Mains: GS III – Economy| Agriculture| Science and Technology
Why in News?
Recently the bio-based chemical concept is gaining importance in relation to sustainable practices.
What is Bio-based chemicals?
Bio-based Chemicals – They are industrial chemicals produced using biological feedstocks like sugarcane, corn, starch, or biomass residues, often through fermentation or enzymatic processes.
Examples include organic acids (such as lactic acid), bio-alcohols, solvents, surfactants, and intermediates used in plastics, cosmetics, and pharmaceuticals.
Enzymes – They are biological catalysts widely used in detergents, food processing, pharmaceuticals, textiles, pulp and paper, and increasingly in biomanufacturing.
Enzymes often work at lower temperatures and pressures, reducing energy use and emissions.
Why does India need such chemicals?
Potential – India has strong fundamentals for scaling bio-based chemicals and enzymes:
A large agricultural base,
Deep expertise in fermentation from pharmaceuticals and vaccines,
A growing manufacturing sector.
Creation of new market – Expanding this space could reduce import dependence on petrochemicals, create new markets for agricultural produce, and position India as a competitive supplier of sustainable industrial inputs.
For example, India imported roughly $479.8 million worth of acetic acid in 2023.
Where does India stand today?
Bio E3 policy – India has prioritised bio-based chemicals and enzymes as a priority area under the Department of Biotechnology’s BioE3 policy.
Bio-based segment – In the bio-based chemicals segment, companies such as Praj Industries and Godrej Industries are leading.
Other firms – Godavari Biorefineries are pioneering ethanol-based, bio-derived chemicals in India, while Jubilant Ingrevia produces “acetyls” intermediates (for example, acetic anhydride/ethyl acetate).
Emerging companies such as StringBio are using novel microbial strategies to develop such chemicals.
Indian enzymes market – It is consolidated in nature with top players accounting for more than 75% of the market share.
Companies such as Novozymes India, DuPont, DSM, Advance Enzyme Technologies, BASF SE, and Ultreze Enzymes Private Limited are key players in the Indian market.
What are other countries doing?
The EU Bioeconomy Strategy and Action Plan – It provides coordinated support for bio-based chemicals as part of circular bioeconomy goals.
It links industrial transformation to climate goals, waste reduction, and sustainable growth.
U.S – The USDA BioPreferred Program mandates federal procurement preference for certified bio-based products, including chemicals and enzymes, creating early markets for producers.
China – The bioeconomy development plans explicitly prioritise high-value bio-based chemicals and enzyme technologies as strategic sectors.
Japan – The priority projects funded through METI/NARO integrate bio-based chemical research with manufacturing readiness.
What are the risks?
Cost Issues – A key risk in developing the bio-based chemicals sector is the comparative cost of bio-based products relative to petrochemical alternatives.
While this cost disadvantage may be temporary and limited to early stages of scale-up, it nonetheless creates a significant entry barrier for private investment.
Feedstock Infrastructure – A second risk relates to the availability of reliable feedstocks and supporting infrastructure required to produce different categories of bio-based chemicals at scale.
Market adoption — Specifically, whether bio-based chemicals can seamlessly substitute existing inputs in manufacturing pipelines and whether downstream manufacturers are willing to switch, even when costs are comparable.
What lies ahead?
Scaling shared biomanufacturing infrastructure — such as biofoundries, pilot plants, and demonstration facilities under BioE3 — can reduce capital risk for firms.
Clear standards, certification, and procurement policies can help create build investor confidence.
