Last Updated on November 11, 2025 by The Health Master
Incentive scheme
The government of India has officially launched a incentive scheme in the fiorm of massive financial aid package aimed at lighting a fire under the country’s pharmaceutical and medical device technology (MedTech) research sectors.
This grant; Rs 5,000 crore strategic investment designed for drug innovation and medical device development in India.
Financial Lifeline for Innovators
The Pharmaceutical Research and Innovation Scheme (PRIP), spearheaded by the Department of Pharmaceuticals (DoP), is structured to support and helping in projects.
The financial support is broken down into two main objects based on a project’s technical maturity, known as the Technology Readiness Level (TRL):
For Startups and MSMEs:
Financial assistance of up to Rs 5 crore is available for smaller projects worth up to Rs 9 crore.
This is a crucial lifeline for Biopharma startup funding and small MedTech innovation projects.
For Large-Scale, Advanced Projects:
Larger support, up to Rs 100 crore, for major undertakings valued at up to Rs 285 crore.
This level of funding is geared toward increasing late-stage development of the projects.
This massive research incentive scheme is expected to catalyze nearly 300 different industry and startup projects, drawing in a total private investment of roughly Rs 11,000 crore.
That’s a powerful vote of confidence in India’s capacity for new drug development.
Targeting High-Value
The incentive scheme isn’t scattering funds aimlessly; it’s sharply focused on areas that are complex, often overlooked, and hold massive potential for global health and economic value.
Important areas for Pharma Research:
The priority list for pharmaceutical projects includes high-stakes fields like:
- Developing New drugs.
- Creating advanced versions of biologic drugs).
- Research into orphan drugs (for rare diseases).
- Work on stem cell therapy.
- Crucial initiatives to combat Antimicrobial Resistance (AMR).
Advancements in MedTech Innovation:
For medical devices, the support aims to push the boundaries of technology:
Creating diagnostic and screening tools using advanced genetic technologies.
Developing advanced Robotic medical devices.
Pioneering novel in-vitro diagnostics (IVDs), including tests using biomarkers for precision drug.
Understanding the Fine Print
Innovation is a partnership, and the government has set up a clear framework for how the funds are disbursed and how success is shared.
Milestone-Linked Payouts
Selected projects won’t get a lump sum.
Instead, the financial assistance is distributed across four distinct stages (M0 to M4, excluding M3) that are tied to achieving specific project milestones.
Recipients must clearly outline how each payment installment will be utilized ensuring accountability and progress.
The “Benefit Share” Clause
To ensure taxpayers benefit from the success of publicly funded research, the amended policy includes a mandatory “benefit share” requirement:
Small Projects:
Applicants must share 5% of the net sales from each commercialized product per year.
This sharing ends once the total payment back to the government equals the total financial assistance originally disbursed.
Large Projects:
The profit share increases to 10% of the net sales.
This payment obligation continues until the government receives a total amount equal to 150% of the financial assistance provided.
Deadlines
The official notification from the Ministry of Chemicals and Fertilizers followed several revisions based on valuable feedback from the industry, making the official rollout of Component B, that focuses on development of new drug and medical device.
Proposal Submission Deadline: November 10, 2025
A technical committee will be formed to rigorously review all project proposals and will also be tasked with recommending any follow-on or additional financial assistance that projects may require later in their development cycle.
Q: What is the total budget allocated for the PRIP scheme?
A: The total budget of Rs 4,200 crore is allocated for the PRIP scheme.
Disclaimer: This article contains information obtained from the source mentioned below. Our team made changes in the format to rewrite and present the news or article in a unique format.
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