India Pharma Outlook Team | Friday, 03 October 2025
The government has initiated the application process for research and innovation projects under Pharma-MedTech Innovation Scheme to make this sector globally competitive and innovation-driven.
The scheme, with an approved outlay of Rs 5,000 crore, is expected to provide support for approximately 300 projects, creating a pipeline of innovation, and draw nearly Rs 11,000 crore in total R&D investments.
The projects will focus on new medicines, complex generics, biosimilars, and advanced medical devices, as stated by the Ministry of Chemicals and Fertilisers today.
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The revised guidelines will provide increased funding support for the startups and MSMEs under this scheme. For early-stage project costs up to Rs 9 crore, up to Rs 5 crore in support is permissible - 100 percent funding will be funded for up to Rs 1 crore in costs, with 50 percent beyond Rs 1 crore. For later stage projects, costs up to Rs 285 crore in costs, companies can be funded to Rs 100 crore, with up to 35 percent of project costs supported.
For the area of Strategic Priority Innovation (SPI) - rare diseases, antimicrobial resistance, vaccine-preventable diseases, and outbreak-related pathogens, funding support may be available for up to 50 percent of project costs.
The program also aims to build deeper partnerships between industry and leading research institutions. Applications opened on October 1 via a specialized digital platform to make it easier for stakeholders wishing to be part of India’s aspirational Pharma-MedTech growth story.
