Kerala’s BioEconomy touches $8.24 billion; sets path to become green growth leader
Kerala’s fast-evolving BioEconomy has emerged as one of the most dynamic pillars of the State’s economy, growing from $6.25 billion in 2022 to an estimated $8.24 billion dollars in 2025.
Kerala BioEconomy Report 2025, prepared by the Association of Biotechnology Led Enterprises (ABLE) for the State government reveal that the sector’s contribution to the Gross State Domestic Product has risen from 3.96 per cent to over 5.1 per cent in just three years. This steady growth positions the BioEconomy alongside IT, healthcare, tourism and remittances as a key driver of Kerala’s economic expansion.
The report notes that the BioPharma sector remains the largest component of the State’s bio-based economy, accounting for 44 per cent of the total value. It is driven by Kerala’s thriving Ayurveda, nutraceuticals and MedTech industries, supported by a strong base of research and manufacturing capabilities.
The BioIndustrial segment follows with a 35 per cent share, powered by biofuels, fermentation-based industries, marine processing and potable alcohol production.
Traditional strengths such as rubber, coir and organic agriculture continue to sustain the BioAgri sector, while the BioServices segment, including diagnostics, contract research and life science services, is emerging as a new growth area with rising global demand.
A significant feature of Kerala’s BioEconomy is the vibrancy of its startup ecosystem. Between 2022 and mid-2025, the State registered 275 new startups, nearly half of which were in BioPharma, MedTech and biotechnology-linked subsectors.
The Kerala Startup Mission has played a crucial role in this transformation by supporting over 320 startups in life sciences and allied domains through a network of more than 25 incubators.
Private investment in the sector has also shown remarkable momentum. Between 2020 and 2025, Kerala attracted over $35.8 million in healthcare and life sciences funding.
Supporting this industrial expansion is a robust institutional framework anchored by the Kerala Medical Technology Consortium, the Rajiv Gandhi Centre for Biotechnology, and CSIR-NIIST, along with over sixty academic and research institutions.
The government’s long-term vision extends towards transforming Kerala into a global hub for sustainable biotechnology. By 2047, the State aims to raise biotechnology’s share to 10 per cent of its GDP.
Published on October 9, 2025
