RT team
The Indian healthcare innovation market is poised for substantial growth, with projections indicating a doubling to $60 billion by fiscal year 2028, as outlined in a report by Bain & Company and HeathQuad. Factors such as rising consumer demand, global shifts in the healthcare value chain, advancements in scientific and technological capabilities, and favorable regulatory conditions are anticipated to drive this expansion, according to the report titled ‘Healthcare Innovation in India.’
In the fiscal year 2023, the healthcare innovation market accounted for $30 billion, representing 15% of the overall Indian healthcare market, which stood at approximately $180 billion. While pharma services and healthtech dominate the innovation landscape, emerging sectors like biotech and medtech show promising growth trajectories.
The pharma services market, valued at $16 billion in FY 2023, witnessed substantial revenue generation from exports, particularly from contract development and manufacturing organizations (CDMOs). The healthtech sector, which surged to $7 billion in the same period, garnered significant momentum due to the COVID-19 pandemic and the increasing demand for healthcare efficiency solutions.
Vaccines and biotech, constituting a $4 billion market, experienced notable growth, largely driven by India’s robust vaccine manufacturing capabilities, catering to a significant portion of the global demand. However, India’s medtech industry, valued at $11 billion, heavily relies on imports, with local players gradually gaining traction.
Investments in the healthcare sector have been consistent, with a predominant focus on seed and early-stage venture capital rounds. Notable investments include PharmEasy and HealthifyMe. Despite the growth prospects, challenges such as investor caution amid macroeconomic uncertainties and the need for sustainable business models persist, potentially leading to consolidation within the industry.
