India’s Pharma R&D Sector Set to Attract ₹17,000 Crore Investments by FY28
India’s pharmaceutical research and development sector is on the cusp of a groundbreaking transformation, with a projected influx of approximately ₹17,000 crore in investments by the fiscal year 2028. The ambitious initiative spearheading this momentum is the ₹5,000-crore Scheme for Promotion of Research & Innovation in the Pharma MedTech Sector (PRIP).
Amit Agrawal, Secretary of the Department of Pharmaceuticals under the Union Ministry of Chemicals & Fertilizers, revealed that this substantial investment will encompass crucial areas such as cancer research, lifestyle disease prevention, med-tech and device manufacturing, and specialized niches like orphan drugs and the development of novel chemicals. In a recent interview with businessline, Agrawal emphasized the monumental impact of this initiative on India’s global positioning as an R&D powerhouse within the pharmaceutical and medical technology domains.
The PRIP Scheme, with an overarching aim to bolster the R&D ecosystem, is slated to kickstart its disbursement process by the end of this year. Agrawal outlined the strategic approach that the government plans to undertake, including equity investments in selected projects or fund infusions with a milestone-driven framework.
Expressing the government’s commitment to fostering innovation in the pharma and med-tech sectors, Agrawal detailed the planned rollout of the Expression of Interest (EoI) under the PRIP Scheme. The deadline for submissions is set for April 7, with a keen focus on soliciting stakeholder feedback. By April-end to early-May, the selection of viable projects is expected to be finalized, paving the way for the first round of disbursals within a six-month timeframe.
Agrawal underscored the essence of the PRIP Scheme in catalyzing India’s evolution into a global hub for pharmaceutical and med-tech R&D. With a significant financial allocation of ₹5,000 crore, of which ₹4,250 crore is earmarked for amplifying investments in the R&D landscape, the scheme is poised to attract an additional ₹17,000 crore in R&D investments across priority sectors. Anticipating the launch of 30 groundbreaking products or technologies by the end of the five-year timeline culminating in FY28, Agrawal highlighted the transformative impact of this initiative.
### Driving Innovation Through Strategic Funding
The funding under the PRIP Scheme is structured into distinct components to ensure a comprehensive approach towards promoting research and innovation in the pharma and med-tech sectors. The initial component, allocated at ₹700 crore, has already been set in motion with the establishment of Centers of Excellence in NIPERs (National Institute of Pharmaceutical Education and Research). These centers, spread across seven key locations, encompass specialized areas like anti-viral and anti-bacterial drug development, medical devices, bio-therapeutics, and novel drug discovery, among others.
Component B of the funding mechanism is further delineated into three primary categories, each strategically targeting pivotal areas critical for advancing research and innovation in pharmaceuticals and med-tech. The first category focuses on established Indian pharmaceutical companies collaborating with academia, with funding earmarked for nine projects, offering a maximum government support of 35% or ₹125 crore for each, depending on the lower threshold.
In the second segment of Component B, which encompasses 30 projects aimed at advancing products to a commercial or marketable stage, a maximum support of 35% or ₹100 crore per project is envisaged. This category is tailored to cater to projects requiring higher levels of support to transition into viable market offerings.
The third category of Component B is dedicated to projects initiated by research-oriented companies, MSMEs, and start-ups, with funding allocated for the initial stages of development. Approximately 125 projects are slated to receive ₹1 crore each, with funding spanning a five-year timeline and linked to milestone achievements. Agrawal hinted at the possibility of timeline extensions if deemed necessary to nurture sustained innovation and growth within the sector.
The holistic funding structure under the PRIP Scheme is meticulously designed to invigorate India’s pharmaceutical and med-tech landscape, fostering a culture of innovation, collaboration, and transformative breakthroughs. As the nation propels towards a future brimming with cutting-edge advancements and pioneering discoveries, the impact of this initiative is poised to reverberate across global healthcare paradigms, reshaping the contours of pharmaceutical research and development for years to come.
