India's Department of Pharmaceuticals has opened the second round of its Promotion of Research and Innovation in Pharma & MedTech (PRIP) scheme, offering startups and MSMEs funding of up to ₹50 crore each for new drug discovery. The scheme, with a total outlay of ₹5,000 crore, will run until the financial year 2029–30, the government announced on Thursday.
The PRIP scheme allocates ₹700 crore to establish Centers of Excellence at seven National Institutes of Pharmaceutical Education & Research (NIPERs) and ₹4,200 crore to boost R&D investments in the pharmaceutical sector. The second call targets three priority areas: new medicines including new chemical and biological entities, complex generics and biosimilars, and novel medical devices. The first call, launched on 30 September 2026, approved ₹1,600 crore in financial aid for 41 projects, which is expected to attract ₹3,020 crore in private co-funding.
This initiative aims to strengthen India's pharmaceutical innovation ecosystem by mobilizing an estimated ₹4,620 crore in total R&D investment across the sector. The PRIP scheme supports startups and MSMEs in developing new drugs and medical technologies, aligning with the government's push to enhance domestic pharmaceutical capabilities and reduce reliance on imports. The focus on complex generics, biosimilars, and novel devices reflects growing market demand and global trends in pharma innovation.
Applications for the second round of PRIP funding are now open, providing a fresh opportunity for eligible companies to secure financial support for high-potential research. The government’s statement emphasized the scheme’s role in accelerating innovation and investment in pharma and MedTech sectors through 2029–30, with ₹5,000 crore committed overall under the initiative.