E-Paper
India needs an end-to-end drug innovation ecosystem now
This article is authored by Mita, director, Discovery (South Asia), Cytiva.
The government has rolled out the official document inviting companies to research and develop novel drugs, therapies, and medical devices for one of its most ambitious pharmaceutical R&D interventions—the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP). With an outlay of ₹5,000 crore, the scheme recognises that India’s pharmaceutical sector must evolve beyond its generics legacy to become an engine of discovery-led growth in biopharma. As PRIP-backed research and development (R&D) centres take shape, the essential question is: How can India build an end-to-end drug discovery ecosystem that is globally competitive and domestically resilient, while there’s still room to lead in innovation?
This comes in at a critical juncture where patent cliffs in major segments, the emergence of AI-led drug design, and rising demand for biologics are reshaping how novel therapies are conceived, tested, and brought to commercialise. Simultaneously, global health institutions are pushing for localised innovation to tackle access gaps in antimicrobials, rare diseases, and paediatric formulations. India should leverage this opportunity to pivot from a volume-based supplier in a world increasingly driven by value and innovation.
India is among the top 12 biotechnology destinations globally, with the industry valued at $130 billion in 2024 and projected to grow to $300 billion by 2030. The biopharmaceutical sector plays a central role in this growth story. It supplies 60% of the global vaccine demand and contributes 20% to the worldwide biosimilar development pipeline. However, despite this scale, 70% of pharma exports are still made up of generics. To truly move up the value chain and expand its global leadership, India must transition from being a contract manufacturer to a source of novel molecules, mechanisms, and platforms.
Currently, India’s total R&D expenditure is close to $100 billion. Indian pharma firms currently hold less than 5% of the global biosimilars segments, but top companies are investing in R&D and expanding their pipelines. Discovery requires integrated infrastructure like wet labs, GMP testing, AI-led compound screening, and translational hubs linking academia with industry. Initiatives like the National Biopharma Mission, PLI programmes, and BIRAC-led initiatives are positioning India well to capitalise on this growth.
India has several comparative advantages in building a discovery economy. Its STEM talent pipeline, with two million graduates each year, is among the world’s largest, which is pushing for a growing ecosystem of tech startups leveraging AI-based drug discovery. India offers a diverse and data-rich clinical environment critical for testing therapies in areas where western datasets are inadequate.
On the digital front, platforms like the Ayushman Bharat Digital Mission can power AI-assisted drug discovery, accelerate disease surveillance, and generate real-world evidence at scale. There should be a convergence in Indian academic labs and commercial pathways. The industry pins its hopes on the Bio-E3 policy as it aims to accelerate the development of technologies for bio-based products and their commercialisation by setting up BioEnablers like Bio-Artificial (Bio-AI) Intelligence Hubs, Biofoundries, and Biomanufacturing Hubs across the country.
Between 2025 and 2030, patents for drugs worth over $251 billion are set to expire globally. For Indian firms, this opens familiar territory of biosimilar replication but also provides a higher-value opportunity to innovate around delivery systems, combine off-patent molecules with mechanisms of action, and enter disease areas that are global players early. The successful launch of Nafithromycin, India’s first-discovered antibiotic, offers a blueprint. To mainstream such innovation, India must build ecosystems that allow discovery to survive early failures and scale early wins. By 2030, innovative exports could reach $2 billion, driven by in-licensing global products and out-licensing Indian pipeline assets.
India’s biotech innovation is gaining momentum but success depends on four key shifts. First, a sharper focus on mission-oriented R&D. Second, biotech parks must evolve into discovery ecosystems with end-to-end capabilities. Third, we need an IP ecosystem that supports both innovation-driven businesses and those that operate at scale. Fourth, global collaborations on biotech innovation can fast-track innovation. These transitions matter not only for India’s economic growth and disease burden, but also for shaping global health by driving greater access, affordability, and availability of life-saving treatments.
By investing in discovery today, India can safeguard its place on the next innovation frontier and unlock an additional $170 billion biopharma opportunity by 2030. This is the moment for industry leaders, policymakers, and investors to act decisively and position India as the global engine of health innovation.
This article is authored by Mita, director, Discovery (South Asia), Cytiva.
