The launch of the BioE3 Policy (Biotechnology for Economy, Employment and Environment) by the Department of Biotechnology (DBT) and the Biotechnology Industry Research Assistance Council (BIRAC) is set to catalyse growth and innovation in the smart protein sector in the coming decade. The policy is a push towards self-reliance in manufacturing and a circular economy in bio-based materials. Smart protein has been identified as a sector of focus under the policy that leverages food processing and bio-manufacturing to provide sustainable, climate-resilient alternatives to our current food dependencies. 

The BioE3 policy, approved by the Union Cabinet in August 2024, aims to foster high-performance bio-manufacturing in seven critical sectoral pillars. The inclusion of smart proteins and functional foods in the policy highlights the government’s recognition of the challenges facing the long-term sustainability of our current food systems. Current and projected reliance on animals for protein aggravates a multitude of global risks. These vulnerabilities, including the accelerated depletion of natural resources, rising anthropogenic greenhouse gas emissions, and dangerous consequences to public health through antimicrobial resistance and zoonoses, are particularly concerning in developing countries like India. Smart proteins provide a safer and more sustainable pathway for feeding the growing population by leveraging the country’s strengths in bio-processing, food science, and manufacturing.

Popularly known as alternative proteins, smart proteins include meat, eggs, dairy, and seafood made from plants, fermentation, and cell cultivation. According to a Boston Consulting Group and Blue Horizon study, the global alternative protein market is projected to reach USD 290 billion by 2035, which would account for nearly 11 percent of annual global protein consumption. Indian entrepreneurs in this sector have a dual opportunity— to fulfil this growing market demand both domestically and internationally as suppliers of ingredients, inputs, and end-products. 

Currently, the Indian market already boasts over 500 products across various formats spanning meat, eggs, dairy. The BioE3 policy sets the stage not only for accelerated research and development but also for the large-scale commercialisation of plant-based, cultivated, and fermentation-derived proteins. The emphasis on innovation-centric research and development will be supported through increased funding for critical research areas for smart protein. 

Currently, scaling up in the smart protein sector faces two major challenges—access to financing and infrastructure. These twin challenges exacerbate the technological bottlenecks in improving the taste, texture, nutritional profile, and accessibility of smart proteins. These hurdles contribute to smart proteins falling short of mainstream appeal, which can be addressed through more dedicated research, significantly higher funding, and infrastructural support. The lack of infrastructural support in the form of access to incubators and common instrumentation facilities, as well as ease of procuring specialised equipment, impedes research as well as the techno-commercialisation of smart proteins. Through the establishment of centralised facilities like bio-manufacturing hubs and bio-foundries that stimulate research, product development, and scale-up, these challenges can be overcome. 

Moreover, in hopes of decentralising innovation, the policy aims to set these hubs in tier-II and tier-III cities, which will not only generate employment but also provide an opportunity to tap into local ingredient value chains. Over time, the successful localisation of the ingredient supply chain for smart protein can have a significant impact on agricultural resilience and farmer welfare. The Bio-RIDE scheme has provided a strong backbone to the BioE3 policy, with a substantial outlay of ₹9,197 (1.1 billion USD) crore over five years. It aims to promote bio-entrepreneurship through seed funding, incubation, and mentorship. 

The most promising aspect of the scheme is the emphasis on industry-academia collaborations, which is especially crucial for the smart protein sector, where there is a growing disconnect between the foundational research being conducted in academic institutions and startups working on end-products in the ecosystem. Through this scheme, the translation of scientific discoveries into marketable products that are more tasty, affordable, and convenient for the Indian consumer can be made possible. 

To truly encourage the growth of the industry beyond early-stage research and innovation, the industry requires additional levers of policy support from national government agencies and state governments. This can bolster the goals set by the BioE3 policy in a coordinated and sustained manner. This is especially true given the need for clear regulations from the apex food regulatory body, especially for novel categories of smart proteins such as precision fermentation and cultivated proteins. In addition to attractive policies, entrepreneurs riddled with financial risks of scaling up commercial manufacturing look to the government for subsidies and incentives, such as production-linked incentives. Including smart protein as an eligible sector under the carbon credit trading schemes can also be encouraging for entrepreneurs. 

The long-term success of the BioE3 policy will depend on coordinated efforts across government agencies, industry players, and academic institutions. As India moves forward with this ambitious plan, it has the potential to become a global leader in sustainable protein production, addressing critical issues of food security, environmental sustainability, and economic growth. The coming years will be crucial in determining how effectively these policies translate into tangible benefits for consumers, entrepreneurs, the nation, and the planet as a whole.