India’s pharmaceutical startup sector is witnessing a rapid growth and the reason is several proactive government initiatives which are basically aimed to nurture innovation and investment. Lately, the Department of Pharmaceuticals launched the Scheme for Promotion of Research and Innovation in Pharma-MedTech sector (PRIP) to focus more on supporting startups through its Component BIII. About 125 research projects have been identified and 50 are specifically targeted at pharmaceutical startups.
The Startup India Initiative was introduced in 2016 and since then has been a cornerstone of the support. The program includes three flagship schemes. These are the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS) and the Credit Guarantee Scheme for Startups (CGSS). The schemes provide essential financial backing and risk mitigation. The schemes also facilitate growth and development of startups across various industries including pharmaceuticals.
The Biotechnology Industry Research Assistance Council (BIRAC) plays an important role in the ecosystem. It comes under the Department of Biotechnology and through programs like the Biotechnology Ignition Grant (BIG), Sustainable Entrepreneurship and Enterprise Development (SEED) and Launching Entrepreneurial Driven Affordable Products (LEAP), it offers substantial funding ranging from INR 30 Lakhs to INR 100 Lakhs.
The Department for Promotion of Industry and Internal Trade (DPIIT) meanwhile has recognized 1,40,803 entities as startups. 2,127 of them are within the pharmaceutical sector. The figure highlights growing importance of the sector and also the commitment of government in strengthening the startup ecosystem.
There are several key schemes under the Startup India Initiative and these have made a significant impact over the years. The Startup India Seed Fund Scheme (SISFS) was launched in FY 2021-22 and it had a corpus fund of Rs. 945 crore. It has allocated Rs. 862.84 crore to 205 incubators.
The Fund of Funds for Startups (FFS) is managed by the Small Industries Development Bank of India (SIDBI). It has invested Rs. 10,804.7 crore in 138 Alternative Investment Funds (AIFs) registered with SEBI.
The Credit Guarantee Scheme for Startups (CGSS) is operational since April 1, 2023. It has guaranteed 182 loans totaling Rs. 426.09 crore to startups.
