Second Call for Applications Under ₹5,000 Crore PRIP Scheme to Boost Pharma & MedTech Innovation announced
In this note
1. At a Glance
- PRIP (Promotion of Research and Innovation in Pharma-MedTech Sector) is a Central Sector Scheme of the Department of Pharmaceuticals (DoP) with an outlay of ₹5,000 crore to shift India's Pharma-MedTech sector from cost-based to innovation-based growth [1].
- The second call for applications invites industry and startup projects worth about ₹11,000 crore in combined R&D investment [2].
- Relevant for Prelims (scheme facts, outlay, CoEs) and Mains GS-II/III (pharma self-reliance, innovation ecosystem, health infrastructure).
- Reflects India's push to move beyond "generics pharmacy of the world" branding toward original drug/device innovation.
2. Why in the News
- DoP announced the second call for proposals under PRIP, inviting industry and startups to submit projects for R&D support, following amendments notified on 01.10.2025 to improve governance and benefit-sharing clarity [1][2].
3. Background & Evolution
- PRIP notified on 17.08.2023, for the period 2023-24 to 2027-28 (5 years) [3].
- Objective: transform Indian Pharma-MedTech sector from cost-based manufacturing to innovation-driven, globally competitive R&D [3].
- First call for proposals launched subsequently under the original guidelines; scheme later amended (01.10.2025) for smoother implementation, clearer governance, and more effective benefit-sharing mechanisms [1].
- Second call for applications launched under the amended framework [1][2].
4. Core Static Facts
| Item | Detail |
|---|---|
| Scheme name | Promotion of Research and Innovation in Pharma-MedTech Sector (PRIP) |
| Implementing department | Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers [3] |
| Total outlay | ₹5,000 crore [1][3] |
| Duration | 2023-24 to 2027-28 (5 years) [3] |
| Notified date | 17.08.2023 [3]; amended 01.10.2025 [1] |
| Expected projects | ~300 projects [1][3] |
| Total catalysed R&D investment | ~₹11,000 crore [1][2][3] |
| Centres of Excellence (CoEs) | 7 CoEs, one at each National Institute of Pharmaceutical Education and Research (NIPER), outlay ₹700 crore [3] |
| MSME/startup early-stage support | Projects up to ₹9 crore eligible for assistance up to ₹5 crore [1] |
| Focus areas | New medicines, complex generics, biosimilars, novel medical devices [1][3] |
5. Multi-Dimensional Analysis
Economic
- Aims to reduce India's dependence on imported APIs/high-value devices by building domestic innovation capacity, supporting the broader Atmanirbhar Bharat push in pharma [4].
- Catalytic effect: ₹5,000 crore government outlay expected to leverage ₹11,000 crore in total sector R&D investment [1][3].
Scientific/Technological
- Direct funding for R&D in new chemical/biological entities, complex generics, biosimilars, and novel medical devices — moving India up the value chain from formulation manufacturing to original innovation [3].
- Seven CoEs at NIPERs build research infrastructure and human capital for sustained innovation [3].
Administrative
- Structured as sequential "calls for applications," allowing phased, competitive selection of projects rather than one-time disbursal.
- Recent amendment (Oct 2025) specifically addressed governance clarity and benefit-sharing — signals implementation-stage friction was identified and corrected [1].
Governance/Ethical
- Benefit-sharing mechanisms indicate provisions for equitable returns from publicly funded research (e.g., IP/royalty sharing), relevant to India's innovation-policy debates on public-funded R&D outcomes [1].
Social
- Support ceiling for MSMEs/startups (up to ₹5 crore assistance on ₹9 crore projects) targets small innovators, not just large pharma firms, widening participation [1].
6. Recent Developments (last 12-18 months)
- 01.10.2025: PRIP scheme amended and notified to improve implementation clarity and benefit-sharing [1].
- 2025-26: Second call for applications launched, inviting projects worth ~₹11,000 crore [1][2].
- DoP conducted industry dialogues/workshops on PRIP at Bengaluru and Mumbai (13 March 2025) to sensitize stakeholders ahead of application cycles [5][6].
- First call for proposals was issued earlier (post-2023 notification), also targeting ~₹11,000 crore projects [2].
7. Prelims Hooks
- PRIP scheme outlay: ₹5,000 crore.
- Implementing department: Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers (not Ministry of Health).
- Scheme period: 2023-24 to 2027-28 (5 years).
- Original notification date: 17 August 2023.
- Scheme amended and re-notified: 1 October 2025.
- Expected number of projects supported: ~300.
- Total catalysed R&D investment target: ~₹11,000 crore.
- Number of Centres of Excellence set up: 7, one at each NIPER.
- CoE outlay: ₹700 crore.
- MSME/startup early-stage project cap: ₹9 crore project cost, assistance up to ₹5 crore.
- Focus innovation areas: new medicines, complex generics, biosimilars, novel medical devices.
8. Mains Relevance
- GS-III: Science & Technology — indigenization of technology and developing new technology; Indian economy — issues relating to industrial growth (pharmaceutical sector).
- GS-II (secondary): Government policies and interventions for development in the health/pharma sector.
- Possible question stems:
- "Discuss the significance of the PRIP scheme in transforming India's Pharma-MedTech sector from a generics-based to an innovation-based economy." (GS-III)
- "Examine the challenges in India's pharmaceutical R&D ecosystem and assess how schemes like PRIP address them." (GS-III)
- "India remains heavily dependent on imported APIs despite being the 'pharmacy of the world.' Critically analyse government measures, including PRIP, to address this paradox." (GS-III)
9. Related Topics to Study Next
- PLI Scheme for Pharmaceuticals — related manufacturing-incentive scheme, often confused with PRIP.
- Bulk Drug Parks & API import dependence — structural vulnerability PRIP indirectly addresses.
- National Policy on Research & Development and Innovation in Pharma-MedTech Sector — the policy from which PRIP derives.
- NIPERs (National Institutes of Pharmaceutical Education and Research) — host institutions for CoEs.
- Startup India / Atal Innovation Mission — broader innovation-funding ecosystem PRIP overlaps with for MSME/startup support.
- Biosimilars and complex generics regulatory framework (CDSCO) — technical/regulatory context for PRIP's focus areas.
- Atmanirbhar Bharat in pharmaceuticals — overarching self-reliance narrative.
10. Common Errors / Trap Areas
- Confusing PRIP (research/innovation funding, DoP) with PLI scheme for pharmaceuticals (manufacturing incentive, also DoP) — different objectives and outlays.
- Assuming Ministry of Health & Family Welfare implements PRIP — it is actually the Department of Pharmaceuticals under Ministry of Chemicals & Fertilizers.
- Mixing up the ₹5,000 crore government outlay with the ₹11,000 crore total catalysed R&D investment — these are different figures.
- Misremembering scheme launch year as 2023 without noting the 2025 amendment, which is the actual trigger for "second call" news.
- Assuming CoEs are new institutions — they are set up within existing NIPERs, not standalone bodies.
Sources
- 1Call for proposals under PRIP scheme for industry & startup projects worth about ₹11,000 crorepib.gov.in · tier 1
- 2Promotion of Research and Innovation in PRIP Schemepib.gov.in · tier 1
- 3PRIP Scheme aims to transform Indian PharmaMedTech Sector through innovation based growth by strengthening research infrastructurepib.gov.in · tier 1
- 4Research and Innovation in Pharma-MedTech Sectorpib.gov.in · tier 1
- 5Department of Pharmaceuticals hosts Industry Dialogue on PRIP Scheme at Bengalurupib.gov.in · tier 1
- 6Industry dialogue on PRIP Scheme held at Mumbai on 13th March 2025pib.gov.in · tier 1