India holds an extraordinary share of the planet’s living wealth. With less than 2.5% of the world’s land area, the country shelters roughly 8% of all recorded species, from Himalayan medicinal herbs to mangrove ecosystems along the coasts. This natural abundance is also a resource that pharmaceutical firms, agribusinesses, and researchers across the world want to access. The Biological Diversity Act, 2002 is the law that decides who can use these biological resources, on what terms, and how the communities who have protected them for generations are compensated. Understanding its provisions is essential for anyone studying environmental law, urban ecology, or sustainable development.
Table of Contents
- Why India needed a dedicated biodiversity law
- Biodiversity conservation, sustainable use and benefit-sharing
- A three-tier structure for management
- The National Biodiversity Authority
- Granting approvals for genetic resources
- Advising the government and coordinating efforts
- Safeguarding indigenous knowledge
- Lessons from the biopiracy cases
- Benefit-sharing in action
- What changed with the 2023 amendment
Why India needed a dedicated biodiversity law
The Act did not emerge in isolation. It was India’s response to the Convention on Biological Diversity (CBD), a global treaty adopted at the 1992 Earth Summit in Rio de Janeiro and signed by India the same year. The Convention set three goals for every member country: conserve biodiversity, use its components sustainably, and share the benefits of genetic resources fairly. India enacted the Biological Diversity Act in 2002 to translate these international commitments into enforceable domestic law.
There was also a more practical trigger. Through the 1990s, foreign corporations had begun patenting products based on Indian plants and traditional remedies. These cases of biopiracy exposed how easily a country’s genetic and cultural heritage could be appropriated without consent or compensation. A clear legal framework was needed to regulate access and assert national sovereignty over biological resources.
Biodiversity conservation, sustainable use and benefit-sharing
The Act is built on three pillars that mirror the Convention on Biological Diversity. The first is conservation. The law empowers the Central Government to notify threatened species and prohibit or regulate their collection, and it allows State Governments to declare ecologically important areas as biodiversity heritage sites. This gives authorities the legal tools to protect habitats and species under genuine threat.
The second pillar is sustainable use. Conservation does not mean locking away resources entirely. Instead, the Act aims to ensure that biological resources are used in a way that does not exhaust them for future generations. Regulating commercial extraction and bio-survey activities helps prevent over-harvesting of valuable species such as medicinal plants.
The third pillar, and arguably the most distinctive, is fair and equitable benefit-sharing. When a person or company profits from accessing a biological resource or the knowledge associated with it, a share of those benefits must flow back to the communities and regions that conserved them. This is the principle of Access and Benefit-Sharing (ABS), and it sits at the heart of the law.
A three-tier structure for management
To put these principles into practice, the Act creates a decentralised, three-tier institutional structure. At the apex is the National Biodiversity Authority. At the state level are State Biodiversity Boards, which handle approvals and awareness within their jurisdictions. At the grassroots are Biodiversity Management Committees, set up at the level of local bodies such as panchayats and municipalities.
This structure is significant for urban governance too. Cities and towns are required to constitute these committees, meaning biodiversity documentation is not limited to forests and villages. As of late 2023, more than 2.7 lakh Biodiversity Management Committees had been constituted across the states and union territories, preparing People’s Biodiversity Registers that record local species and the knowledge attached to them.
The National Biodiversity Authority
The National Biodiversity Authority (NBA) is the centrepiece of the law. It is a statutory autonomous body established in 2003 under the Ministry of Environment, Forest and Climate Change, with its headquarters in Chennai. The NBA functions as the gatekeeper that decides how India’s genetic resources may be accessed by outsiders.
Granting approvals for genetic resources
The most important regulatory function of the NBA is controlling access. Under the original Act, any foreign national, non-resident Indian, or company with non-Indian participation had to obtain prior approval from the NBA before accessing biological resources occurring in India for research or commercial use. Approval is also required before anyone transfers the results of research on Indian biological resources to a foreign party, or applies for any intellectual property right such as a patent based on those resources.
This approval process is where benefit-sharing is operationalised. Before granting access, the NBA can impose conditions ensuring that monetary or non-monetary benefits reach the relevant communities. In effect, the patent or product cannot move forward until an equitable arrangement is in place.
Advising the government and coordinating efforts
Beyond granting approvals, the NBA plays an advisory and coordinating role. The Act directs it to advise the Central Government on matters relating to the conservation of biodiversity, sustainable use of its components, and equitable benefit-sharing. It also advises State Governments on selecting biodiversity heritage sites and on managing threatened species.
The Authority coordinates the activities of the State Biodiversity Boards, provides them technical guidance, and builds databases and documentation systems for biological resources and associated traditional knowledge. One of its more proactive powers allows it to take measures, including legal action, to oppose the grant of intellectual property rights in any country on biological resources or knowledge obtained from India. This is the legal muscle behind India’s fight against biopiracy.
Safeguarding indigenous knowledge
Perhaps the most socially important feature of the Act is its protection of traditional knowledge. India’s indigenous and rural communities have developed deep knowledge about the medicinal and agricultural uses of plants over centuries. The Act recognises that this knowledge has commercial value and that the communities holding it deserve both recognition and a share of any profits derived from it.
Lessons from the biopiracy cases
The urgency of protecting traditional knowledge became clear through a series of high-profile disputes. In 1995, the US Patent and Trademark Office granted a patent on the wound-healing use of turmeric, a practice known in Indian households for generations. India’s Council of Scientific and Industrial Research challenged it by producing ancient Sanskrit and Urdu references, and the patent was revoked in 1997. Similar battles followed over a neem-based fungicide patent granted in Europe and a basmati rice patent in the United States.
These cases led India to build the Traditional Knowledge Digital Library, a searchable database that translates traditional medicinal knowledge from Ayurveda, Siddha, Unani, and Yoga into international languages. By making this documentation available to patent examiners abroad, India shifted from fighting wrongful patents after the fact to preventing them from being granted in the first place. The Biological Diversity Act complements this defensive tool with a legal regime for consent and compensation.
Benefit-sharing in action
The clearest example of benefit-sharing working as intended is the case of the Kani tribe in Kerala. Scientists at a state research institute developed a herbal drug called Jeevani from the Arogyapacha plant, after learning about its restorative properties from the Kani people. A share of the licensing revenue and royalties was returned to the tribal community through a trust fund. This arrangement is frequently cited as a model of how the ABS mechanism can convert traditional knowledge into tangible benefits for its custodians.
Importantly, the Act protects the rights of local people themselves. Growers, cultivators, vaids, and hakims practising indigenous medicine are exempted from the requirement of prior intimation when they use biological resources in their traditional ways. The law regulates outsiders seeking to commercialise these resources, not the communities living with them.
What changed with the 2023 amendment
The framework was significantly revised by the Biological Diversity (Amendment) Act, 2023. The government’s stated aim was to reduce compliance burdens for domestic users, particularly the AYUSH sector, registered Indian practitioners, and small enterprises, while encouraging research and investment. Indian companies, for instance, now only need to give prior intimation to the State Biodiversity Board rather than seek full NBA approval for many activities.
The amendment also decriminalised offences under the Act, replacing imprisonment with monetary penalties, and it sought to strengthen the role of Biodiversity Management Committees in negotiating benefit-sharing. A legal note from the National Law School of India University explains that new provisions were added to clarify the functions and composition of these committees. Yet the changes have also drawn criticism. Environmental groups and several state biodiversity boards have argued that easing access for industry, and reducing the direct role of local communities in negotiating benefits, could weaken the conservation spirit of the original law and of the Convention on Biological Diversity.
This tension captures the central challenge of biodiversity governance. The law must balance economic development and innovation on one side against conservation and community rights on the other. How that balance is struck will shape whether India’s living heritage is protected or quietly eroded in the decades ahead.
What do you think? Does easing compliance for Indian businesses under the 2023 amendment strengthen biodiversity governance, or does it risk diluting the rights of the communities the law was meant to protect? And in rapidly growing cities, what role should Biodiversity Management Committees play in conserving urban green spaces and local species?
References
- https://www.cbd.int/convention
- https://www.cbd.int/abs
- https://nbaindia.org/content/16/14/1/bmc.html
- https://en.wikipedia.org/wiki/National_Biodiversity_Authority
- https://indiankanoon.org/doc/548841/
- https://en.wikipedia.org/wiki/Traditional_Knowledge_Digital_Library
- https://egazette.gov.in/WritereadData/2023/247815.pdf
- https://ceerapub.nls.ac.in/note-on-biological-diversity-amendment-act-2023/
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