2025-09-18

The Government of India is set to roll out the Promotion of Research and Innovation in Pharma MedTech (PRIP) scheme this month, with an ambitious financial outlay of INR 5,000 crore to strengthen research and innovation across the pharmaceutical and medical technology sectors.

Announced in August 2023, the scheme seeks to transform India from a cost-driven hub into an innovation-led powerhouse by enabling rapid drug discovery and commercialisation, advancing medical device innovation, and fostering stronger industry–academia partnerships.

Of the total allocation, INR 700 crore will be used to establish Centers of Excellence (CoEs) at seven National Institutes of Pharmaceutical Education & Research (NIPERs), while INR 4,250 crore will be directed towards accelerating investments in the R&D ecosystem.

The scheme will prioritise six key research areas:

•        New Chemical Entity, New Biological Entity, and Phyto-pharmaceuticals

•        Complex Generics and Biosimilars

•        Precision Medicine (Targeted Innovative Therapeutics)

•        Medical Devices

•        Orphan Drugs

•        Drug Development for Antimicrobial Resistance (AMR)

The PRIP scheme will support both Indian companies and subsidiaries of multinational firms incorporated in India, with each entity eligible for up to three projects. Funding will vary by category, ranging from 35% of project costs (up to INR 125 crore) for large-scale projects to INR 1 crore per project for smaller initiatives.

India’s MedTech Ambition

Speaking at the APACMed Medical Technology Forum (MTF) 2025 recently, Amit Agrawal, Secretary, Department of Pharmaceuticals, outlined India’s strategic vision to become a global leader in medical technology by 2047.

Agrawal stated that India is well-positioned to substantially increase its share in the global medical technology market by 2047, and this expansion will be driven by the scaling up of public healthcare programmes, rising disposable incomes, and broader access to medical services.

Agrawal also informed that three medical device parks are under construction, expected to be operational by early 2027. These facilities will provide shared infrastructure and specialised resources for manufacturing critical raw materials and components—such as medical-grade alloys, ceramics, polymers, glass, and packaging materials—aimed at reducing import dependence and improving ease of doing business for manufacturers.

Agrawal also underscored ongoing efforts to strengthen NIPER–industry collaboration, including the creation of a NIPER academia–industry coordination committee, industry–institute cells, industry representation on boards of studies, chair professorships and professors of practice, and local industry–institute partnership forums.

Highlighting the success of the Production Linked Incentive (PLI) Scheme for medical devices, which has already accelerated domestic manufacturing and attracted global investment, Agrawal reaffirmed the government’s commitment to positioning India as a key player across the global value chain—from innovation and design to manufacturing and exports.