Current Affairs: Passage of the Week - 06 October 2025 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
The government has invited applications for research and innovation projects under its Promotion of Research and Innovation in Pharma-MedTech Sector scheme to make it a globally competitive and innovation-driven sector, according to an official statement.
With an approved outlay of Rs 5,000 crore, the scheme is expected to catalyse a Pharma-MedTech innovation pipeline by supporting around 300 projects, involving total R&D investment of about Rs 11,000 crore in new medicines, complex generics, biosimilars and novel medical devices, the Ministry of Chemicals and Fertilisers said in the statement.
While inviting applications, the Department of Pharmaceuticals has notified amendments to the scheme and issued revised guidelines to enhance the impact of the scheme and make it better suited to address the requirements of all stakeholders.
Under the amended scheme, for early-stage projects, MSMEs and startups may apply for projects costing up to Rs 9 crore for assistance of up to Rs 5 crore, it said.
For later-stage projects costing up to Rs 285 crore, MSMEs and startups may apply for assistance up to Rs 100 crore, it added.
The scale of financial assistance for early-stage projects is 100 percent for costs up to Rs 1 crore and 50 percent of additional costs beyond Rs 1 crore, subject to a maximum of Rs 5 crore, the release said.
The scale for financial assistance for later-stage projects is 35 percent of project cost, subject to a maximum of Rs 100 crore, it added.
The amended scheme provides that assistance for later-stage projects may be to the extent of 50 percent, subject to a maximum of Rs 100 crore.
Such Strategic Priority Innovation (SPI) areas include specified rare diseases, antimicrobial resistance, vaccine-preventable diseases, tropical vector-borne diseases and outbreak/pandemic-causing pathogens.
Moreover, the amended scheme offers several specific incentives to industry, MSMEs and startups to collaborate with academic and research government institutions of national repute.
The application window opened on October 1 through a dedicated portal to drive a fully digital application process, the release stated.
[Excerpt from Economic Times "Govt seeks proposals for pharma, medtech projects under PRIP scheme" Dated 06/10/25]

Q1: Which of the following best represents the strategic rationale behind offering higher financial support for certain innovation areas under the scheme?
(a) To ensure faster approval of commercial manufacturing units
(b) To prioritize research in areas with higher social and global health impact
(c) To promote private sector monopoly in emerging medical technologies
(d) To reduce dependency on foreign patents in all pharmaceutical domains

View Answer  

Ans: (b)
Sol: The scheme provides up to 50% assistance for Strategic Priority Innovation areas like rare diseases and pandemic-related pathogens, showing preference for research with greater public health value.

Q2: If a startup proposes a project costing ₹7 crore under the early-stage category, what would be the maximum financial support it could receive under the scheme?
(a) ₹3.5 crore
(b) ₹5 crore
(c) ₹7 crore
(d) ₹9 crore

View Answer  

Ans: (b)
Sol: For early-stage projects by MSMEs/startups, the cap is ₹5 crore, even if the project cost exceeds ₹5 crore.

Q3: Which of the following outcomes would most logically demonstrate the success of the Promotion of Research and Innovation in Pharma-MedTech Sector scheme?
(a) A rise in domestic production of traditional medicines
(b) Increased global competitiveness through innovation-driven drug and device development
(c) Greater import of advanced research equipment from foreign countries
(d) Reduction in prices of existing pharmaceutical products

View Answer  

Ans: (b)
Sol: The scheme’s primary goal is to transform the Pharma-MedTech sector into an innovation-driven, globally competitive industry.

Q4: The structure of financial assistance—offering full support up to ₹1 crore and partial support beyond—implies which of the following policy intentions?
(a) Encouraging only large-scale corporate investments
(b) Minimizing financial risk for early innovators and startups
(c) Restricting innovation to government institutions
(d) Shifting research focus away from medical devices

View Answer  

Ans: (b)
Sol: The tiered support mechanism ensures that small innovators face lower financial risk, thereby promoting grassroots research participation.

Q5: The collaboration clause in the scheme primarily aims to:
(a) Reduce bureaucratic control over the pharmaceutical sector
(b) Merge public and private R&D entities for faster innovation outcomes
(c) Eliminate academic involvement in industrial research
(d) Centralize innovation under government-run laboratories

View Answer  

Ans: (b)
Sol: The scheme encourages joint efforts between startups, industry, and reputed research institutions to leverage collective expertise and resources.