Over the years, a number of stakeholders, including those representing the Indian system of medicine, have conveyed that some aspects of the Biodiversity Act 2002 restricted their operations and therefore needed to be changed. The Biodiversity Act of 2023 addresses most of these concerns. These stakeholders also include the seed industry, the pharmaceutical and other sectors, and the research community.
The new act aims to promote Indian medical systems like Ayurveda, attract more foreign investment, and simplify and streamline processes so that everyone may easily abide by its requirements.
The amendment offers an exemption (from benefit sharing) for the commercial use of cultivated medicinal herbs and codified traditional knowledge, though it doesn’t define either word. Given their ambiguity and broad definitions, these two terms will probably be helpful to pharmaceutical companies.
Provisions have been made to expedite the approval procedure when biological resources are used in scientific studies or when patent applications are filed. The Amendment decriminalises offences under the 2002 Act, does not set an absolute maximum on the penalty, and connects the severity of the penalty to the extent of the harm done.
As a result of the revival of ayurveda (now on a worldwide scale) and revived interest in nutraceuticals and supplements that are more “natural” in origin, there has been a rise in the demand for biological resources, as well as a shift in emphasis towards sustainable farming and efficient management of biological resources.
While the state is responsible for upholding its obligations under the CBD and the Nagoya Protocol, the government also wants to foster the AYUSH, pharmaceutical, and healthcare sectors given their strategic and economic significance. It would be interesting to observe how the industry and the authorities adjust to this new system.
