The Indian biotechnology industry was poised for an exponential growth over the next five years, a Confederation of Indian Industry study said.

The sector, which accounts for a mere 2 per cent of the global biotechnology market now, is expected to increase its marketshare to 10 per cent in this period.

"The biotechnology sector has made rapid strides in the past decade and its growth might replace information technology as the flavour of the coming decade," the study said.

Indigenous biotechnology products and services currently account for approximately $150 million.

The consumption of Indian biotechnology products is estimated to increase to $1.5 billion by 2007 and $4.5 billion by 2010.

The study said the country's human capital was the strongest asset for this knowledge-led industry. In India, about 3 million graduates, 700,000 post-graduates and 1,500 PhDs qualify in bio-sciences and engineering each year.

It is estimated that 10 per cent of researchers and 15 per cent of scientists engaged in pharmaceuticals/biotech research and development in the US are of Indian origin.

India also has a good network of research laboratories, well-developed base industries and access to the intellectual resources of non-resident Indians.

The study said extensive clinical trials and research made possible by access to a vast and diverse disease population was also helping India's quest to become a force to reckon with in the biotechnology sector.

The study said the Indian government had played its part by setting up the department of biotechnology in 1986.

The department is the nodal agency for policy making and development. The budgetary allocation to biotechnology had also increased from $150 million in 1987-1998 to $500 million in 2002-03.

The study also said a number of Indian pharmaceutical companies had already latched onto the biotechnology bandwagon, including Wockhardt, Ranbaxy, Dr Reddy's Laboratories and Cadila.