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The company said it would start its operations by introducing and marketing its innovative hospital products and exploring other research opportunities in the country.
"We would be looking at the therapeutic areas of oncology, neurological disease and metabolic diseases like diabetes for research in India," he said.
The company is also working on AIDS vaccine, he added. He said the company may consider the option of shifting global clinical trials, like those of diabetes molecule to India.
Tauro, however, declined to comment on the budget earmarked for research purposes in India. Globally, Merck had spent $3.5 billion on research and development.
He also said while the company was open to marketing tie-up with companies in India, MSD India was not looking at research and development alliance.
At present MDS India has an employee strength of 25.