New Delhi witnessed a major announcement on September 9 regarding India’s research and development prospects. Union Minister of Commerce and Industry Piyush Goyal stated that India can unlock a Rs 12 lakh crore opportunity in this sector by utilising its cost advantage along with the support of government, industry, and academic institutions.
Goyal, through a post on X, highlighted that India’s research expenses could be as low as one-fifth or one-sixth of those in Switzerland or Europe, offering a substantial edge. This cost difference positions India well to establish itself as a global innovation hub.
He emphasised that a government-backed R&D programme receiving about Rs 1 lakh crore in funding, if matched by an equal industry contribution, could facilitate research worth Rs 10-12 lakh crore. This would harness resources from medical colleges, Indian Institutes of Technology, and other centres of excellence across the country.
“If industry gives the matching contribution then we use our academia … we can actually do 10-12 lakh crores research and development,” Goyal said in a video shared on X.
The minister pointed to promising opportunities in product design, clinical trials, and manufacturing of medical equipment, noting that India’s cost arbitrage could attract global research and innovation efforts.
has urged the healthcare and pharmaceutical sectors to advance beyond generic drugs and focus more on research, development, and innovation. Speaking at the Bharat Health Global Expo 2026 earlier in the month, he stressed the importance of building resilient and globally integrated healthcare supply chains to reinforce India’s role as a trusted healthcare partner.
Known as the “pharmacy of the world,” India has the potential to expand into new molecules, biosimilars, and biotechnology sectors, he added.
Furthermore, Goyal encouraged the pharmaceutical industry to leverage government initiatives that support R&D and innovation, including the Research and Development Innovation Fund.
He underscored the need for India to develop and patent its own products in pursuit of becoming a developed economy by 2047.
The minister also emphasized restoring domestic production capacity for active pharmaceutical ingredients and key starting materials, while promoting indigenous manufacturing of currently imported products.
The government is actively working on establishing bulk drug parks and 100 new industrial parks, which will offer dedicated areas for pharmaceutical and healthcare companies, Goyal said.