India is becoming a leader in healthcare innovation, with a $30 billion sector set to reach $60 billion by 2028. This exciting growth is driven by a solid basis in well-established industries like pharma services and increased interest in cutting-edge fields like biotech and medtech.
An Expanding Market
A recent Bain & Company and HealthQuad analysis predicts a bright future for Indian healthcare innovation. Indian healthcare is expected to reach $320 billion by FY28 at 12% CAGR. Healthcare innovation is predicted to double in four years from 15% share.
Beyond Economic Efficiency in Innovation
Experts like Bain & Company partner Aarthi Rao say affordability, an Indian market advantage, won’t drive this expansion alone. We expect corporate innovation to grow, notably in biotech, medtech, and vaccines. Diversity will make India a leader in creative healthcare solutions.
Healthcare Innovation: A Multifaceted Gem
The four main components of the Indian healthcare innovation ecosystem are:
- Pharma Services: Include pharma IT (excluding healthtech), CROs, and CDMOs. India is the world’s second-largest small molecule CDMO market.
- Biotech and Vaccines: From $1.2 billion in FY20 to $4 billion in FY23, this business has increased significantly. India manufactures 60% of the world’s vaccines, which is important. Biotech businesses are also researching gene therapy and next-generation sequencing to build cutting-edge products.
- Medtech: The demand for cutting-edge medical devices is projected to grow this industry.
- Healthtech: The epidemic has doubled this fast-growing business since 2020. Telemedicine, e-pharmacies, and e-diagnostics are growing, and half of the market is consumer-facing healthtech.
India’s Value Chain Rise
Charles-Antoine Jannsen, Managing Partner of healthcare venture capital firm HealthQuad, highlights India’s healthcare sector transformation. India, once known for its API production, is now focusing on biological research. Increased production allows India to create new biological therapies and find new ones.
Unexpected Pandemic Rise
COVID-19 was a major health threat, but it also spurred healthcare innovation. Social separation accelerated telemedicine and e-pharmacy adoption in the healthtech sector.
Looking Ahead: Future Prospects
India’s robust infrastructure, government support, and rising scientific graduates stimulate innovation. India’s focus on innovative and cheap healthcare solutions makes it a global leader. With targeted investments and continuous research and development, India’s healthcare innovation may transform domestic healthcare and contribute to global health advances.
