Bio-Plastics - Biomanufacturing Opportunity for India
A report analysing opportunity bioplastics provide for biomanufacturing in India
Authors
Shambhavi is the Chairperson of the Advanced Biology Programme at Takshashila Institution.
Saurabh is a Programme Manager for the Network for Advanced Study of Technology Geopolitics (NAST) Fellowship at the Takshashila Institution.
Executive Summary
Bioplastics present a strategic biomanufacturing opportunity for India, aligning environmental sustainability with industrial growth and economic resilience. Among bioplastics, polylactic acid (PLA) is the most commercially mature, with applications across packaging, textiles, automotive components, agriculture, and healthcare. The global bioplastics market is projected to exceed USD 30 billion by 2030, while India’s domestic bioplastics market, valued at USD 447 million in 2023, is growing rapidly at over 22% annually. Yet India currently accounts for just 0.46% of the global market, underscoring a significant opportunity for domestic production and exports.
India possesses strong fundamentals for PLA manufacturing, including abundant sugarcane and maize feedstocks, established fermentation expertise, and large downstream manufacturing sectors. However, continued import dependence, limited polymerisation capacity, and feedstock competition from food and biofuels remain key challenges. This paper argues for a state-clustered approach supported by BioE3, targeted R&D investment, feedstock productivity improvements, and regulatory incentives to enable India to scale PLA manufacturing, create jobs, support farmer incomes, and emerge as a competitive global bioplastics hub.
Introduction
Bio-manufacturing is the use of biological systems and organisms to produce commercial products such as pharmaceuticals, chemicals, and materials. One such example is bioplastics. Bioplastics are derived from sources such as cornstarch or sugarcane, are industry-compostable1, and can be used as substitutes for conventional plastics. Globally, the bioplastics market is projected to exceed USD 30 billion by 2030, driven by increasing demand resulting from green packaging mandates, circular economy goals, and consumer preference for sustainable products.
Bioplastics are already penetrating multiple sectors, particularly those under regulatory and consumer pressure to decarbonise. Table below provides an overview of the industries in which bioplastics can be used, and Appendix I contains details of established and emerging applications.
| Sector | Key Use Cases | Market Readiness |
|---|---|---|
| Packaging | Compostable food service items, films, and bottles | Commercially established |
| Automotive & Textiles | Biobased interiors, fabrics, and footwear | Scaling phase |
| Consumer Goods | Electronics casings, toys, and personal care products | Early adoption |
| Agriculture | Biodegradable mulch films, controlled-release coatings | Pilot scale |
| Healthcare | Biodegradable sutures, tissue scaffolds | R&D and clinical validation stage |
Based on the type of feedstock used, there are several types of bioplastics, such as polylactic acid (PLA), polyhydroxyalkanoates (PHA), starch-based blends, cellulose-based, and Bio-PET. Appendix 2 outlines the key applications and technology/commercial readiness of different types of bioplastics. Of these, the production of PLA-based bioplastics is at the most advanced stage2. Hence, this report will focus on the development of a PLA-based bioplastics hub in India. The following section will discuss why an investment in bioplastics is necessary, followed by a landscape analysis of the bioplastics industry in India.
Why Should India Invest in Bioplastics?
There are four main reasons - promoting economic growth, meeting waste reduction targets, creating jobs, and reducing import dependence, which make an investment in bioplastics manufacturing a strategic choice for India.
Promote economic growth
India’s bioplastics market, valued at US$447.25 million in 2023, is projected to grow at an annual rate of 22.1%3, at which rate it will reach US$1.8 billion by 2030 and approximately US$3.0 billion by 2033. This trajectory highlights both the strong economic potential of the sector and its importance for sustainable industrial growth. Within this market, PLA alone could account for 30–40% of total bioplastics demand4.
Despite this promise, India currently holds only about 0.46% of the global bioplastics market5, a strikingly small share given India’s manufacturing capacity and agricultural strengths. This gap represents a major opportunity: India can not only meet its domestic bioplastic needs but also position itself as an export hub for global markets.
Beyond industrial benefits, bioplastics also create new value chains for farmers. As agricultural productivity rises, additional biomass and crop outputs will require new end-uses, and bioplastics provide a high-value outlet for this surplus.
Reach waste reduction targets
India generates approximately 9.3 million tonnes of plastic waste annually6, with a significant portion ending up uncollected or in the environment. The scale of India’s plastic problem is immense. To reduce pollution caused by traditional plastics, bioplastics can serve as a sustainable alternative. However, to adequately address waste disposal, industrial composting facilities for PLA-based bioplastics, as well as appropriate labelling and public education, would be required. But with the correct roadmap, PLA offers a scalable, compostable alternative to non-degradable plastics.
Job creation
Bioplastics manufacturing offers job creation opportunities across the value chain. An analyses of jobs created specifically in PLA-based bioplastics is not available. According to one simulation study in the US, an additional $1 billion in bioplastics manufacturing output could support 5,215 jobs across the U.S. economy through direct (operations), indirect (agricultural, logistics, etc) and induced (consumer-led) effects. Refer to table below for projections7.
| Employment | Labour Income ($ million) | Output ($ million) | |
|---|---|---|---|
| Direct Effect | 609 | 97 | 1,000 |
| Indirect Effect | 2,455 | 251 | 1,450 |
| Induced Effect | 2,151 | 148 | 462 |
| Total Effect | 5,215 | 496 | 2,912 |
In the EU, the bioplastics industry alone has been estimated to have created around 15,000 jobs in 20238. It is apparent that the investment in biomanufacturing would lead to jobs in R&D, industry, agriculture, and logistics. The quantum of jobs created will vary depending on the scale of the set-up. But it is likely that similar investments in India would lead to more jobs, since the scale of set-ups would be larger.
Import dependence
Currently, India imports PLA to meet its domestic demand. Under the HSN code 39077000, India has routinely imported millions of US dollars’ worth of PLA9. Thailand, China and Vietnam are the biggest exporters of PLA to India. The development of indigenous biomanufacturing would reduce this import dependence, saving the economy precious US dollars.
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | |
|---|---|---|---|---|---|
| Net Import | 2.48 | 1.00 | 3.42 | 9.04 | 7.05 |
| Total Import | 2.86 | 2.69 | 3.99 | 10.49 | 10.19 |
These factors combined showcase the importance of bioplastics biomanufacturing in India. However, the demand for bioplastics also needs to be matched with a supply potential. The next section will outline the current landscape of the PLA value chain in India.
Bioplastics Manufacturing Supply Chain in India
The supply chain for bioplastics is both similar to and more complex than that of conventional plastics, because it integrates agricultural, chemical, and industrial manufacturing systems.
Feedstock Production
India is a leading producer of sugarcane and corn, which are the primary feedstocks for PLA-based bioplastics10. India ranks fourth globally in corn cultivation area and seventh in total maize production, accounting for about 2% of the world’s total. India is also the second-largest producer of sugarcane globally, accounting for approximately 20% of global production.
| Country | Maize/Corn Production (t/year) | Sugarcane Production (t/year) |
|---|---|---|
| India | ~ 37 million | ~ 405 million |
Major maize-producing states include Karnataka, Madhya Pradesh, Bihar, Tamil Nadu, Telangana, Maharashtra and Andhra Pradesh11. In India, about 61% of maize is used as animal feed (77% for poultry), 26% for industrial use (mainly for the starch industry), 7% for food, and 6% for export and other uses12. Furthermore, as ethanol blending targets rise, domestic Maize is being increasingly diverted to ethanol production, and hence, India is now importing maize to bridge the gap. It imported about one million tonnes in 2024-25, mainly from Myanmar13.
Similarly, the primary use of the sugarcane crop is for sugar production, with a portion of production being exported to manage surplus. In India, 35% of sugar is used for household consumption, and 65% is used for industrial purposes, including beverages and food manufacturing14. The remaining sugarcane is consumed to make end products such as jaggery and khandsari sugar. Furthermore, the higher demand for bioethanol is incentivising a significant diversion of sugarcane towards that goal, driven by government policies and industry recommendations.
Feedstock Processing and Conversion
At this stage, the biological feedstock is converted into intermediate chemicals or monomers, which are used to produce polymers. For PLA, this would be a fermentation process, for which India has many precedents across sectors such as vaccines, pharmaceuticals, biofuels, etc.
Polymerisation of Lactic Acid
The polymerisation of lactic acid to lactide is a bottleneck step for Indian companies. Praj Industries has developed domestic PLA polymerisation technology at demonstration, expected to scale to capacities of 100 tons per annum (TPA) for Lactic Acid, and 60 TPA for Lactide, equivalent to 55 TPA for PLA15. Additionally, Balrampur Chini Mills is constructing the country’s first large integrated sugarcane-to-PLA facility, expected to produce PLA from sugarcane with an annual capacity of 75,000 tonnes16. While these are encouraging first steps, more capacity needs to be built to compete with other players.
Globally, the leaders in polymerising lactic acid into PLA are NatureWorks (based in USA with a second facility in Thailand) and TotalEnergies Corbion (a joint venture between TotalEnergies of France and Corbion of the Netherlands, operating a plant in Thailand), which together dominate commercial-scale PLA production through advanced lactide purification and ring-opening polymerisation technologies. China is also rapidly expanding capacity through companies like Hisun Biomaterials and BBCA/COFCO, now major integrated producers scaling from lactic acid to PLA.
| Company | Country | Approximate PLA Capacity |
|---|---|---|
| NatureWorks | USA / Thailand | ~ 225,000 t/year |
| TotalEnergies Corbion | New Zealand / Singapore / Thailand | 75,000 t/year |
| Hisun Biomaterials | China | >50,000 t/year |
| BBCA/COFCO | China | Scaling to 100,000 t/year |
| Futerro/Galactic | EU / Asia | Expanding |
| Praj Industries | India | Demo (commercial in progress) |
| Balrampur Chini Mills | India | 75,000 t/year (under construction) |
Product Manufacturing
Bioplastic pellets are now used to manufacture a variety of finished goods. For example, at this step, one would mould the pellets into packaging, cutlery, textiles, or films. Furthermore, some products would necessitate blending bioplastics with other additives to balance cost or performance. This step would also include quality control processes.
Distribution & End Use
The final products are distributed through standard channels to retailers and consumers. Depending on the bioplastic product, these can feed into a wide variety of industries currently manufacturing in India, either as core equipment parts or packaging.
The main levers of setting up bioplastic manufacturing would be the availability of feedstocks, water, talent and consumer industries that can buy the bioplastic. Of these, talent can be easily mobilised. The following section assesses the availability of feedstock and the customer base to analyse the potential of select states in India to establish a bioplastic manufacturing hub.
State-level analysis
There is clear potential for India to accelerate its PLA production. However, it is important to build such hubs based on the strengths of individual states to get the best value for investment and ensure smooth functioning of the hub. Based on the factors that would determine the operations of the hub, access to consistent supply of feedstock and market opportunities would act as the best incentives. This section therefore presents a preliminary analysis of select Indian states based on their suitability for hosting biomanufacturing hubs.
| State | Suitability | Feedstock Strength | Industrial / PLA Customer Base | Why It’s Suitable |
|---|---|---|---|---|
| Maharashtra | Most Suitable | High sugarcane & strong maize | Very strong: chemicals, packaging, auto, FMCG, pharma | Best overall balance of feedstock + PLA demand; Praj’s PLA demo plant nearby; strong industrial ecosystem |
| Uttar Pradesh | Most Suitable | India’s #1 sugarcane producer | Large industrial belts: Noida, Ghaziabad, Kanpur, Lucknow | Ideal for cane-based PLA; home of Balrampur’s 75,000 t/y PLA plant; major packaging & FMCG consumers |
| Gujarat | Most Suitable | Moderate cane, some maize | One of India’s largest chemical & polymer hubs | Premier state for selling PLA to chemical, polymer, packaging, textile, and auto supply chains |
| Karnataka | Most Suitable | Strong cane and top maize state | High-tech + industrial: Bengaluru, Mysuru, Dharwad | Attractive for fermentation talent + dual feedstock; strong packaging, auto, electronics clusters |
| Tamil Nadu | Most Suitable | High productivity cane and significant maize | Major auto, textile, electronics clusters | Excellent for South India PLA customers; reliable cane supply and industrial scale-up infrastructure |
| Telangana | Suitable | Good maize; some cane | Pharma & chemical heavy (Hyderabad) | Strong for grain-based fermentation and PLA for pharma/food packaging |
| Andhra Pradesh | Suitable | Good maize; some cane | Pharma, textiles; port access (Vizag, Krishnapatnam) | Good for export-oriented PLA and fermentation projects |
| Madhya Pradesh | Suitable | Major maize state | Industrial hubs around Indore / Pithampur | Ideal for maize-first fermentation and supplying central/west India packaging & auto |
| Bihar | Suitable | Strong maize & good cane | Developing an industrial base | Suitable for upstream fermentation; products shipped to Tier 1 states |
| Punjab & Haryana | Targeted | Good cane; some maize | Dairy, food processing, light manufacturing | Niche PLA for agri/dairy packaging; feedstock good, but manufacturing is weaker |
| West Bengal & Odisha | Targeted | Moderate maize; limited cane | Steel, cement, growing packaging | Could work for specific customer partnerships; not PLA-heavy regions |
| Rajasthan, Chhattisgarh and Jharkhand | Targeted | Limited cane/maize | Select industrial pockets | Useful only with a strong anchor customer or state incentives |
Recommendations for India
India imports maize and sometimes raw sugar, indicating that supply does not match demand or is highly seasonal. The problem is only going to get worse, with ethanol blending targets further depleting already limited supply and the potential for bioplastics to consume a notable share of production as well. Therefore, efforts need to be made to increase productivity, reduce transit costs and increase competition in the bioplastics sector:
The development and deployment of high-yielding (HYV) sugarcane and maize varieties would help increase productivity. More HYV breeding sites should be encouraged nationwide to improve farmers’ access to HYV seeds. Gene editing technologies may help develop such seeds, particularly those that can increase yield while requiring less water intake indigenously. Such projects can be developed under DST and DBT’s umbrella schemes for precision agriculture and climate-resilient agriculture.
The import of genetically modified or edited maize and sugarcane exclusively for bioplastics production could reduce the risk of diversion of domestic output that could satisfy public consumption needs and ensure domestic food security. Furthermore, as sugarcane is a highly water-intensive crop, it would be ideal to regulate its consumption to specific industries to avoid exacerbating water stress.
Active research on bioplastic chemistry through research grants to agricultural universities and other departments should be encouraged to develop technologies and IP in India. Funding for these projects can be routed through initiatives such as BioE3, ANRF, etc. Furthermore, startups can be encouraged to scale piloted ideas for commercialisation. Bilateral research cooperation to co-develop PLA pathways could be considered with countries such as Australia or Thailand.
Farmer-producer organisations (FPOs) can play a vital role in sourcing raw materials while also increasing farmer incomes. States with high feedstock crop production and manufacturing capabilities should incentivise companies to set up PLA manufacturing plants in those areas. Existing players in the sugarcane, poultry feed, or food processing industries can be further incentivised to diversify into the bioplastics sector. Additionally, allowing foreign investment in this sector would help bring in the latest technology, foster competition, and support the development of upstream and downstream industries and professions.
To reduce the upfront costs of setting up PLA production plants and generate economies of scale until bioplastics become commercially competitive with traditional plastics, bioplastic use can be incentivised by amending the Plastic Waste Management Rules.
Appendix I:
Established Commercial Applications
Bioplastics are increasingly being used in packaging applications, both flexible and rigid. Flexible forms (such as bags, films, and wraps) and rigid formats (like bottles, containers, and trays) are already commercially available17.
In the food service sector, bioplastics are used to produce compostable cutlery, cups, and straws. Furthermore, major brands such as Samsung and Dell are using bioplastics in electronic packaging and some device housings.
In agriculture, biodegradable mulch films, seed coatings, and controlled-release fertiliser coatings reduce soil pollution and eliminate the need for film collection and disposal18. Similarly, compostable plant pots and trays reduce waste in nursery operations19.
Bioplastics can also be used in fast-moving consumer goods, such as toothbrush handles, razors, toys, and electronic casings, making an impact in a high-volume industry.
In the textile and fashion industry, biobased polyesters (e.g., Sorona20 , PLA blends) are used to produce sustainable fabrics, footwear soles, and fashion accessories, potentially reducing dependence on fossil-fuel-derived polymers like PET and nylon.
In the automotive and transportation sector, interior panels, seat fabrics, dashboards, and trims made with bioplastic composites help reduce vehicle weight and carbon footprint. Industry leaders such as Toyota and Mazda utilise bioplastics in their car interiors.
Emerging and Potential Use Cases
In the medical and healthcare sector, biodegradable sutures, drug delivery systems, tissue scaffolds, and implants can be made from PLA or PHA. These materials break down naturally, reducing surgical waste and the need for removal surgeries.
PLA is already the most widely used filament in desktop 3D printing. Furthermore, research is ongoing on PHA and biocomposites to improve strength and biocompatibility.
In the electronics and electrical industries, the development of biobased circuit boards and insulation materials is underway. Furthermore, there’s potential for fully compostable electronic components as part of e-waste reduction strategies.
In the marine and fishing industry, biodegradable fishing nets and gear could be developed to prevent “ghost fishing” and reduce marine plastic pollution21.
In the construction industry, bioplastic composites can be used in insulation panels, paints, flooring materials, and 3D-printed architectural components. Furthermore, they can be used as binders or fillers in eco-friendly concrete and coatings.
Appendix 2:
| Type | Feedstock | Key Applications | Bio degredable | Technology Readiness Level (1-10) | Commercial Readiness |
|---|---|---|---|---|---|
| PLA (Polylactic Acid) | Corn, sugarcane | Packaging, food service, textiles | Compostable (industrial) | 9 | Widely commercial |
| PHA (Poly hydroxy alkanoates) | Vegetable oils, sugar, agri-waste | Medical devices, agri-films, packaging | Fully biodegradable (including marine) | 6-8 | Emerging scale-up |
| Starch based Blends | Potato, cassava, maize starch | Bags, films, containers | Yes | 9 | Commercial |
| Cellulose based | Wood pulp, cotton linters | Films, coatings, hygiene products | Some | 7-9 | Moderate scale |
| Bio-PET / Bio-PE | Sugarcane ethanol | Bottles, rigid packaging | No (but recyclable) | 9 | Commercial |
Footnotes
Industry-compostable refers to materials that are designed to biodegrade only under controlled industrial composting conditions, where temperatures are typically above 55–60°C, humidity is regulated, and microbial activity is optimised. Such conditions allow the material to break down into carbon dioxide, water, and biomass within a specified time frame, as defined by standards like EN 13432 or ASTM D6400. Industry-compostable materials generally do not decompose effectively in home composting systems or in the natural environment and require access to specialised composting facilities for proper end-of-life treatment.↩︎
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Sorona® is a bio-based polymer developed by DuPont, made in part from plant-derived sugars (typically corn). This bio-based component is polymerised with petrochemical inputs to create a high-performance material used mainly in textiles, carpets, and engineered plastics↩︎
Ghost fishing refers to the phenomenon in which lost, abandoned, or discarded fishing gear, such as nets, lines, traps, and pots, continues to capture and kill marine life long after it is no longer in use. These “ghost” gears can persist in oceans for years, entangling fish, turtles, marine mammals, and seabirds, damaging coral reefs, and contributing to marine plastic pollution.↩︎