The Hindu Business Line : VC investment biggest challenge: CII biotech survey

ONE of the biggest challenges facing the domestic biotech industry is promoting investments by venture capital companies in the sector, a survey conducted by the Confederation of Indian Industry (CII) has indicated.

The survey, which covers 52 companies in the modern biotech sector, states that though venture capital flows to the tune of Rs 300 crore has been estimated into the sector, it is still low for the growing biotech industry. The survey adds that venture capital fund flow is less than 20 per cent of the total funding made in the country.

The survey points out that the investment in research and development at present are insufficient and needs to be increased substantially for the growing biotech industry.

The survey also points to the opportunities for the sector both in terms of growth in domestic market as well as from the point of view of exports. The revenues of the biotech sector have been growing over the past few years. While the total project investment by companies undertaken in the survey was over Rs 500 crore in the last decade, the total revenue has been over Rs 700 crore.

The survey lays stress on the need to promote patent culture by improving the existing patenting infrastructure.

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