India's ambition to emerge as a global hub for drug discovery and biomedical innovation could be constrained by gaps in funding, regulatory support and collaboration between academia and industry, according to a new whitepaper released by Dr Reddy's Laboratories.

The report, titled ‘Translational Research Ecosystem: Learnings from the World & Building for India’, argues that while the country has built strong capabilities in scientific research and pharmaceutical manufacturing, it continues to struggle in converting laboratory discoveries into commercially viable therapies and healthcare technologies.

India accounts for around 20% of the world's generic drug supply by volume, yet has produced relatively few globally marketed novel drugs, reflecting the challenges of moving discoveries from laboratories to patients. The paper comes as India seeks to move beyond its traditional strength in generic medicines and build a larger presence in discovery-led research, biotechnology and advanced therapeutics, areas that require stronger links between academic research, funding, clinical development and commercialisation.

India's biotechnology industry is projected to grow from about $165 billion in 2024 to $300 billion by 2030, according to government estimates, increasing the need for stronger mechanisms to convert scientific research into commercial products and therapies.

The whitepaper identifies what it calls a fragmented pathway between early-stage scientific discovery and clinical development, resulting in promising innovations failing to reach patients. It points to persistent bottlenecks including funding shortages, lengthy regulatory processes and limited engagement between researchers, industry, healthcare institutions and investors.

"India stands at a critical inflection point in its innovation journey. To realise our ambition of becoming a global discovery hub, we need a step change, from incremental progress to innovation at scale," Satish Reddy, Chairman of Dr Reddy's Laboratories, said in the report. "This requires stronger translational research pathways to ensure that scientific discoveries translate into meaningful patient impact."

Translational research refers to the process of moving scientific discoveries from laboratories into clinical applications, medicines and healthcare solutions. According to the report, India has many of the foundational elements needed to build a stronger innovation ecosystem but lacks the mechanisms required to connect research, development, regulation and commercialisation.

The report comes as the government seeks to strengthen research commercialisation and industry-academia collaboration through the Anusandhan National Research Foundation (ANRF), which aims to catalyse greater public and private investment in research and innovation.

Among the recommendations, the report calls for greater collaboration between universities, pharmaceutical companies, hospitals, funding agencies and government bodies. It also advocates expanding dedicated funding mechanisms to support innovations through the lengthy development cycle and strengthening regulatory capabilities through structured programmes or centres of excellence focused on innovation.

The report further highlights India's large hospital networks, patient pools and real-world clinical data as underutilised assets that could help accelerate medical innovation if integrated more effectively into research and development pathways. Industry experts have often pointed out that India accounts for a relatively small share of global clinical research activity despite having one of the world's largest patient populations, underscoring the need for stronger translational research infrastructure.

It argues that the success of the ecosystem should ultimately be measured by the number of innovations that reach patients and improve health outcomes rather than by research output alone.

The findings are based on discussions held during the third annual roundtable convened by Dr Reddy's ahead of the Dr Anji Reddy Memorial Lecture Series. Participants included former WHO Chief Scientist Dr Soumya Swaminathan, ANRF Chief Executive Officer Shivkumar Kalyanaraman, BITS Pilani Vice-Chancellor V Ramgopal Rao and other experts from academia, healthcare and industry.

Published on: Jun 25, 2026 11:11 AM IST