In pursuance to the Convention on Biological Diversity (CBD), India had enacted the Biological Diversity Act in 2002 following a widespread consultative process over a period of eight years. The Biological Rules were notified thereafter in 2004.The Act gives effect to the provision of the CBD. It also addresses access to biological resources and associated traditional knowledge to ensure equitable sharing of benefits arising out of their use to the country and its people, thereby contributing to achieving the third objective of the CBD. India is one of the first few countries to have enacted such legislation. The Act is to be implemented through a three-tiered institutional structure: National Biodiversity Authority (NBA), State Biodiversity Boards (SBBs) and Biodiversity Management Committees (BMCs).

Main Provisions

The NBA deals with all matters relating to requests for access by foreign individuals, institutions or companies, and transfer of results of research to any foreigner. While granting approvals, NBA imposes conditions which secure equitable sharing of benefits arising out of the use of biological resources and associated knowledge. These benefits could include monetary gains; grant of joint ownership of Intellectual property Rights (IPRs), transfer of technology, association of Indian scientists in research and development, setting up of venture capital funds etc. Further, NBA’s approval is also required before seeking any IPR based on biological material and associated knowledge obtained from India. The NBA also has power to oppose grant of IPRs in any other country on biological resources or associated knowledge obtained or derived from India. 

The State Biodiversity Boards (SBBs), constituted by the State Governments, deal with all matters relating to access by Indians for commercial purposes. The Indian industry is required to provide prior intimation to the concerned SBB about the use of biological resources. The SBB has the power to restrict any such activity which violates the objectives of conservation, sustainable use and equitable sharing of benefits. 

The institutions of self- government are required to set up Biodiversity Management Committees (BMCs) in their respective areas for conservation, sustainable use, documentation of biodiversity and chronicling of knowledge relating to biodiversity. The NBA and SBBs are required to consult the concerned BMCs on matters relating to use op biological resources and associated knowledge within their respective jurisdictions. This mandatory consultation of BMCs by NBA and SBBs ensures formulization of prior informed consent by the communities through involvement of BMCs in decision making process. The BMCs may also levy collection fee for collecting biological resource from their respective areas. 

The legislation provides for exemptions : to local people and community for free access to use biological resources within India; to growers and cultivators of biodiversity , and vaids and hakims to use biological resources; through notification by Central Government of normally traded commodities as not to adversely affect trade of these items; for collaborative research through government sponsored or government approved institutions subject to overall guidelines and approval of the Central Government; and to value added products.