It is the stated goal of the current government to make India a US$5 trillion economy in the near term. This would make India creep out of the “developing country” tag and move slowly towards a “developed country” tag. No country in the history of the world has become a developed country without sustained investment in science and biotech.
The Indian economy lost ₹32,000 crores every day during the 21-day lockdown during the first wave of COVID-19. The budget for the Department of Biotechnology, India’s premier agency for life science development is ₹2,581 crores. The budget for life sciences for Purdue University (not a top 50 science university in the US) is ₹3,000 crores.
Let us take one problem at a time and try and find solutions.
Non-linearity of basic science research
Japanese scientists were studying bacteria in 1987 and were surprised to discover repeated, interspersed sequences of a gene when they were studying bacterial metabolism. At that time, no one had any idea that funding for this project would create one of the most consequential technologies of our time. Therein lies the first problem of non-linearity.
Without a capability in basic sciences, it is not possible to be leaders in science but it is impossible to create a linear correlation between basic science funding and eventual outcomes which are beneficial to society.
When governments make budgets, especially in a resource-constrained country like ours, it is quite natural that they would lean towards funding areas where there is a near term, predictable return.
Every US$1 that the National Institute of Health, the largest funder of biomedical research in the world, generates US$8.38 of private research after eight years. The Human Genome project alone is estimated to have spurred investments of over US$1 trillion globally, a stunning 178 fold return on investment. The government simply needs to bite the bullet and fund science at over two per cent of GDP based on the experience of the past 200 years.
Scientists as a wealth creator
Barring a few people who are truly passionate about life sciences (and the country needs to be grateful to them), the sad fact is that most people who start a bachelors in life sciences do so because they could not get into engineering or medicine.
Also Read: How biotech is changing the global agriculture game for investors
The main reason for this is that life sciences are simply not a financially rewarding career in India. A PhD in life sciences today earns less than any IT professional with basic experience. If we truly need to motivate the next generation of scientists, we have to demonstrate an “Infosys” version of biotech where there is substantial wealth creation for the top 200 employees.
Established companies, as well as startups, need to be generous with their stock option programs and prove that they present a once in lifetime wealth creation opportunity for scientists who succeed in their goals. Science needs to be seen as an aspirational profession just as engineering and medicine are seen today.
Translational science funding
I once presented to a venture capitalist who very candidly said, “I cannot even understand your business deck, how do I understand your business?” In the west, there are several biotechs focused VC funds that have scientists and clinicians on their rolls. Barring a few exceptions, the Indian venture capital community has shied away from taking bets on biotech innovation.
Australia runs a translational research program where, upon qualification, the government provides a 40 per cent rebate on all costs and then venture capitalists take it from there. If we truly want to jump-start translation in India, we will have to stop talking about incremental reductions in GST for customs duty etc. (which have a nominal effect) and provide a booster dose of such benefits.
The VC community needs to step up and partner with founders who, in turn, have the responsibility of explaining the science with a story that is understandable and relatable. If the VC community needs more persuasion, here is a little known fact: Biotech investments consistently provide better returns than tech investments!
We stand as a nation at the crossroads. Invest in science for the next 20 years at over two per cent GDP and become a developed nation, or do not invest and continue to be a developing nation and become the manufacturing warehouse of the world.
We got lucky with COVID-19. Let us ensure we do not depend on luck the next time and truly become atmanirbhar for our citizens.
–
Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic
Join our e27 Telegram group, FB community, or like the e27 Facebook page
Image credit: Canva Pro
The post The role of biotech in taking India from developing to developed appeared first on e27.