Indian Biotech Startups Get a Boost Through BIRAC Funding and Regulatory Support
From breakthrough therapies to sustainable bio-products, India’s biotech industry is filled with new hopes and new promises of a better future. But the path to success is not as it looks. While the startups are sprouting faster than ever before, many are stumbling over two formidable hurdles. One being the scarce venture capital and murky regulatory waters. The Biotechnology Industry Research Assistance Council (BIRAC) is stepping ahead to turn every challenge into a growth opportunity for India’s biotech industry.
According to Dr. Jitendra Kumar, Managing Director of BIRAC, the sector is at a crossroads. In a recent interview with the Business Standard, Dr. Kumar has noted that the entry barriers are now lower for startups with the introduction of biofoundries and other investments. However, for bio-manufacturing at a much larger scale, there is a need for more funding. Even with government support, long development timelines, high risks, and the need for substantial capital continue to discourage early-stage venture capital in the biotech sector.
To help overcome these hurdles, BIRAC set up the AcE Fund, a dedicated program that supports research and innovation by attracting venture capital into biotech startups and small and medium enterprises (SMEs).
As of April 2024, the AcE Fund has committed ₹299 crore to 88 biotech startups, with 16 venture capital firms empanelled to accelerate funding flows.
Besides funding, regulatory hurdles are a major challenge. Especially when it is about the new technologies like CAR-T therapy, which often face unclear approval paths, to mitigate this, BIRAC has created the Regulatory Affairs and Policy Advocacy (RAPA) division, which assists innovators and startups in navigating the complex regulatory landscape by liaising with the Central Drugs Standard Control Organisation (CDSCO).
Despite these challenges, India has witnessed notable success stories in the biotech sector. For example, Revelations Biotech is already selling its fibrous sugar product internationally. The IIT Mumbai professor has started ImmunoACT. This is India’s first CAR-T Therapy. Also, Genova has raised significant funding, which will help the sector grow much faster.
In August 2025, the Indian government launched the Biofoundry Network, a group of 21 facilities across the country designed to speed up biomanufacturing, support Indian Biotech Startups, cut reliance on imports, and help India reach a $300 billion bioeconomy by 2030.
Dr. Kumar emphasized that bioeconomy encompasses not only the usage of renewable natural resources to develop products and energy sources but also improving resource efficiency. The Biofoundry Network aligns with this vision by providing shared infrastructure for startups, SMEs, academia, and industry to test, scale, and commercialize technologies in areas like synthetic biology, sustainable biotech, and advanced therapeutics.
As India works to establish itself as a global biotech leader, tackling funding and regulatory hurdles is essential. Through initiatives like the AcE Fund, the RAPA division, and the Biofoundry Network, BIRAC and the government are building a strong foundation for a thriving and sustainable biotech ecosystem.
