On June 24, 2025, the Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, Government of India, launched a state-of-the-art online portal for the ₹5,000 crore Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme.
This landmark initiative is designed to revolutionize India’s pharmaceutical and medical technology sectors by fostering cutting-edge research, bridging the R&D investment gap, and reinforcing India’s position as a global leader in healthcare innovation.
The portal simplifies access to funding, enabling startups, MSMEs, and large firms to drive advancements in drug discovery, medical devices, and treatments for critical health challenges.
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PRIP Scheme: A Catalyst for Innovation
The PRIP scheme, notified via Gazette Notification No. 199 on August 17, 2023, allocates ₹5,000 crore to enhance India’s R&D ecosystem, with ₹4,250 crore dedicated to research projects and ₹700 crore for strengthening research infrastructure.
By addressing India’s low R&D spending—$3 billion compared to $60 billion by the US and $20 billion by China—the scheme aims to transform the country’s $50 billion pharma market from a generics-driven powerhouse to an innovation hub.
Key Objectives
- Strengthen Research Infrastructure: Establish Centres of Excellence (CoEs) at seven National Institutes of Pharmaceutical Education and Research (NIPERs) to support advanced research.
- Promote Innovation: Fund projects in six priority areas to drive breakthroughs in healthcare solutions.
- Foster Collaboration: Encourage industry-academia partnerships to accelerate innovation and commercialization.
- Enhance Self-Reliance: Reduce dependence on imported active pharmaceutical ingredients (APIs).
Priority Areas for Funding
The PRIP scheme supports R&D in six critical areas:
- New Chemical Entity, New Biological Entity, and Phyto-pharmaceuticals
- Complex Generics and Biosimilars
- Precision Medicine (Targeted Innovative Therapeutics, including stem cell and gene therapies)
- Medical Devices
- Orphan Drugs (for rare diseases)
- Drug Development for Antimicrobial Resistance (AMR)
For detailed descriptions, refer to Appendix I on the Department of Pharmaceuticals website.
Funding Categories
The scheme offers tailored financial assistance across three categories to support diverse organizations and project stages:
| Category | Funding Details | Eligibility Criteria | Technology Readiness Level (TRL) |
|---|---|---|---|
| B I | Up to 35% of project cost or ₹125 Cr (whichever is less) | – Pharma companies: Annual revenue ≥ ₹1,000 Cr – MedTech companies: Annual revenue ≥ ₹250 Cr – R&D expenditure: 3-5% (Pharma) or 1-3% (MedTech) of revenue in last 5 years – Collaboration with a Government Research Institution | TRL 1 to 9 |
| B II | Up to 35% of project cost or ₹100 Cr (whichever is less) | Entities working on R&D in priority areas | TRL 5 or 6 |
| B III | Up to ₹1 Cr per project | Startups and MSMEs working in priority areas | TRL 1 to 4 |
For TRL details, refer to Appendix III on the Department of Pharmaceuticals website.
India’s Pharma and MedTech Landscape
Current Status
- Global Leader in Generics: India supplies 20% of global generic medicines and 55-60% of UNICEF’s vaccine needs.
- Market Size: The pharma market is valued at $50 billion, with $26.5 billion in exports and $23.5 billion in domestic consumption in FY24.
- R&D Lag: India’s $3 billion R&D spend is significantly lower than global leaders, limiting breakthrough innovation.
Challenges
- Low R&D Investment: Hinders development of novel drugs and technologies.
- Import Dependence: Overreliance on China for APIs and raw materials.
- Global Competition: Need to meet high-quality standards in markets like the US, EU, and Japan.
Government Initiatives
- PRIP Scheme: ₹5,000 crore to boost R&D and infrastructure.
- PLI Schemes: ₹15,000 crore for pharmaceuticals and ₹3,420 crore for medical devices to enhance domestic production.
- Bulk Drug Parks: ₹3,000 crore for hubs in Gujarat, Himachal Pradesh, and Andhra Pradesh.
- SPI Scheme: ₹500 crore to upgrade labs for global competitiveness.
Industry Perspectives
Sheetal Arora, CEO of Mankind Pharma, hailed the PRIP scheme as a game-changer:
“The PRIP portal is a transformative step for Indian pharma. With ₹5,000 crore in funding, it’s a massive boost as we approach a period of exponential growth. PRIP supports both innovation and affordable healthcare, aligning with India’s goal to be a global innovation hub while ensuring accessible medicines worldwide. With major drugs losing patent protection by 2030, this scheme positions Indian companies to lead in new molecules and cutting-edge research.”
The Indian Drug Manufacturers Association (IDMA) is actively encouraging its members to leverage the PRIP scheme, recognizing it as a significant leap toward strengthening India’s R&D capabilities.
Strategic Importance
The PRIP scheme is poised to reshape India’s pharma and MedTech sectors by:
- Driving an estimated ₹17,000 crore in R&D investments by FY28.
- Positioning India as a global hub for high-value healthcare solutions.
- Balancing innovation with affordability to meet domestic and global healthcare needs.
How to Engage
While the PRIP portal is intended to streamline applications, it may currently be inaccessible. Stakeholders are advised to visit the Department of Pharmaceuticals website for updates or contact support-prip@pharma-dept.gov.in with the subject line: [Your Company Name] – [Category B I/ B II/ B III / Not currently eligible under any category] – PRIP EoI Query. Register on the Entity Locker Portal to prepare for applications.
Stay Connected
With disbursals expected to begin by December 2025, the PRIP scheme empowers stakeholders to drive groundbreaking innovations in India’s healthcare ecosystem. Stay updated via the Department of Pharmaceuticals and join the mission to make India a global leader in Pharma and MedTech innovation!
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