THIRUVANANTHAPURAM: The contribution of bio-economy to the state’s GSDP has increased from 3.96% to 5.1% in three years, according to the ‘Kerala Bio-economy Report 2025’. The report on the state’s bio-economy — the economic system that uses renewable biological resources from land and sea — was prepared by the Association of Biotechnology Led Enterprises for the state government.
According to the report, the bio-economy’s share in Kerala’s Gross State Domestic Product (Bio-economy) increased from 3.96% to 5.1% in just three years. Alongside sectors such as IT, healthcare, tourism, and remittances, the bio-economy has now emerged as one of the key drivers of Kerala’s economic growth.
The report noted that the value of Kerala’s bio-economy, which stood at USD 6.25 billion in 2022, rose to USD 7.54 billion in 2024 and has now reached USD 8.24 billion in 2025 — marking a 12% annual growth rate. The report was officially released by Industries Minister P Rajeev, during Bio Connect 3.0 — an International Life Science Conclave & Expo — jointly organised by the Kerala Life Sciences Industries Park and Bio360 Life Sciences Park, subsidiaries of the Kerala State Industrial Development Corporation (KSIDC), in the capital recently.
Bio-pharma leads the growth
The bio-pharma sector is identified as the most significant contributor to Kerala’s bio-economy, accounting for 44% of its total value. Strong research and manufacturing capabilities in ayurveda, nutraceuticals, and medtech form the backbone of this segment.
The bio-industry sector ranks second, contributing 35% of the total value, with industries such as biofuels, fermentation-based manufacturing, marine processing, and alcohol production driving its growth. Traditional sectors such as rubber, coir, and organic farming continue to sustain the bio-agriculture segment, while diagnostics, research, and life sciences services have strengthened the bio-services sector.
The report also highlights that between 2020 and 2025, over 35.8 million US dollars in private investments flowed into Kerala’s healthcare and life sciences industries.
Institutional backbone and policy support
Kerala’s impressive growth in the bio-economy is supported by a robust institutional framework comprising the Kerala Medical Technology Consortium, Rajiv Gandhi Centre for Biotechnology, and CSIR-NIIST, among others. Over 60 research institutions contribute to this ecosystem, producing nearly 10,000 skilled professionals every year.
Progressive government policies such as the Kerala Industrial Policy 2023, BioE³ Policy (Economy, Environment, Employment), and the upcoming Biotechnology and Life Sciences Policy have created a strong foundation for the sector’s expansion. Unlike many other states, Kerala’s bio-economy is being built on a grassroots development model that emphasises inclusive growth and community participation, the report noted.
Ayurveda and nutraceuticals powering exports
The combined ayurveda and nutraceuticals sector alone generates more than USD 1 billion in value, exporting to over 40 countries. Looking ahead, the Government of Kerala has set ambitious targets — to increase biotechnology’s contribution to the state’s GSDP to 10% by 2047, nurture 1,000 startups, train 1,00,000 professionals, and achieve USD 5 billion worth of exports under the “Made in Kerala” brand. These initiatives aim to position Kerala as a leading global hub for sustainable bio-economic development, the report concluded.
