The Biological Diversity Act, 2002 is the Indian law that regulates access to the country’s biological resources and associated traditional knowledge, and that requires the benefits of using them to be shared fairly with the people who conserve them. Parliament passed the Act so that India could meet its obligations under the United Nations Convention on Biological Diversity (CBD), and it created a three-tier institutional structure that runs from the national level down to the village.
The Biological Diversity Act has three stated objectives: the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of benefits arising from the use of biological resources and knowledge. It was substantially amended in 2023, a change that eased compliance for the AYUSH sector and for domestic industry. Last updated: 8 October 2026.
| Attribute | Detail |
|---|---|
| Full name | The Biological Diversity Act, 2002 |
| Enacted | 2002 (Presidential assent in early 2003); Biological Diversity Rules framed in 2004 |
| Parent treaty | UN Convention on Biological Diversity (adopted at the 1992 Rio Earth Summit) |
| Administering ministry | Ministry of Environment, Forest and Climate Change (MoEFCC) |
| National body | National Biodiversity Authority (NBA), headquartered in Chennai |
| State bodies | State Biodiversity Boards (SBBs) |
| Local bodies | Biodiversity Management Committees (BMCs) with People’s Biodiversity Registers (PBRs) |
| Major amendment | Biological Diversity (Amendment) Act, 2023 |
Key Takeaways
- The Biological Diversity Act, 2002 is India’s primary statute for regulating access to biological resources and sharing the resulting benefits.
- The Act implements the UN Convention on Biological Diversity, which India joined in the early 1990s, and later supports the Nagoya Protocol on access and benefit sharing.
- The three objectives of the Biological Diversity Act are conservation, sustainable use of biological resources, and fair and equitable benefit sharing.
- India’s biodiversity governance has three tiers: the National Biodiversity Authority in Chennai, State Biodiversity Boards, and local Biodiversity Management Committees.
- Biodiversity Management Committees prepare People’s Biodiversity Registers, which document local biological resources and the traditional knowledge attached to them.
- The Biological Diversity (Amendment) Act, 2023 eased rules for practitioners of AYUSH systems and for domestic industry while keeping approval requirements for foreign entities.
What is the Biological Diversity Act?
The Biological Diversity Act is a central law, enacted in 2002, that governs how biological resources found in India may be accessed, used and commercialised, and how the gains from that use are shared. Biological resources under the Act include plants, animals and micro-organisms, their genetic material and by-products, but exclude human genetic material.
The statute is both a conservation law and an access-regulation law. It does not create protected areas, which fall under the Wildlife (Protection) Act, 1972. Instead, the Biological Diversity Act deals with a different problem: preventing biopiracy, the unauthorised commercial exploitation of a country’s genetic resources and community knowledge without compensation to those who preserved them.
The law applies to the whole of India and reaches Indian citizens, companies and institutions as well as foreign persons who seek Indian biological material or related knowledge.
Why was the Biological Diversity Act enacted?
The Biological Diversity Act was enacted because India, as a party to the Convention on Biological Diversity, needed a domestic law to give effect to the treaty’s principles on sovereignty over biological resources and benefit sharing. The Convention was opened for signature at the 1992 Earth Summit in Rio de Janeiro and entered into force in December 1993.
The Convention recognises that each country has sovereign rights over the biological resources within its territory. It also obliges member countries to respect and preserve the knowledge, innovations and practices of local and indigenous communities. India, one of the world’s recognised mega-diverse countries, had strong reasons to protect its genetic wealth. Public controversies in the 1990s over patents based on Indian plant products, such as turmeric and neem, sharpened the concern that traditional knowledge could be appropriated abroad.
The Act therefore turned the treaty’s principles into enforceable national rules, placing a clear legal framework between foreign or commercial users and India’s biological heritage.
What are the three objectives of the Biological Diversity Act?
The three objectives of the Biological Diversity Act are conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of the benefits from using biological resources and associated knowledge. These mirror the three goals of the Convention on Biological Diversity.
- Conservation: protecting species, habitats, ecosystems and genetic variety, including through the notification of heritage sites and threatened species.
- Sustainable use: ensuring that the extraction and commercial use of biological resources does not deplete them for future generations.
- Benefit sharing: making sure that profits and other gains reach the local communities and knowledge holders who conserve and nurture the resources.
The third objective is the most distinctive feature of the Biological Diversity Act, because it links commercial value directly to community welfare.
How is the Biological Diversity Act structured?
The Biological Diversity Act establishes a three-tier structure made up of the National Biodiversity Authority at the national level, State Biodiversity Boards at the state level, and Biodiversity Management Committees at the level of local self-government. This layered design was intended to bring decision-making close to the communities whose resources are involved.
| Tier | Body | Main role |
|---|---|---|
| National | National Biodiversity Authority (NBA), Chennai | Regulates access by foreign entities, approves intellectual property claims based on Indian resources, advises the Central Government |
| State | State Biodiversity Boards (SBBs) | Regulate commercial use by Indian citizens and entities, advise state governments, notify heritage sites with state approval |
| Local | Biodiversity Management Committees (BMCs) | Promote conservation, document local resources in People’s Biodiversity Registers, advise on access and benefit sharing |
What does the National Biodiversity Authority do?
The National Biodiversity Authority (NBA) is the statutory, autonomous body set up under the Biological Diversity Act, with its headquarters in Chennai, Tamil Nadu, to regulate access to India’s biological resources at the national level. It began functioning in 2003, soon after the Act came into force.
The NBA performs several core functions:
- Granting approval to foreign nationals, non-resident Indians and foreign-controlled companies who wish to obtain biological resources or related knowledge from India.
- Examining applications for intellectual property rights, such as patents, that are based on research using Indian biological resources.
- Determining the terms of benefit sharing, including monetary and non-monetary benefits.
- Advising the Central Government on conservation, sustainable use and the notification of species.
- Taking steps to oppose the grant of IPRs in other countries that rely on Indian resources or knowledge.
The Authority is chaired by an expert in conservation and sustainable use and includes representatives of central ministries and non-official members, reflecting the Act’s attempt to combine scientific, administrative and community perspectives.
What are State Biodiversity Boards?
State Biodiversity Boards (SBBs) are statutory bodies established by state governments under the Biological Diversity Act to regulate the use of biological resources within each state. They are the second tier of the structure and sit between the National Biodiversity Authority and the local committees.
An SBB handles requests from Indian citizens, companies and organisations that want to obtain biological resources found in the state for commercial use. It also advises the state government on matters of conservation and sustainable use, and it works with local bodies in preparing the biodiversity documentation of the state. Under the Act, a state government may, in consultation with local bodies, notify areas of particular biodiversity importance as Biodiversity Heritage Sites. The first such site notified in India was the Nallur Tamarind Grove in Karnataka, in 2007.
What are Biodiversity Management Committees and People’s Biodiversity Registers?
A Biodiversity Management Committee (BMC) is a local body that every local self-government institution, such as a panchayat or municipality, is required to set up under the Biological Diversity Act to promote conservation, sustainable use and documentation of biological diversity in its area. BMCs are the foundation of the three-tier system.
The main task of a BMC is to prepare a People’s Biodiversity Register (PBR) in consultation with local people. A PBR is a detailed record of the local biological resources, their uses, and the traditional knowledge held by the community about them. Typical entries cover:
- Wild and cultivated plants, local crop varieties and livestock breeds.
- Medicinal plants and the community’s knowledge of how they are used.
- Habitats, sacred groves, water bodies and other ecologically important sites.
- Seasonal patterns of harvest and use.
The register serves as a community-owned evidence base. If a company later tries to patent a product derived from local knowledge, the documented record can help show the origin of that knowledge. BMCs are also entitled to be consulted by the State Biodiversity Board on matters involving local resources and may collect fees for access to biological resources in their area.
How does access and benefit sharing work under the Act?
Access and benefit sharing (ABS) under the Biological Diversity Act is the system by which a person who wants to obtain Indian biological resources or associated knowledge for research, commercial use or intellectual property must obtain permission and share the resulting benefits with the providers. The rules differ by type of user.
Who needs approval?
- Foreign nationals, non-resident Indians and foreign-controlled companies: they must obtain prior approval from the National Biodiversity Authority before accessing biological resources or knowledge. This is one of the central provisions of the Act.
- Indian citizens and Indian companies: they must generally notify the relevant State Biodiversity Board before using biological resources for commercial purposes.
- Applicants for intellectual property rights: anyone who seeks IPR over an invention based on research using Indian biological resources must obtain NBA approval at the stage prescribed by the law.
- Transfer of research results: sharing results of research on Indian resources with foreign parties generally requires approval, with exceptions for collaborative projects authorised by the government.
How are benefits shared?
The Act allows benefits to take several forms. The monetary and non-monetary options typically include:
- A share of fees, royalties or profits from commercialisation.
- Joint ownership of intellectual property rights.
- Technology transfer and capacity-building for local institutions.
- Participation of Indian scientists in research.
- Payment into a fund to support conservation and community welfare.
The National Biodiversity Authority has issued guidelines that set out how benefit-sharing percentages are decided for different types of commercial use, and these were designed to be consistent with the Nagoya Protocol on Access and Benefit-sharing, which India ratified in 2012.
Who is exempt?
The Act exempts several categories, including local people and communities, and traditional healers such as vaids and hakims, when they use biological resources for their own livelihood or for local medicinal purposes. Normally traded commodities, and certain cultivated crops, are also treated differently from wild genetic resources.
What changed with the Biological Diversity (Amendment) Act, 2023?
The Biological Diversity (Amendment) Act, 2023 revised the original law to ease compliance for domestic users, particularly the AYUSH sector, while retaining oversight over foreign access. Parliament passed it in the 2023 monsoon session after it was examined by a Joint Committee.
The government explained that the amendment was intended to promote the use of Indian medicinal plants, encourage research and patent filing, and reduce the burden of compliance. The main changes can be summarised as follows:
| Area | Original position (2002 Act) | Effect of the 2023 amendment |
|---|---|---|
| AYUSH practitioners | Required to follow access and benefit-sharing rules | Registered AYUSH practitioners and users of codified traditional knowledge are exempted from benefit-sharing obligations |
| Codified traditional knowledge | Covered by access rules | Codified traditional knowledge, such as that in classical texts, is excluded from the Act’s access and benefit-sharing provisions |
| Cultivated medicinal plants | Treated similarly to wild resources | Cultivated medicinal plants are exempted |
| Penalties | Criminal penalties, including imprisonment, for many violations | Many offences decriminalised and replaced with monetary penalties |
| Research and IPR | Approval needed before applying for an IPR | Timing and stage of approval relaxed for domestic applicants |
| Foreign entities | Prior NBA approval required | Approval requirement for foreign-controlled entities retained |
| Value-added products | Ambiguous | Derivatives and value-added products defined and treated separately |
Supporters argued that the changes would make it easier for the Indian herbal and traditional medicine industries to operate and to bring more research into the country. Critics, including some environmental groups and community-rights advocates, raised concerns that the changes could weaken benefit sharing for local communities and reduce deterrence by removing criminal penalties. Both viewpoints form part of the continuing debate on how best to balance conservation and economic use.
How does the Biological Diversity Act relate to other laws and treaties?
The Biological Diversity Act works alongside other Indian environmental laws and international agreements, each covering a different aspect of nature protection. It complements rather than replaces them.
- Wildlife (Protection) Act, 1972: protects wild animals, plants and designated protected areas such as national parks and sanctuaries.
- Forest (Conservation) Act, 1980: regulates the diversion of forest land for non-forest uses.
- Protection of Plant Varieties and Farmers’ Rights Act, 2001: protects new plant varieties and recognises the rights of farmers who conserve and develop them.
- Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006: recognises community rights over forest resources, which overlaps with the community focus of BMCs.
- Nagoya Protocol (2010): an international supplementary agreement to the CBD on access and benefit sharing, which India ratified in 2012 and which the Act’s rules help to implement.
Together, these laws form India’s wider legal framework for biodiversity, with the Biological Diversity Act occupying the specific place of regulating access and ensuring fairness in how genetic resources are used.
What challenges does the Biological Diversity Act face?
The main challenges facing the Biological Diversity Act are uneven implementation at the local level, limited awareness among communities, and the difficulty of balancing conservation with industry needs. Observers have identified several recurring issues.
- Documentation gaps: preparing a high-quality People’s Biodiversity Register requires time, trained people and funds, and quality has varied between regions.
- Capacity of local bodies: many local committees need training to negotiate benefit-sharing terms and to understand their role.
- Compliance burden: industry groups have sometimes found procedures slow or unclear, which was one reason behind the 2023 amendment.
- Benefit flow: ensuring that funds actually reach the communities that conserve resources is an ongoing administrative task.
- Digital sequence information: advances in genetics raise new questions about how to treat data derived from biological material, an issue also under discussion in global CBD negotiations.
Bottom Line
The Biological Diversity Act, 2002 gives India a legal framework that links conservation with fairness, requiring those who profit from biological resources to share the gains with the communities that protect them. Its three-tier structure of the NBA, State Biodiversity Boards and Biodiversity Management Committees remains its defining feature, and the 2023 amendment shows the continuing effort to balance community rights, scientific research and the needs of the AYUSH and herbal industries.
Frequently Asked Questions
What is the Biological Diversity Act of India?
The Biological Diversity Act, 2002 is the Indian law that regulates access to biological resources and associated traditional knowledge and requires fair sharing of the resulting benefits. It was enacted to implement the UN Convention on Biological Diversity. The law is administered by the Ministry of Environment, Forest and Climate Change through a three-tier institutional structure.
What are the three objectives of the Biological Diversity Act?
The three objectives are conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of benefits from the use of biological resources. These are the same goals as those of the Convention on Biological Diversity. The benefit-sharing objective is the most distinctive part of the Indian law.
Where is the National Biodiversity Authority located?
The National Biodiversity Authority is headquartered in Chennai, Tamil Nadu. It is the statutory body that regulates access to Indian biological resources at the national level, mainly for foreign entities. It works with State Biodiversity Boards and local Biodiversity Management Committees.
What is a People’s Biodiversity Register?
A People’s Biodiversity Register is a community-prepared record of the biological resources and related traditional knowledge in a local area. It is created by a Biodiversity Management Committee in consultation with local people. The register helps protect community knowledge and can serve as evidence of its origin if someone claims intellectual property over it.
Who needs permission to use biological resources under the Act?
Foreign nationals, non-resident Indians and foreign-controlled companies need prior approval from the National Biodiversity Authority. Indian citizens and companies generally need to inform the relevant State Biodiversity Board before commercial use. Certain groups, such as local communities and traditional healers using resources for their own purposes, are exempt.
What did the 2023 amendment to the Biological Diversity Act change?
The Biological Diversity (Amendment) Act, 2023 eased compliance for registered AYUSH practitioners and users of codified traditional knowledge, and it decriminalised many offences by replacing imprisonment with monetary penalties. It retained approval requirements for foreign-controlled entities. Supporters say it promotes research and traditional medicine, while critics worry about weaker community benefit sharing.
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