PRIP, or the Promotion of Research and Innovation in Pharma MedTech Sector, promises to make it easier to submit applications to develop novel technologies in medicine, including medical devices and drugs for communicable, non-communicable diseases and rare disease.
The government is concerned about the tiny levels of domestic R&D spending, compared with many other nations, despite India being a global leader in generic drug production.
While the US and China spend $60 billion and $20 billion on pharmaceutical R&D respectively, India’s expenditure is only around $3 billion.
Bridging a gap
PRIP aims to bridge this gap and foster a culture of research and innovation in the pharma and medtech industry.
The scheme has two main components. First, strengthening research infrastructure: This involves setting up Centres of Excellence (CoEs) in the seven existing National Institutes of Pharmaceutical Education & Research (NIPERs).
Second, Promoting Research in Pharma & MedTech: This component offers direct financial assistance to companies and projects for both in-house R&D and academic collaborations. It covers six priority areas, including drug discovery and development, medical devices, stem cell therapy, medicines for rare diseases and treatment for drug-resistant patients.
“With the PRIP portal now live, the government is making it simple for pharma companies, medtech firms, and even startups to register and elevate their research and development capabilities,” explained an official.
As planned under the scheme, bigger companies can seek funding of up to ₹125 crore while startups can secure up to ₹1 crore over a period of five years, based on their milestones, the official said.
India’s pharmaceutical market is a global force, valued at $50 billion. While domestic consumption stands at $23.5 billion, exports contribute a significant $26.5 billion. India is the world’s third-largest pharmaceutical market by volume and 14th by value of production.
Over half its exports reach highly developed markets like the US, EU, and Japan, which have a high threshold on quality.
Sheetal Arora, promoter and CEO of Mankind Pharma, emphasized the transformative potential of the PRIP scheme.
Pharma game changer
“The new PRIP portal is a game-changer for Indian pharma. This ₹5,000-crore investment is exactly the boost we need as we’re on the verge of massive growth. India already leads the world in generic medicines, providing 20% of the global supply. But PRIP helps us shift towards innovation, potentially bringing in another ₹17,000 crore for R&D by FY28. This will truly sharpen our competitive edge.
The timing couldn’t be better. With many major drugs losing patent protection by 2030, companies that invest in new molecules and top-tier research now will be future leaders. What’s most exciting is that PRIP supports both innovation and affordable healthcare.”
Arora added that PRIP supports both innovation and affordable healthcare. “This perfectly fits India’s goal of being a global innovation hub while also making medicines accessible worldwide. PRIP isn’t just about money; it’s about empowering Indian pharma to build a strong, self-reliant future where innovation benefits everyone,” she said.
The Indian Drug Manufacturers Association is actively encouraging its members to explore this opportunity, seeing the PRIP scheme as a significant leap forward for research and development in the country.
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