cutting-edge technology and training.

Finally, the hub can lower barriers to research and commercial cooperation through a collaboration office. The hub could house programs to support joint projects between India and other Quad countries. The harmonization of regulations and data sharing regarding biomanufacturing would secure supply chains for Quad nations and allow for more effective international collaboration.

The proposed Quad-led biomanufacturing hub in India would have the potential to bring significant benefits to all group members by ensuring the security of global biomanufacturing supply chains and advance Quad leadership.