Boost R&D Investment for Global Leadership: Nadda to Indian Pharma

Published on: April 2026

Union Health Minister JP Nadda has urged Indian pharmaceutical companies to significantly increase research and development (R&D) investment, stating that innovation-driven growth is essential for achieving global leadership in the pharmaceutical sector.

The push for higher R&D investment in Indian pharma comes as the country looks to move beyond its traditional strength in generic drug manufacturing and expand into high-value, innovation-led segments.

Focus on Innovation to Drive Global Competitiveness

Addressing industry stakeholders, Nadda highlighted that sustained investment in R&D is critical for Indian drugmakers to compete globally in areas such as new drug discovery, biologics, and complex formulations.

Innovation-led growth will enable companies to diversify into:

• Novel drug discovery
• Precision medicine
• Advanced biologics

This shift is expected to strengthen India’s position in the global pharmaceutical market and improve long-term industry growth prospects.

Government Push to Strengthen Research Ecosystem

The government is actively supporting the development of a stronger pharmaceutical research ecosystem through policy initiatives, improved infrastructure, and industry-academia collaboration.

Nadda emphasised aligning R&D efforts with national healthcare priorities, including treatments for emerging diseases, non-communicable conditions, and unmet medical needs.

Balancing Generics Strength with Innovation

India is a global leader in generic medicines, but increasing competition and pricing pressures are prompting a shift toward innovation-led growth.

Increased R&D investment in Indian pharma will help companies:

• Develop proprietary products
• Improve profit margins
• Expand global market presence

Challenges in Scaling R&D Investment

Despite the push, pharmaceutical R&D remains capital-intensive and high-risk, with long development timelines and regulatory complexities.

Smaller firms may face constraints in funding long-term research, making partnerships and collaborations essential for innovation.

Impact on Healthcare and Public Health

Strengthening R&D investment has broader implications for healthcare, including the development of more effective treatments and improved access to advanced therapies.

It also enhances national health security by enabling faster response to emerging health threats, as seen during the COVID-19 pandemic.

Nadda’s call signals a strategic shift toward building a globally competitive, innovation-driven pharmaceutical industry in India.