Union Minister of Health and Family Welfare Mansukh Mandaviya has launched the ₹5,000 crore Promotion of Research and Innovation in Pharma and MedTech (PRIP) scheme. This initiative seeks to shift India’s pharma and medtech industry from a cost-based model to an innovation-driven one.
Strengthening Research Infrastructure in a Growing Industry
India, the world’s third-largest pharmaceutical industry by volume, currently has a market size of around $50 billion. The PRIP scheme aims to strengthen research infrastructure and enhance the country’s capabilities in pharma and medtech. Mandaviya emphasized that India needs a strong and dynamic research environment to become a global leader in this sector.
Need for Higher R&D Investment
Highlighting the gap in research spending, Mandaviya noted that multinational companies allocate 20-22% of their profits to R&D, while Indian companies invest only about 10%. In 2021, the top 10 Indian pharma firms spent around 7.2% of their sales on R&D. The government aims to increase this expenditure and encourage further innovation in the sector.
Industry Leaders Welcome PRIP Initiative
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), called the PRIP scheme a significant milestone. He believes it will motivate pharmaceutical companies and create a robust R&D ecosystem. Jain emphasized that PRIP marks a shift from “Make in India” to “Make and Discover in India.”
Global Market Growth and India’s Potential
The global medical devices market is expected to expand from $455.34 billion in 2021 to $657.98 billion by 2028, growing at a compound annual growth rate (CAGR) of 5.4%. However, India currently holds only a 1.5% share in the global medical devices market despite contributing 8% of the global MedTech R&D workforce. The PRIP scheme could enhance India’s role in this fast-growing industry.
Pharma Exports on the Rise
According to the Pharmaceutical Exports Promotion Council of India, Indian pharma exports are projected to reach $24 billion in FY24, up from $23 billion in FY23. This steady growth reflects the country’s increasing presence in the global pharmaceutical sector.
Key Components of the PRIP Scheme
The PRIP scheme includes two major components:
*Infrastructure Development: The government will establish ‘centres of excellence’ at seven campuses of the National Institutes of Pharmaceutical Education and Research (NIPER) at an estimated cost of Rs 700 crore over five years.
*Financial Support for R&D: The scheme will provide ₹4,250 crore in financial assistance to large industries, MSMEs, and startups. These funds will support collaborative research with academic institutions and in-house R&D projects.
Encouraging Innovation in Startups and MSMEs
Previously, strict regulations restricted smaller players from conducting medical research. However, the PRIP scheme now enables startups and MSMEs to engage in medical research and device development. Mandaviya highlighted this as a transformative step that opens doors for innovation in the pharma and medtech sectors.
Industry Optimistic About the Future
Pavan Choudary, Chairman of the Medical Technology Association of India, expressed optimism about the scheme. He believes it will accelerate the growth of India’s innovative MedTech sector and leverage the country’s existing strengths in R&D.
As reported by business-standard.com, with the PRIP scheme, India is positioning itself as a global leader in pharmaceutical and medtech innovation, fostering research excellence and driving economic growth in these crucial industries.
