According to a joint report by Bain & Company and HeathQuad, India’s healthcare innovation market is poised to double to US$ 60 billion by fiscal year 2028. Rising consumer demand, global healthcare value chain shifts, advancements in Indian scientific capabilities, and favourable regulatory conditions fuel this growth. In FY23, the overall Indian healthcare market reached US$ 180 billion, with healthcare innovation accounting for US$ 30 billion, representing 15% of the market. While pharma services and health tech dominate innovation, emerging areas like biotech and MedTech show promise.
Key highlights include the pharma services market reaching US$ 16 billion in FY23, with 85-90% of revenue from exports, and the health-tech market more than doubling to US$ 7 billion, capturing 25% of the healthcare innovation space. Vaccines and biotech, valued at US$ 4 billion, constituted 15% of the total innovation market. India’s MedTech industry, a US$ 11 billion market, garnered 80% of its revenues from imports. Investment patterns in the healthcare sector have remained consistent, focusing on positive unit economics and operational efficiencies, especially in enterprise-facing segments. The report also anticipates potential consolidation across segments for smaller businesses lacking sufficient funding or a clear path to profitability.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.