India Unleashes Rs. 5,000 Cr Innovation Fund to Lead Global Creation

• PRIP scheme launches Rs. 5,000 Cr innovation push in pharma and MedTech
• Indian pharma must invest in R&D, compliance, and supply chains
• Healthcare ecosystem expands via Jan Aushadhi, Ayushman, nutraceuticals

India's pharma and MedTech industries await the change with the launch of the Rs. 5,000-crore Promotion of Research and Innovation in Pharma MedTech Sector (PRIP) scheme. The scheme will start disbursals by December 2025 and is likely to spur Rs. 17,000 crore of R&D spending, an aggressive move away from producing generic drugs to growth through innovation.

This change arrives when world pharma business is confronted with a "patent cliff." During the 2030 year, patents of 24 blockbusters, whose combined annual sales are over US dollar 250 billion, including Humira, Keytruda, Stelara, and Symbicort, will run out. This presents unprecedented opportunities to Indian companies, both economically as well as in terms of access to healthcare.

But to ride on these gains will not be easy. Indian pharma firms will have to spend big on bioequivalence studies, regulatory affairs, and good supply chains to meet international standards. Benchmarkers such as Zydus, Sun Pharma, and Bharat Serums & Vaccines are already getting ready for the challenge with world-class R&D facilities.

Concurrently, multinationals such as Novartis, Novo Nordisk, and Eli Lilly are discovering it more appealing to out-license their products to Indian companies, which is a sign of greater credibility and local market appreciation of India.

Also Read: Novo Nordisk Plans Nationwide Launch of Wegovy in Indian Market

Other policy initiatives are complementing the thrust. Grant of exemption of customs duty on 36 lifesaving medicines and concessional duty on six of them, such as cancer and rare disease medicines, reduces the cost of new medicines. The health budget for FY26 also went up by 9.46 percent to Rs. 95,000 crore.

From 15,000+ Jan Aushadhi Kendras to growth in the nutraceutical business, India is creating a whole ecosystem for affordable innovation. Growth of PM Ayushman Yojana and infrastructure development of tier-2 and 3 cities opens up the pharma market even further.

With the government backing industry greed, India will be not only the pharmacy of the world, but its zone of innovation as well.