India expects nearly ₹17,000 crore in pharma research and development (R&D) investments by FY28, focusing on cancer research, lifestyle disease prevention, medical technology, and niche segments like orphan drugs and new chemical development informed Amit Agrawal, Secretary of the Department of Pharmaceuticals.
To drive this growth, the government has launched the ₹5,000-crore Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP). The first disbursements under this initiative are expected by the end of the year.
Funding Approach: Equity and Milestone-Based Investments
The government plans to either acquire equity in selected projects or provide funding based on milestone achievements. The authorities released the Expression of Interest (EoI) under the scheme with an initial deadline of April 7 for stakeholder feedback. Authorities aim to finalize project selections by late April or early May, with the first funding disbursements expected within six months.
“The PRIP Scheme is designed to establish India as a global R&D powerhouse in the Pharma MedTech sector,” said Agrawal. Of the total ₹5,000 crore outlay, ₹4,250 crore will directly support investments in the sector’s R&D ecosystem. The government expects the scheme to attract ₹17,000 crore in investments. It will also support the launch of at least 30 new products or technologies by FY28. To create further engagement, the government has planned nationwide roadshows and stakeholder meetings.
Establishing Centers of Excellence
The first component, with a ₹700 crore allocation, supports setting up Centers of Excellence at National Institutes of Pharmaceutical Education and Research (NIPERs). Seven institutes across India—in Mohali, Ahmedabad, Hajipur, Hyderabad, Kolkata, Guwahati, and Rae Bareli—are already operational, focusing on specialized areas such as antiviral and antibacterial drug development, biotherapeutics, bulk drug R&D, and novel drug discovery.
Promoting Research and Innovation
The second component, further divided into three categories, aims to advance pharmaceutical and med-tech research. It focuses on six priority areas:
- New chemical and biological entities, including phyto-pharmaceuticals
- Complex generics and biosimilars
- Precision medicine, including stem cell and gene therapies and biomarkers
- Orphan drugs for rare diseases
- Drug development for antimicrobial resistance
- Advanced medical technology and innovation
Funding Categories under Component B
- Collaborations Between Pharma Companies and Academia: Nine projects will be selected, with a maximum of 35% government funding or up to ₹125 crore per project.
- Market-Ready Innovations: Thirty projects will receive a maximum of 35% government support or ₹100 crore per project to help bring new products to the market.
- Support for Startups and MSMEs: Research-focused companies, MSMEs, and startups will receive ₹1 crore each for approximately 125 projects, targeting early-stage R&D.
The funding will span five years and follow a milestone-based approach. “We may consider extending timelines if necessary,” Agrawal added.
Transforming India into a Global R&D Hub
With structured funding and targeted investments, the PRIP Scheme aims to position India as a leader in pharmaceutical innovation. As reported by thehindubusinessline.com, the government aims to boost medical advancements by fostering academia-industry collaboration. This initiative also seeks to strengthen India’s global footprint in pharma R&D.
