Examining the Biological Diversity Amendment Act of 2023

In December 2021, Union Minister Bhupender Yadav introduced the Biological Diversity (Amendment) Bill, 2023, marking a significant step towards modernising India's biodiversity governance. Operationalised through the Biological Diversity (Access to Biological Resources and Knowledge Associated thereto and Fair and Equitable Sharing of Benefits) Regulations, 2025, the amendments aim to address contemporary challenges while ensuring sustainable use of biological resources.

Key Amendments and Current Status

The amendments bring about several transformative changes in India's biodiversity conservation and equitable benefit-sharing mechanisms. Some of the key amendments include:

Decriminalization of Offenses: The amendment replaces imprisonment penalties with monetary fines for most violations, aiming to encourage compliance instead of punitive deterrence.
Inclusion of Digital Sequence Information (DSI): Explicitly bringing DSI under access and benefit-sharing (ABS) obligations addresses the use of digital genetic data that was previously unregulated.
Exemption for Traditional Knowledge Practitioners: Codified traditional knowledge holders are exempted from ABS obligations, recognizing and protecting indigenous rights and knowledge within local communities.
Simplified Compliance for Indian Entities: Startups, MSMEs, and AYUSH enterprises face reduced procedural burdens when accessing biological resources, promoting innovation and traditional medicine sectors with easier regulatory pathways.
Strengthening Biodiversity Management Committees (BMCs): BMCs have enhanced roles in negotiating benefit-sharing agreements and representing community interests, empowering grassroots participation in biodiversity governance.
Expanded Definitions: The amendment broadens the scope of biological resources and associated knowledge to include contemporary applications like value-added products and digital knowledge, updating the law’s relevance to modern biotechnologies.
Time-Bound Procedures: The regulations introduce clear timelines and Standard Operating Procedures (SOPs) for granting access to biological resources, improving efficiency and transparency in ABS processes.
Extension to Marine Zones: The Act’s applicability has been extended to India’s exclusive economic zone, continental shelf, and contiguous zone, covering marine biodiversity under its regulatory framework.
Streamlined Intellectual Property Rights (IPR) Process: Clarifications on IPR disclosure timelines and provisions for conditional ABS approvals have been introduced, facilitating smoother patent and innovation processes while ensuring benefit-sharing.

The amendments emphasize fair and equitable benefit-sharing aligned with international CBD and Nagoya Protocol commitments, ensuring benefits from biological resource utilization—both physical and digital—reach indigenous communities and resource providers. By empowering local committees (BMCs) and simplifying compliance for domestic entities, the regulatory framework fosters inclusive and participatory conservation models tied closely to community welfare and sustainable use.

However, concerns remain about enforcement limitations related to biodiversity conservation and damage prevention, as existing legislation places more focus on access/benefit-sharing rather than proactive enforcement for biodiversity loss or damage. The explicit inclusion of digital sequence information marks a critical modernization, addressing contemporary biotechnological developments and closing previous regulatory gaps that could undermine benefit-sharing from genetic resource utilization.

Simplified procedural norms and clear timelines promote regularized and transparent access to biological resources, balancing conservation goals with the needs of innovation-oriented sectors like AYUSH, MSMEs, and startups.

Challenges Ahead

The challenge lies in balancing economic development with biodiversity conservation, ensuring sustainable practices, and upholding the principles of equity and justice. The amendments aim to streamline processes, encourage medicinal plant cultivation, and simplify regulatory requirements for accessing biodiversity resources. One of the contentious aspects of the bill is the decriminalisation of offences under the Biological Diversity Act, 2002. The exemption of certain users, including practitioners of Indian systems of medicine, from benefit-sharing obligations raises apprehensions about the equitable distribution of benefits among local communities and traditional knowledge holders.

The alignment of definitions with existing laws, such as the Companies Act, 2013, aims to regulate access by foreign-controlled companies to biological resources. The bill aims to promote transparent decision-making processes and meaningful stakeholder engagement in biodiversity conservation initiatives. The Act establishes a three-tiered mechanism for biodiversity management: National Biodiversity Authority (NBA), State Biodiversity Boards (SBBs), and Biodiversity Management Committees (BMCs).

The Biological Diversity (Amendment) Bill, 2023, also seeks to promote the sustainable utilisation of medicinal plants and traditional knowledge associated with Indian healthcare systems. The bill was referred to a joint committee for further examination and review due to concerns about prioritizing commercial interests over biodiversity conservation. The joint committee submitted its report to Parliament on August 2, 2022, with recommendations to address stakeholder concerns.

Environmentalists and conservationists have voiced concerns about the potential exploitation of biodiversity resources under the amended provisions. The bill, however, represents a significant stride towards modernising India's biodiversity governance, balancing economic development with conservation, and ensuring equitable benefit-sharing. While the amendments promote equitable benefit-sharing and sustainable use, ongoing challenges in enforcement and biodiversity protection implementation remain to be fully addressed.

The Biological Diversity (Amendment) Bill, 2023, supports the rights of traditional knowledge holders by exempting them from Access and Benefit-Sharing (ABS) obligations, aiming to protect indigenous rights.
The amendments' approach towards marine zones broadens India's regulatory framework to cover marine biodiversity, extending its protection to exclusive economic zones, continental shelf, and contiguous zones.
The strengthening of Biodiversity Management Committees (BMCs) under the amendments aims to make a significant impact on promoting grassroots participation in biodiversity governance and ensuring community interests are represented.
Innovation in India's sectors like AYUSH, MSMEs, and startups receives a boost due to simplified compliance procedures for accessing biological resources, thereby fostering the growth of these industries.
The explicit inclusion of Digital Sequence Information (DSI) in the amendments serves as a milestone in modernizing the law, addressing the absence of regulatory frameworks for digital genetic data.
The amendments' efforts to strengthen the policy-and-legislation framework surrounding climate-change and environmental-science have a potential positive impact on combating global issues related to climate change.
The alignment of the Biological Diversity (Amendment) Act with finance and business sectors through streamlined intellectual property rights (IPR) processes and simplified regulatory requirements for accessing biodiversity resources could lead to smoother patent and innovation processes within these sectors.