Indian Govt Rolls Out INR 5,000 Cr Scheme for Pharma & MedTech Innovation
The scheme, first announced by Finance Minister Nirmala Sitharaman during the 2023 Union Budget, is designed to promote research and innovation in the pharmaceutical and medical technology sectors.
The Department of Pharmaceuticals (DoP), under the Ministry of Chemicals and Fertilizers, rolled out a 32-page Expression of Interest (EoI) document in March, inviting manufacturers to participate in the “Promotion of Research and Innovation in Pharma MedTech sector (PRIP)” scheme.
The scheme, first announced by Finance Minister Nirmala Sitharaman during the 2023 Union Budget, is designed to promote research and innovation in the pharmaceutical and medical technology sectors. It seeks to enable drug discovery, development, and commercialization, drive innovation in medical devices, and promote industry-academia collaboration.
The initiative aims to transform India into “a global powerhouse for R&D in the Pharma MedTech sector." It features six priority areas and three funding categories. It is supported by a financial outlay of INR 5,000 Cr, of which INR 4,250 Cr is dedicated to enhancing investments in research and development.
The EoI document highlights the opportunity for participants “to co-shape India’s journey towards becoming an R&D innovation hub.” It outlines funding across six priority areas - research and development of new chemical entities, biological entities, and phyto-pharmaceuticals; complex generics and biosimilars; precision medicine or targeted innovative therapeutics; medical devices; orphan drugs for rare diseases; and drug development to combat antimicrobial resistance (AMR).
Interested entities, including proprietary firms, partnerships, startups, or companies registered in India, are invited to submit funding proposals within three categories.
Under the first category, companies can receive “funding up to 35 percent of total project cost or INR 125 crore (whichever is less).” Eligibility requires pharmaceutical or MedTech companies with annual revenue exceeding INR 1,000 Cr for pharma or INR 250 Cr for MedTech and collaboration with a government research institution. Projects must fall under priority areas at Technology Readiness Levels (TRL) ranging from 1 to 9.
The second funding category offers “up to 35 percent of total project cost or INR 100 crore (whichever is less)” for entities working on R&D projects at TRL 5 or 6.
The third category provides funding “up to INR 1 crore per project” for startups and MSMEs working on priority projects at TRL 1 through TRL 4.
TRL, a method for assessing technological maturity, spans nine levels, starting from ideation (TRL 1), progressing through stages such as basic research, proof of concept (TRL 4), simulated environment testing (TRL 5), prototype demonstration, real-world testing, refinement, and culminating in full deployment (TRL 9).
The PRIP scheme represents a significant step toward reducing reliance on imports and addressing critical healthcare challenges through innovation in the Pharma MedTech sector.
