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Biotechnology which relies heavily on biological sciences as well as engineering sciences has numerous applications in several sectors of economy such as food, feed, fuel, health care, energy, environment, agriculture, new materials, biodiversity conservation etc. The successful application of biotechnology requires the inputs of cell biology, molecular biology and engineering sciences for design and production of new molecules, micro- organisms, animals and plants with improved properties. The setting up of a separate Department of Biotechnology (DBT) under the Ministry of Science and Technology in 1986 gave a new impetus to the development of biotechnology in India. During this time, DBT has actively promoted and accelerated the pace of biotechnology development in the country. In the last few years, several strategic plans to enhance the education and research capabilities of the academic institutions and to promote the commercialization of biotechnology through various schemes have been made. The main areas of focus for research and development are agricultural biotechnology (crops, biofertilizers, bio pesticides, crop management, medicinal and aromatic plants), animal biotechnology, aquaculture and marine biotechnology, seribiotechnology, and industrial biotechnology. Special emphasis is being given to R&D for human health care, stem cell biology, tissue engineering, biomaterials and medical devices etc. Environmental biotechnology is also given due importance to take care of the environmental issues. A few centres of excellence in focused areas have been established recently. Establishment of a few autonomous institutions in specific areas of biotechnology has also given further thrust to R&D activities. These include National Institute of Immunology at New Delhi, National Centre for Cell Sciences at Pune, Centre for DNA Fingerprinting and Diagnosis at Hyderabad, National Brain Research Centre at Manesar, National Centre for Plant Genome Research at New Delhi and Institute of Bioresources and Sustainable Development at Imphal. These new initiatives are in addition to a few well established and reputed institutions such as Central Drug Research Institute at Lucknow, Centre for Cellular and Molecular Biology at Hyderabad etc. under the edges of Council of Scientific and Industrial Research. Keeping in view the need to create a critical mass of small business units that have the potential to drive the innovation, a new scheme entitled Small Business Innovation Research Initiative to encourage public/private partnership has been recently launched. In addition, biotechnology parks at several places in the country have been established for development of biotech products. These trends and initiatives for R&D activities along with the progress of biotech industry will be dealt with in the lecture.