For the last few decades, the Indian healthcare industry has been following a growth trajectory. India’s medical innovation landscape is evolving, presenting a significant $30 billion opportunity driven by pharmaceutical services and health tech.
A report by Bain & Company, released earlier this year, forecasts that this sector could nearly double to approximately $60 billion by FY 2028. Several factors, including the consumerization of health, the reconfiguration of the global healthcare value chain, and the deepening expertise in Indian science and technology propel this growth.
Industry leaders look at what’s driving this change and the opportunities ahead.
Robust Research & Development
According to the report, as many as 12 of the top 20 global pharma companies have established global capability centres (GCCs) in India. “India’s emergence as a medical innovation hub is fuelled by a trifecta – robust R&D, cutting-edge technology adoption, and an unwavering focus on quality. To solidify this position, continued investment in innovation, fostering academia-industry collaboration, and streamlined regulatory pathways are crucial,” said Sushil Suri, Chairman & Managing Director, Morepen. He further highlighted how his organization is actively contributing to this momentum by pioneering advancements in R&D and manufacturing. “We believe India has the potential to redefine healthcare on a global scale,” he added.
Cost-Effectiveness and Skilled Workforce
India’s growth as a leader in medical innovation stems from its cost-effective research capabilities, skilled workforce, and supportive governmental policies. “And to sustain this momentum, investing in advanced infrastructure, streamlining regulations, and fostering collaboration are crucial,” said Sanjay Vyas, President, Safety & Logistics and Country Head of India, Parexel. Companies like Parexel are focused on enhancing clinical research efficiency while maintaining high standards, thereby contributing to India’s growing reputation in the global healthcare landscape.
Local Manufacturing and Technological Integration
The integration of advanced technologies, such as AI and machine learning, into healthcare delivery will continue to enhance diagnostics and patient monitoring, streamlining healthcare processes, and making them more efficient and patient-centric. According to Dr Rajeev Gautam, Corporate Officer- HORIBA Ltd, Japan and President, HORIBA India, initiatives like ‘Make in India’ encourage local manufacturing, especially of medical equipment. “India’s experience in pharmaceuticals and its vast talent pool makes the country a prime candidate for affordable healthcare solutions. With India excelling as a software hub, technological innovations related to AI are booming in healthcare. By combining traditional practices with modern technology, India can enhance domestic care and address global health challenges effectively,” said Gautam.
Public-Private Partnerships
India’s emergence as a global healthcare innovation powerhouse is fuelled by a large combination of factors but strategic partnerships need special attention. “Besides the vast talent pool, increasing R&D investments, a growing patient population, and a supportive government ecosystem, strategic partnerships are crucial,” said Nikkhil Masurkar, CEO, Entod Pharmaceuticals. He further explained that to sustain this momentum, we must prioritize public-private partnerships that focus on affordable and accessible healthcare solutions, create an innovation-driven research ecosystem, and invest heavily in digital health technologies. “India has the potential to become the world’s leading pharmaceutical manufacturing hub, research centre, and healthcare provider, and we are committed to leading this transformation,” he added.
Significance of the Startup Sector
The Indian government has implemented several strategic initiatives that bolster the healthcare innovation landscape. “India is uniquely positioned to lead healthcare innovations globally through initiatives like integrated digital health infrastructure (such as Ayushman Bharat Digital Mission); high number of US FDA-approved pharmaceutical manufacturing plants, availability of a robust science graduate workforce, improvement in capacity, capability, and quality by the Indian pharma players. Also, healthtech, encompassing more than 10,000 start-ups, will continue to be a hub of innovation over the coming years,” said Neha Sinha, Co-founder and CEO Epoch Elder Care. Policies aimed at promoting local manufacturing and increasing investment in R&D are critical, besides financial aid for supporting the health tech sector and facilitating patient-centric innovations.
Digital Transformation and Advanced Therapeutics
As the healthcare sector evolves, India is expected to see an increased focus on digital transformation and advanced therapeutics, including fields like omics (Omics refers to a pool of technologies that are used to measure and functionally characterize different biomolecules in cells or tissue). “At the moment there are over 3,500 health tech start-ups in India, leading innovations spanning from platforms to monitor health conditions, apps using AI to detect illnesses and diseases, to those connecting patients with doctors, and more. To further grow, appropriate government policies and financial aid towards patient-centric innovations are required. This can further foster digital transformations across the healthcare ecosystem, and advanced therapeutics (eg Omics) will help India be a global leader,” said Gautam Khanna, CEO, P.D. Hinduja Hospital & Medical Research Centre.
It’s evident that India is on the cusp of becoming a global leader in healthcare innovation and addressing key ecosystem issues will be critical to unlock the next wave of growth.
Disclaimer: Content Produced by ET Edge
