The Indian government has unveiled a ₹5,000 crore (around $600 million) initiative aimed at promoting research and innovation in the pharma and medical technology sectors. Spanning FY 2023-24 to FY 2029-30, the scheme seeks to shift India’s life sciences economy from a volume-driven, cost-based generic manufacturing hub to a sector focused on innovation and global competitiveness.
India’s pharmaceutical sector largely focuses on generic drug manufacturing, but its share in the global market stands at just 3.4%. Globally, innovative drugs account for roughly two-thirds of the pharmaceutical market, presenting a potential $3.2 trillion opportunity by 2030.
Despite being a major supplier of affordable medicines, India’s R&D spend remains low, at around $3 billion, compared with $50–60 billion in the USA and $15–20 billion in China. Similarly, the medical devices industry in India is underdeveloped, holding just 1.5% of the global market while importing 70–80% of its requirements. The scheme aims to address these structural challenges by incentivising domestic innovation.
The Scheme for Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) is now open for registration, with applications accepted until November 10, 2025. The scheme has two main components:
Projects involving reputable government research institutions and demonstrating potential for product development and commercialisation will be prioritised. The scheme also encourages licensing of intellectual property, shared use of research infrastructure, and joint development of technologies.
The Centre maintains a ‘Benefit-Share’ mechanism in commercial outcomes. Companies must repay financial assistance through royalties, tiered payouts, or equity, depending on project stage and total funding received.
Read more:USFDA Speeds Up Approval for Generics Made in the US – Impact on Indian Manufacturers
Implementation, monitoring, and fund disbursement will be managed by a dedicated Project Management Agency, overseen by an Empowered Committee chaired by the CEO of NITI Aayog. A Project Appraisal Committee and a Technical Committee with experts from government, academia, and industry will provide additional oversight.
The PRIP scheme marks a structured effort to strengthen India’s innovation capacity in pharma and MedTech, aligning domestic research with global opportunities.
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Published on: Oct 7, 2025, 1:27 PM IST
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