Pune: Indian biotech startup founders are calling on the government to rethink its policy approach towards the sector, arguing that entrepreneurs need easier access to funding, faster regulatory approvals and fewer administrative hurdles to develop innovative products and technologies in the country.
The demand for policy changes has gained attention following a series of concerns raised by biotechnology entrepreneurs, including Soham Sankaran, founder and CEO of PopVax, who has called for practical reforms rather than the creation of more committees and consortia. Other Indian biotech entrepreneurs have also highlighted difficulties in securing the long-term capital required to develop innovative products.
In a post on X on Saturday, Sankaran said that “more consortia, panels and committees aren’t going to solve anything” for Indian biotech.
He outlined four measures that he believes could make it easier for startups, research institutions and scientists to undertake research and development (R&D).
His suggestions include faster imports of critical laboratory equipment and reagents, simpler procedures for foreign investments, direct government funding for startup R&D projects and quicker approvals for early-stage clinical trials.
The concerns also reflect a broader challenge for Indian biotech entrepreneurs: developing innovative medicines and technologies requires sustained capital, access to research infrastructure and regulatory processes that accommodate the requirements of research-driven startups.
Lack of Patient Capital Remains a Major Challenge
At a CII Pharma and Life Sciences Summit held recently and reported on September 20, Dr Kavitha Iyer Rodrigues, founder and CEO of Bengaluru-based Zumutor Biologics, had identified the shortage of patient capital as one of the biggest challenges for Indian biotech companies developing novel molecules.
“The pain point has always been money,” she had said.
Rodrigues explained that her company had to establish a cross-border structure and raise capital internationally for work that could otherwise have been undertaken in India.
Her comments point to the financing requirements of biotechnology businesses, where product development can involve extended research timelines and substantial investment before a product reaches the market.
For startups working on novel antibodies and innovative medicines, access to patient capital can be important in sustaining research programmes through different stages of development.
The concerns raised by the founders therefore extend beyond the availability of funding. They also involve the structure of financial assistance, the ability to attract international investors and the availability of an ecosystem that supports long-term scientific research.
Four Policy Changes to Support Indian Biotech Entrepreneurs
Sankaran described his proposals as “simple first steps from the startup side”, emphasising the need to address operational difficulties faced by entrepreneurs.
His first demand is for faster imports and lower duties on critical reagents and scientific equipment. He called for a fast-track mechanism similar to the one available in China, arguing that delays and costs associated with importing essential research materials can affect startup operations.
The second proposal concerns foreign investment procedures. Sankaran said the paperwork and approval requirements for foreign investors making small investments in Indian-incorporated companies make it “nearly impossible” for them to participate.
He specifically highlighted the requirement for a physical PAN card as one of the administrative hurdles that needs to be addressed.
His third demand focuses on the availability of domestic R&D funding. He has called for government funding of ₹10-50 crore for individual research and development projects undertaken by startups, without mandatory matching contributions or repayment requirements.
“The RDI Fund requires at least 50% matching, which small startups typically cannot provide,” he wrote.
According to Sankaran, smaller biotechnology companies may struggle to arrange matching capital, even when they have research projects that require funding.
The fourth proposal relates to clinical development and patient access. He wants faster approvals for Phase I clinical trials involving innovative medicines, alongside quicker compassionate-use and named-patient pathways for patients who have exhausted existing treatment options.
Together, the four proposals cover several stages of biotechnology entrepreneurship, from procuring research materials and raising capital to conducting clinical trials and making innovative treatments accessible.
RDI Fund’s Matching-Finance Requirement Raises Concerns for Smaller Startups
The funding structure of the government’s Research, Development and Innovation (RDI) Fund is one of the key issues highlighted by the PopVax founder.
The ₹1 lakh crore RDI initiative operates under the Department of Science and Technology and the Anusandhan National Research Foundation. The Union Cabinet approved the initiative in July 2025, and the Prime Minister launched it in November 2025.
The Biotechnology Industry Research Assistance Council (BIRAC), one of the second-level fund managers under the initiative, has outlined its financing conditions in a request for proposals.
According to the BIRAC document, financial support is capped at 50% of a project’s assessed cost or a funding round. Applicants are expected to arrange the remaining amount through internal accruals or commercial and private funding sources.
An empowered group of secretaries can relax this limit in exceptional circumstances.
The fund provides support through loans, equity or blended financial instruments of up to ₹200 crore per project. The assistance is explicitly structured as financial support rather than grants and is available to projects at Technology Readiness Level 4 and above.
Sankaran’s proposal differs from the existing structure. He wants the government to provide grants of ₹10-50 crore for individual startup R&D projects without requiring entrepreneurs to arrange matching funds or repay the assistance.
The issue is particularly relevant to early-stage biotech companies, which may need substantial investment to develop novel molecules, vaccines and therapeutic technologies before generating commercial revenues.
Founded in late 2021, PopVax develops mRNA vaccines and therapeutics using computational protein design. Sankaran is a computer scientist who studied at Yale University and left a PhD programme at Cornell University.
In October 2026, PopVax also launched RNA Foundry, a research, development and manufacturing facility in Hyderabad, established with Stochastic Sciences.
The company is also working towards making personalised cancer treatments available through named-patient and compassionate-use pathways outside India by the end of 2026, subject to regulatory approvals.
Government Discusses Faster Approvals, Funding and Infrastructure for Biopharma Startups
The government has also been discussing several of the issues raised by biotechnology entrepreneurs.
On November 3, Commerce and Industry Minister Piyush Goyal held a roundtable with biopharma startups to discuss measures for strengthening the sector.
Goyal had called for faster approvals, improved access to finance and shared infrastructure. The discussions covered streamlined regulations, a proposed regulatory sandbox, single-window clearance mechanisms and faster customs clearance for laboratory equipment and reagents.
