The Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers announced the second call for applications for the ₹5,000 crore PRIP (Promotion of Research and Innovation in Pharma & MedTech) Scheme. Opening in mid-September 2026, the scheme provides grants of up to ₹5 crore for early-stage and up to ₹100 crore for later-stage R&D projects. It aims to transition India’s pharmaceutical and medical device R&D ecosystem from volume-based manufacturing to high-value innovation, specifically targeting new medicines, complex generics, and AI-driven novel medical devices.
On August 28, 2026, the Union government announced the second call for applications under the Promotion of Research and Innovation in Pharma & MedTech (PRIP) Scheme. This call invites startups, MSMEs, and large industries to apply for R&D grants. The core trigger is the government's strategy to move India up the innovation value chain by financially de-risking high-cost research in deep-tech medical fields.
The announcement was made on August 28, 2026, in New Delhi. The online submission window for the second round will open on the national PRIP digital portal by mid-September 2026.
1. Track Categorisation: Projects are strictly divided into two tracks based on their Technology Readiness Level (TRL).
2. Early-Stage Process: Startups and MSMEs with technologies at TRL 1, 2, or 3 submit a concise Concept Note. Shortlisted applicants then file a detailed application. They can receive up to ₹5 crore to advance the technology up to TRL 5.
3. Later-Stage Process: Industry players, startups, and MSMEs with projects at TRL 4, 5, or 6 apply for up to ₹100 crore to reach higher commercialisation readiness.
4. Co-Funding Mandate: For later-stage projects, the ₹100 crore grant cannot exceed 35% of the total project cost; the applicant must fund the remaining 65%.
While India is widely known as the "Pharmacy of the World" by volume (supplying a massive share of global generic drugs), it ranks significantly lower in value and original drug discovery compared to the US, EU, and Japan. The PRIP scheme aims to bridge this exact gap by funding New Chemical Entities (NCEs) and New Biological Entities (NBEs).
Core Concept: Technology Readiness Level (TRL)
Q1. Which Union Ministry is responsible for implementing the Promotion of Research and Innovation in Pharma & MedTech (PRIP) Scheme? [Easy]
A) Ministry of Health and Family Welfare
B) Ministry of Science and Technology
C) Ministry of Chemicals and Fertilizers
D) Ministry of Commerce and Industry
Answer: C
Explanation: The PRIP scheme is implemented by the Department of Pharmaceuticals, which falls under the Ministry of Chemicals and Fertilizers.
Q2. What is the total financial outlay approved for the PRIP Scheme? [Easy]
A) ₹1,000 crore
B) ₹2,500 crore
C) ₹5,000 crore
D) ₹10,000 crore
Answer: C
Explanation: The PRIP Scheme has a total financial outlay of ₹ 5,000 crore aimed at strengthening the R&D ecosystem.
Q3. Under the PRIP Scheme's later-stage track, what is the maximum percentage of the total project cost that the government will fund? [Moderate]
A) 25%
B) 35%
C) 50%
D) 100%
Answer: B
Explanation: Financial assistance for later-stage projects is restricted to a maximum of 35% of the approved total project cost, with the remainder co-funded by the applicant.
Q4. In the context of the PRIP Scheme's priority areas, what does "SaMD" stand for? [Moderate]
A) Surgical and Medical Devices
B) Software as Medical Device
C) System and Mechanism Diagnostics
D) Synthetic and Molecular Drugs
Answer: B
Explanation: Priority areas include AI/ML based medical devices with software development, specifically noting Software as Medical Device (SaMD) and Software in Medical Device (SiMD).
Q5. To be eligible for early-stage funding (up to ₹5 crore) under the PRIP Scheme, a startup's project must currently be at which Technology Readiness Levels (TRL)? [Moderate]
A) TRL 1, 2, or 3
B) TRL 4, 5, or 6
C) TRL 7, 8, or 9
D) TRL 0 only
Answer: A
Explanation: Early-stage projects of startups and MSMEs must be at TRL 1, 2, or 3 to be eligible for the ₹5 crore assistance track.
Q6. Which of the following is NOT explicitly listed as a priority area for funding under the PRIP Scheme? [Tricky]
A) New Biological Entities (NBE)
B) Mass production of standard generic Paracetamol
C) Complex Generics and Biosimilars
D) Robotic medical devices for surgical procedures
Answer: B
Explanation: The scheme strictly focuses on R&D and innovation (New Medicines, Complex Generics, Novel Devices), not the mass manufacturing of existing standard generic drugs.
Q7. A company develops a novel diagnostic device using genetic technology. Under what condition is it eligible for PRIP funding? [Tricky]
A) It must already hold a patent in the United States.
B) It must have been previously approved by the CDSCO.
C) It must not have been previously approved by the CDSCO.
D) It must be fully funded by a foreign direct investor.
Answer: C
Explanation: The scheme defines "Novel medical devices" as targeted innovative therapeutics that have NOT been previously approved by the Central Drugs Standard Control Organisation (CDSCO).
Q8. How does the application process differ for early-stage (TRL 1-3) projects under the second call of the PRIP Scheme? [Tricky]
A) They do not require any application form and are granted funds directly.
B) They must follow a two-stage process beginning with a concise Concept Note.
C) They are evaluated exclusively by the Ministry of Health.
D) They are forced to co-fund 65% of the project cost.
Answer: B
Explanation: Early-stage projects follow a two-stage process: beginning with a concise Concept Note (which can even be submitted by ecosystem enablers), followed by a detailed application for shortlisted candidates.
PYQ 1:
With reference to the Promotion of Research and Innovation in Pharma & MedTech (PRIP) Scheme, which of the following best describes its primary objective?
A) To provide free generic medicines to Below Poverty Line (BPL) families.
B) To shift India's pharmaceutical sector from volume-based to innovation and value-based growth.
C) To establish new medical colleges and AIIMS hospitals across rural India.
D) To completely ban the import of all foreign medical devices into India by 2030.
Answer: B
Explanation: The core aim of the PRIP scheme is to strengthen the R&D ecosystem and help companies leapfrog up the innovation value chain, transitioning from volume to value.
PYQ 2:
Consider the following statements regarding the PRIP Scheme:
1. It is implemented by the Ministry of Health and Family Welfare.
2. The scheme provides financial assistance up to ₹100 crore for later-stage R&D projects.
3. Projects that were submitted in Round 1 can be resubmitted in Round 2 for additional funding.
Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 only
C) 2 and 3 only
D) 1, 2 and 3
Answer: B
Explanation: Statement 1 is incorrect (it is implemented by the Ministry of Chemicals and Fertilizers). Statement 2 is correct (later-stage projects get up to ₹100 crore). Statement 3 is incorrect (Round 1 applicants are asked NOT to resubmit the same project).
PYQ 3:
Assertion (A): Under the PRIP Scheme, later-stage R&D projects can receive up to ₹100 crore, but the government limits this assistance to a maximum of 35% of the total project cost.
Reason (R): The government aims to ensure that industry applicants have a financial stake (skin in the game) and co-fund the remainder of the commercialisation costs.
Select the correct code:
A) Both (A) and (R) are true and (R) is the correct explanation of (A).
B) Both (A) and (R) are true but (R) is not the correct explanation of (A).
C) (A) is true but (R) is false.
D) (A) is false but (R) is true.
Answer: A
Explanation: The 35% cap on the ₹100 crore grant explicitly requires the remainder of the approved total project cost to be co-funded by the applicant, ensuring private sector commitment to the innovation.
Question 1 (150 words): Discuss the significance of the PRIP scheme in transforming India's pharmaceutical sector from 'volume' to 'value'.
The Promotion of Research and Innovation in Pharma & MedTech (PRIP) Scheme, launched with a ₹5,000 crore outlay, is a watershed policy intervention designed to elevate India up the global innovation value chain. While India is currently celebrated as the "Pharmacy of the World" for supplying a massive volume of affordable generic drugs, it lags significantly in high-value, original drug discovery.
The PRIP scheme addresses this structural weakness by providing targeted risk capital. By offering up to ₹100 crore for later-stage projects (capping government aid at 35% to ensure private co-funding) and ₹5 crore for early-stage startups, it de-risks deep-tech investments. Crucially, its focus on New Chemical Entities (NCEs), complex biosimilars, and AI/ML-driven novel medical devices shifts the ecosystem from mere reverse-engineering to patent-generating fundamental research. Ultimately, this transition is essential for ensuring long-term self-reliance (Atmanirbhar Bharat) in advanced therapeutics and retaining high-value intellectual property within the domestic economy.
Question 2 (250 words): What are Technology Readiness Levels (TRLs)? Analyze the role of objective R&D assessment frameworks like TRL in maximizing the impact of government funding schemes like PRIP.
Technology Readiness Levels (TRLs) constitute a standardized, 9-level framework originally developed by NASA to objectively estimate the maturity of a technology during its research phase. The scale ranges from TRL 1, representing the observation of basic scientific principles, to TRL 9, denoting a fully proven system in an operational environment.
The integration of the TRL framework into government initiatives, prominently seen in the ₹5,000 crore PRIP Scheme, plays a critical role in maximizing public funding impact. Firstly, it introduces strict objectivity. By explicitly dividing the PRIP tracks into early-stage (TRL 1-3) and later-stage (TRL 4-6), the Ministry of Chemicals and Fertilizers eliminates subjective bias in grant allocation. Assessors can accurately match the financial risk with the technological maturity—limiting high-risk early ideas to ₹5 crore grants while backing mature, commercialisation-ready projects with up to ₹100 crore.
Secondly, TRL frameworks enforce fiscal prudence and accountability. In the later-stage track, the government caps its assistance at 35% of the project cost, a metric easily justified when a technology reaches TRL 4 or above, as private co-funders are more willing to invest in mature proofs-of-concept. Furthermore, the recent launch of the national 'TRL Compass Platform' by the Principal Scientific Adviser ensures that this assessment standard is uniform across the country. Consequently, frameworks like TRL prevent the misallocation of resources, foster a transparent bridge between academia and industry, and ensure that schemes like PRIP successfully transition novel medical devices and drugs from laboratories to the market.