Current challenges that the Indian biotechnology industry has include; inadequate funding, low investment, complex regulatory framework, and poor infrastructure. Also, the lack of a pool of qualified personnel and little interaction between learning institutions, business entities, and government agencies hinder the process. Lack of strong IPR hinders innovation, and gaining market entry in the international markets is hard because of high standards and competition. To overcome these problems the government of India has initiated funding structures and grant opportunities like the Biotechnology Industry Research Assistance Council (BIRAC) and encouraging PPPs. There are signs that bureaucratic procedures to fasten approvals are being implemented and greatly improving infrastructure through the creation of biotech parks and increased government funding. Efforts are being made to build quality human resource so as to enhance the standard of knowledge, corporate training is being reinforced and attempts to integrate academic curriculum with the industrial requirements are being made. To promote IPR laws and initiatives for their implementations along with raising awareness campaigns for the protection of innovations are also carried out. Further, the government policies for encouraging exports of biotechnology products and assisting companies in to attain the international quality certification, are enhancing the market access. For these comprehensive measures are slowly and gradually countering the challenges of industry opening up the industry for growth and innovation.