Promotion of Research & Innovation in Pharma MedTech Sector (PRIP) scheme, aims to strengthen the country's capabilities in drug discovery, medical technology (medtech), and stem cell therapy
India is making a strategic shift towards pharmaceutical innovation with the introduction of a Rs 5,000 crore research and development (R&D) fund. This initiative, launched under the Promotion of Research & Innovation in Pharma MedTech Sector (PRIP) scheme, aims to strengthen the country's capabilities in drug discovery, medical technology (medtech), and stem cell therapy. With Expressions of Interest (EOI) set to open in March and bid submissions likely in April, the scheme is expected to drive cutting-edge research and reduce India's reliance on imported pharmaceutical technologies.
A Transformative Step for Pharma and Medtech
The PRIP scheme is designed to bolster India's domestic innovation ecosystem and position the country as a global leader in high-value pharma segments. Dr Saarthak Bakshi, Healthcare Entrepreneur and CEO of RISAA IVF, believes that this funding initiative will significantly benefit the pharmaceutical and medtech sectors.
He stated, “By injecting Rs 5,000 crore into R&D, it will drive innovation in drug discovery, medical technology, and stem cell therapy. This initiative will not only enhance domestic capabilities but also position India as a global leader in cutting-edge healthcare solutions."
One of the scheme’s key focus areas is strengthening the pharma sector’s R&D capabilities. India’s pharmaceutical industry, which currently holds a 3.4 per cent share of the global market and is projected to reach $108 billion by 2030, lags in R&D investments compared to global leaders. Indian companies spend around $3 billion annually on R&D, far below the $50-60 billion spent in the US and $15-20 billion in China. The PRIP fund aims to bridge this gap by encouraging breakthrough innovations, accelerating clinical research, and improving drug quality.
Reducing Dependency on China
India's pharmaceutical industry heavily relies on China for Active Pharmaceutical Ingredients (APIs) and intermediates, making supply chains vulnerable to disruptions. The new funding initiative is expected to address this challenge. Dr Bakshi highlighted, “This initiative is a step toward reducing our dependence on China for key raw materials. By strengthening domestic R&D, India can develop alternative sources for APIs, ensuring supply chain resilience.”
API self-sufficiency has long been a priority for India, and this scheme aligns with that goal. “With increased R&D investment, India can boost its API manufacturing capabilities, reduce import reliance, and establish a strong ecosystem for bulk drug production, ultimately making the country a global pharmaceutical powerhouse,” he added.
A Boost for the Medtech Sector?
While the PRIP scheme is expected to benefit the pharmaceutical industry significantly, concerns have emerged regarding the allocation of funds to the medical device sector. The medtech industry has been growing rapidly, with innovations in AI-driven diagnostics, wearable health tech, and precision medicine on the rise.
Dr Bakshi believes that with enhanced R&D funding, the industry will witness a surge in indigenous innovation, leading to cost-effective, high-quality medical devices tailored for both domestic and global markets.
However, Rajiv Nath, Forum Coordinator of AiMeD (Association of Indian Medical Device Industry), has expressed concerns over the scheme’s limited focus on the medical device sector. “The government has given very little weightage to the medical device industry, and the scheme is largely focused on the pharmaceutical sector. We will discuss the matter with the government and will be seeking amendments, or the scheme will remain on paper only,” he warns.
Ensuring Efficient Fund Allocation and Industry-Academia Collaboration
The effective utilisation of the Rs 5,000 crore fund will be crucial for its success. To maximise its impact, Dr Bakshi suggests that the government will likely implement a structured framework involving public-private partnerships, expert advisory panels, and milestone-based funding. He stated, “Transparency and accountability will be crucial. Regular audits, industry feedback, and performance assessments will ensure that the funds are utilized effectively to drive meaningful innovation.”
Furthermore, the scheme is expected to foster stronger industry-academia collaborations. Dr Bakshi expressed, “This initiative will bridge the gap between research and commercialisation. Universities and research institutes will collaborate with pharma and medtech firms on cutting-edge projects, leading to patentable innovations. Such collaborations will also create a robust talent pipeline, ensuring sustained growth and a competitive edge for India in the global healthcare landscape.”
A Step in the Right Direction
The PRIP scheme is a significant step toward transforming India into a hub for high-value, research-driven healthcare solutions. By promoting advanced research, reducing import dependencies, and encouraging industry-academia collaborations, the initiative has the potential to revolutionise India's pharma and medtech sectors. However, concerns regarding the medical device industry’s representation in the scheme must be addressed to ensure a balanced and impactful allocation of funds. If executed efficiently, this initiative could mark a new era of innovation and self-reliance for India’s healthcare sector.
