India Launches ₹11,000 Crore Initiative to Enhance Pharma-MedTech Innovation

The Indian government has announced a significant initiative aimed at boosting innovation in the pharmaceutical and medical technology sectors. Under the Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP) scheme, the government is inviting proposals for industry and startup projects totaling approximately ₹11,000 crore. This initiative, managed by the Department of Pharmaceuticals, aims to transform India’s pharma and MedTech landscape into a globally competitive and innovation-driven sector.

The PRIP scheme has an approved outlay of ₹5,000 crore, which is expected to catalyse a robust innovation pipeline within the industry. The program is poised to support around 300 projects, focusing on the development of new medicines, complex generics, biosimilars, and novel medical devices.

Financial Assistance Details

The amended scheme provides distinct financial assistance levels for early-stage and later-stage projects. For early-stage initiatives, Micro, Small and Medium Enterprises (MSMEs) and startups can apply for funding of up to ₹9 crore, with the government offering assistance of up to ₹5 crore. The financial structure for these projects includes full funding for costs up to ₹1 crore and 50% of additional costs beyond that, subject to the maximum limit.

For later-stage projects, which can involve costs of up to ₹285 crore, assistance may reach up to ₹100 crore. The financial support for these projects is capped at 35% of the total project cost. Additionally, projects identified as part of the Strategic Priority Innovation (SPI) areas, which target high public health significance but lower market potential, may receive up to 50% funding, also capped at ₹100 crore. SPI areas include rare diseases, antimicrobial resistance, and pathogens associated with pandemics.

The government also highlighted that the amended scheme will foster strong institutional support to nurture the innovation journey in the sector.

Application Process and Timeline

The application process for this initiative has commenced as of October 1, 2025, through a dedicated digital portal designed to streamline submissions. This fully digital approach aims to facilitate ease of access for interested parties.

The introduction of the PRIP scheme marks a pivotal moment for India’s pharma and MedTech industries, encouraging innovation and strengthening the country’s health security framework. By supporting a diverse range of projects, the initiative seeks to position India as a leader in pharmaceutical and medical technology innovation on the global stage.