India Boosts Pharma Innovation with Rs 5,000 Crore R&D Fund Initiative

India is making a strategic bid for pharmaceutical innovation as it inaugurates a Rs 5,000 crore R&D fund under the Promotion of Research & Innovation in Pharma MedTech Sector (PRIP) programme.

It will boost drug discovery, medical technology (medtech), and stem cell research and cut reliance on imported pharmaceutical technologies. The Expression of Interest (EOI) is to open in March with bid submission following in April.

Dr Saarthak Bakshi, Healthcare Entrepreneur and CEO of RISAA IVF said, " 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."

He added, "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. 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."

India's pharmaceutical sector, although controlling 3.4% of the world market, falls behind in terms of R&D investment, allocating approximately $3 billion every year—much less than the US's $50-60 billion. The PRIP fund tries to fill this gap by encouraging high-end research and enhancing the quality of drugs.

Though the scheme is likely to spur pharmaceutical innovation, there are still worries about sufficient support for the fast-growing medtech industry. Successful implementation through public-private partnerships has the potential to turn India into a world leader in research-based healthcare.

Meanwhile, Rajiv Nath, Forum Coordinator of AiMeD (Association of Indian Medical Device Industry) said, "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."