Government Opens Applications for ₹11,000 Crore PRIP Scheme to Transform India's Pharma-MedTech Sector

The Department of Pharmaceuticals, Government of India, has officially invited applications for research and innovation projects under the Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP) scheme. This landmark initiative, backed by an approved outlay of ₹5,000 crore, is designed to transform India's pharmaceutical and medical technology sector into a globally competitive, innovation-driven domain.

Enhanced Funding Framework for Early and Later Stage Projects

Under the amended scheme guidelines, early-stage projects led by micro, small and medium enterprises (MSMEs) and startups with costs up to ₹9 crore may receive assistance of up to ₹5 crore. The financial assistance structure provides 100% funding for costs up to ₹1 crore and 50% of additional costs beyond ₹1 crore, subject to the maximum ceiling of ₹5 crore.

For later-stage projects undertaken by industry players, MSMEs, and startups with costs up to ₹285 crore, financial assistance of up to ₹100 crore may be provided, covering 35% of the total project cost. The scheme is expected to catalyse a Pharma-MedTech innovation pipeline by supporting approximately 300 projects involving total R&D investment of about ₹11,000 crore in new medicines, complex generics, biosimilars and novel medical devices.

Strategic Priority Innovation Areas Receive Enhanced Support

The amended scheme introduces enhanced funding provisions for Strategic Priority Innovation (SPI) areas, acknowledging their high public health significance but relatively lower market potential. Projects targeting rare diseases, antimicrobial resistance, vaccine-preventable diseases, tropical vector-borne diseases, and outbreak or pandemic-causing pathogens may receive assistance up to 50% of project costs, subject to a maximum of ₹100 crore.

Industry-Academia Collaboration Incentives

The revised framework offers specific incentives for industry, MSMEs, and startups to collaborate with academic and research government institutions of national repute. The scheme provides preference in selection for up to nine projects each at early and later stages, provided the collaborative development is significant and the collaborative partners possess strong credentials.

Companies may utilize scheme assistance to in-license research outputs developed by academic institutions, thereby linking academic research strengths with industrial development capabilities. Additionally, the use of funds for creating public R&D assets in such institutions as part of approved projects is incentivized under the scheme.

Institutional Infrastructure Development

Beyond financial assistance, the scheme provides for the development of institutional enablers to nurture the innovation journey. Seven dedicated industry-focused Centres of Excellence at the National Institutes of Pharmaceutical Education and Research (NIPERs) will serve as hubs of advanced research. The NIPER Academia-Industry Coordination Committee, recently constituted under the Secretary, Department of Pharmaceuticals with joint membership from all industry associations and NIPERs, will institutionalize industry-institute linkages.

The scheme envisions the development of a pan-India digital Pharma-MedTech innovation exchange to connect innovators with investors, mentors, relevant government initiatives such as Patent Mitra and MedTech Mitra, and global opportunities. This platform will ensure comprehensive support for innovators throughout their R&D journey from idea to market.

Digital Application Process and Timeline

The application window opened on October 1, 2025, through a dedicated portal to facilitate a fully digital application process. Detailed guidelines, eligibility criteria, timelines, and instructions are available on the PRIP portal at https://prip.pharma-dept.gov.in.