The Indian healthcare space has been gaining prominence on the global platform due to its stellar performance and strategic initiatives in 2024. Things are shaping for India is on the home stretch to achieving UHC by 2030 driven by a confluence of dynamic forces which includes digital health innovations, proactive government policies and increased health awareness. India’s healthcare space has evolved as a distinguished player focusing on innovation, skill development and advanced technology solutions to render top-end healthcare services. The sector indeed has immense value potential and is a key lynch pin in driving the nation's economic growth.
By Sonali Patranabish
Highlights of 2024
The tale of the Indian healthcare sector in 2024 is gripping and compelling. The story of India's shining healthcare sector is one of tremendous progress, significant milestones and undeterred commitment towards shaping a robust healthcare ecosystem for the greater good.
Increased healthcare expenditure, improved incentives, initiatives, rapid innovation and integrated infrastructure, have been a few of the key drivers behind the rampant growth of the healthcare sector which consists of hospitals, medical devices, health insurance and medical technologies.
India in the last year has also emboldened its stance towards attaining the sustainable development goals (SDG) laid down by the UN. 2024 has been a year dotted with many highs- from seamless healthcare delivery to building a robust and resilient healthcare ecosystem amidst uncertainties, this year has been all about refocusing and reshaping.
Despite monumental challenges, our nation has made huge strides in progressing towards carving a resilient future.
In a bid to achieve Universal health coverage, 2024 saw all stakeholders coming together by wholly contributing towards ensuring equity, accessibility and affordability of healthcare services. Strategic initiatives and thought-through collaborations of public and private players have laid the groundwork for creating an inclusive healthcare ecosystem furthering improved public health. The rise of India's vibrant healthcare system in the last year has also been attributed to lucrative schemes, and initiatives by the government in a bid to reduce out-of-pocket expenditure, in turn reducing disparity in healthcare. Proactive policies and reforms have also furthered India’s vision of achieving UHC by 2030.
Remarkable improvements in key health indicators like infant mortality rates, neonatal deaths and maternal mortality rates indicate India's growing stand towards achieving improved service delivery. The year 2024 also saw the healthcare infrastructure undergo significant expansion in the form of PHCs and CHCs. The establishment of Ayushman Aarogya Mandirs, the surge in the number of government hospitals, capacity expansion of hospitals are efforts that underscore our nation's vision in improving healthcare accessibility.
The thriving healthcare landscape has also been attributed to the substantial increase in the number of registered HCPs which includes nurses, surgeons, allopathic doctors and AYUSH doctors. Strengthening the manpower in healthcare has played a pivotal role in improving workforce mobility helping to bridge the urban-rural divide. Taking Cognizance of the fact that Capacity building is crucial to a flourishing healthcare system, the nation has also seen an increase in the number of medical colleges which in turn aims to ensure improved penetration of healthcare services to rural areas.
The footfall of tourists for medical purposes has tremendously increased, elevating India to the stature of a prime hub for medical value travel. The growth in India's medical tourism sector has not only boosted economic growth but also positioned India as a brand in the global arena.
Digital health technologies have been a shot in the arm for the Indian healthcare space. These new-age technologies have revolutionised healthcare by way of creating seamless channels for healthcare delivery and communication between stakeholders.
Touted as the nation's sunrise industry, the medical devices industry has grown phenomenally. The growth of this sector is a testament to India's emergence as a self-reliant nation. This is about its manufacturing capabilities, this has led to a concomitant increase in exports adding to the nation's economic pool. Cost-effectiveness and advanced R&D capabilities are a few of the elements that have propelled the industry further.
Industry-wise Highlights 2024 from Experts
Medical technology
Anish Bafna, CEO and MD, Healthium Medtech
Over the past year, India’s Medtech sector has made remarkable progress, driven by a skilled workforce, cost-effective operations, technological innovation and strong government support for local manufacturing. The increasing prevalence of chronic diseases, an ageing population and a growing focus on preventive healthcare have further accelerated the growth. The integration of smart connected care, new advances in diagnosis and therapy into new settings and the improvement of clinical outcomes will continue to shape the market for medical devices for years to come. The growing predominance of smart medical devices, digital therapeutics, AI-based solutions, predictive data analytics and wearable technology will remain an area of growth.
For India to become a global manufacturing hub, it must capitalise on its strengths and focus on growing its domestic market. Captive consumption of locally made products is crucial, as low-capacity utilization will undermine unit economics. In the next four to five years, India must build a comprehensive ecosystem. The industry will continue to call for stronger alliances, smarter use of technology and a lucid framework for the policy ecosystem.
From instituting more medical device parks and special economic zones (SEZs) across the country, partnering with the industry and academia to address skill gaps amongst surgeons and rationalising existing custom duties and rebates on export incentives, India is on course to be the next manufacturing powerhouse for the world.
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Ankit Anand, Founding Partner, Riceberg Ventures
2024 has been a year of growth and change for India's MedTech and lifesciences sectors. With an increase in investment and a wave of innovation, especially in diagnostics, therapeutics, and monitoring, the sector is making significant advances. Startups have attracted noteworthy funding, which is driving the development of AI-powered solutions, personalised medicine, and next-generation therapies.
AI-driven technologies like those from Orange Health Labs and Neuranics are reshaping how healthcare is delivered, offering faster and more accurate diagnostics. Overall, this year highlights the importance of digital integration, next-gen therapies, and the role of startups in shaping India's healthcare future.
This year saw impressive milestones for MedTech and Lifesciences startups. Qure.ai raised $65 million in Series D funding, indicating the growing investor confidence in AI health tech solutions.
Other companies making waves include Neuranics, which raised $700K, and Orange Health Labs, which secured $12 million. Theranautilus, a deep-tech startup focused on nanorobotics for healthcare, raised $1.2 million in seed funding. These achievements show that MedTech and life sciences innovation is attracting significant financial backing.
The MedTech and Lifesciences sectors are seeing exciting advancements, especially in the realm of diagnostics. AI-driven diagnostic tools, like those from Qure.ai, re making a significant impact by improving the accuracy and speed of diagnoses, ultimately helping healthcare providers deliver better care faster. In addition, Theranautilus is developing nanorobotic solutions that hold great potential to revolutionise precision medicine, offering highly personalised treatment options. In diagnostics, there's also a strong focus on early detection technologies that aim to catch diseases at their earliest stages, when treatment is most effective. These innovations are not only improving outcomes but also making healthcare more proactive and tailored to individual needs.
One of the most significant hurdles is overcoming the complex regulatory environment, which can delay market entry. Additionally, MedTech startups often struggle to gain trust from clinicians and insurers, particularly when competing with traditional players. The high costs associated with customer acquisition and the need for clear, demonstrable cost savings are also barriers to growth. The path to reimbursement for innovative diagnostic and monitoring tools continues to be an ongoing challenge.
2024 has seen robust investments in India's MedTech and Life Sciences sectors. Major rounds include Qure.ai’s $65 million Series D and Orange Health Labs’ $12 million raise, signalling growing confidence in healthcare innovation. As reported by Bain & Company, healthcare innovation in India is a $30 billion opportunity and is expected to double by FY 2028. India’s medical device market, valued at $12 billion, is projected to reach $50 billion by 2030 (EY India). This surge in funding and investment is vital to support the continued growth and development of new healthcare solutions.
In 2024, consolidation and strategic partnerships have been key drivers of growth. For instance, Healthium MedTech's $843 million acquisition by KKR Asian Fund IV was a notable exit. Multinational corporations are increasingly collaborating with Indian firms, transferring intellectual property, and tapping into the country’s manufacturing and R&D strengths. This trend is expected to continue, accelerating innovation, and helping Indian MedTech companies expand their reach globally.
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Lifesciences
Vishal Goel, Managing Director, RX Propellant
India’s life sciences sector continues to grow by leaps and bounds, underpinned by its rapid bioeconomy expansion from $10 billion in 2014 to over $130 billion in 2024, with projections exceeding $300 billion by 2030. The country has established itself as a global biotechnology hub, contributing an anticipated 19 per cent to the global biotechnology market by 2025.
The biologics market alone is forecast to grow to $12 billion by the same year, showcasing an impressive CAGR of 22 per cent.
Key drivers include a rising elderly population, set to reach $347 million by 2050, intensifying the need for advanced therapeutics and biotechnology solutions. India’s skilled talent pool—comprising innovators, researchers, and healthcare professionals—continues to attract global investments, supported by initiatives such as the BioE3 Policy and PLI schemes, designed to bolster biomanufacturing capabilities.
The sector's evolution is also marked by advancements in biosimilars, with Indian firms increasingly capturing global markets as biologics worth over $200 billion go off-patent by 2030.
Strategic adoption of biofoundries, artificial intelligence, and digital automation is enhancing production efficiencies and scaling innovation.
Collaboration between public and private sectors, integration of advanced technologies, and India’s cost-effective infrastructure underscore its ability to lead in delivering affordable healthcare solutions.
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Healthcare Financing and Insurance
Sidak Singh, Co-Founder, Care.fi
India has emerged as the fastest-growing Fin-tech market in the world. As of 2024, it is estimated to be around $110 billion. This growth has revolutionised not only the fin-tech sector but also created transformative opportunities in critical sectors like healthcare. By enabling seamless access to financial solutions, the integration of fintech in the healthcare ecosystem has enhanced operational efficiency, expanded accessibility and driven cost-effective innovations. The convergence of finance and technology is helping healthcare providers in India to focus on superior patient care while fostering a future wherein financial constraints can no longer hinder medical advancements.
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Hospital Sector
Dr Nageshwar Rao, Cluster CEO, Gleneagles Hospital (Chennai and Hyderabad)
2024 has been a transformative period for the hospital sector in India. With advancements in medical technology, integrated healthcare models, and a patient-centric approach, hospitals have been at the forefront of delivering accessible and quality healthcare.
This year underscored the critical role of digital health in streamlining operations and enhancing patient outcomes. Technologies such as AI-driven diagnostics, telemedicine, and electronic health records have become integral to hospital workflows. The increasing adoption of precision medicine has also redefined treatment protocols, especially in oncology and cardiology. Hospitals across India have made significant strides in handling complex procedures such as robotic-assisted surgeries and multi-organ transplants. At Gleneagles Hospital, milestones include successfully expanding our heart and lung transplant programs and adopting minimally invasive surgical techniques, reducing recovery times and improving patient satisfaction.
While innovations in medtech and therapeutic procedures have raised the standard of care, roadblocks such as regulatory delays and the rising cost of imported medical equipment have posed challenges. Another critical area of focus has been workforce shortages, emphasising the need for continuous training and upskilling.
2024 witnessed robust investments in expanding hospital infrastructure, particularly in Tier II and Tier III cities. Public-private partnerships have played a pivotal role in bridging gaps in critical care and diagnostics. The rise of mergers and acquisitions has also fuelled operational synergies and accelerated technology adoption.
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Healthcare Infrastructure
Dr Vivek Desai, Founder and Managing Director, HOSMAC
2024 has been monumental for the Indian healthcare landscape, marked by strides across infrastructure, policy, and private investment.
The government's ambitious push to create infrastructure for an additional 75,000 seats at medical colleges has been pivotal, supported by the entry of notable institutions like Azim Premji University, IISc, and IITs into medical education. This expansion is vital for addressing the chronic shortage of healthcare professionals, particularly in nursing and paramedical training, which remain critical gaps.
Ayushman Bharat, India's flagship universal healthcare program, has cemented its position as a cornerstone of healthcare access, transitioning from a ‘provider’ to a ‘payer’ model.
Complementing this is the Ayushman Bharat Digital Mission (ABDM), which has rapidly advanced the digitisation of health records, ensuring seamless treatment for emergency patients while enhancing healthcare accessibility and efficiency.
Private equity investments have also played a transformative role, with nearly 50 per cent directed towards hospitals. This influx of capital has propelled hospital chains into Tier II and III cities, bridging the urban-rural divide. Noteworthy developments include the leveraged merger of Care and Aster Hospitals and the proposed acquisition of HCG Cancer Hospitals by KKR.
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Ravideep Singh, Associate Director at Creative Designer Architects,(CDA)
India’s healthcare sector in 2024 has been marked by significant milestones, bolstered by strong growth and strategic investments. The sector registered an impressive compound annual growth rate (CAGR) of 12.59 per cent, reflecting its resilience and potential. Key drivers include enhanced policy frameworks, increased foreign investments, and a robust demand for quality healthcare services.
Foreign direct investment played a pivotal role, with Singapore’s GIC injecting $150 million into Asia Healthcare Holdings, a testament to the confidence in India’s single-specialty healthcare market. India also led the Asia-Pacific region in healthcare deal value, attracting $4.6 billion in investments in 2023 alone. Meanwhile, the pharmaceutical sector showed remarkable progress, with export sales projected to grow by 11 per cent to over $31 billion. Projections estimate the domestic pharmaceutical market will surpass $120 billion by 2030, fueled by innovation and government support.
The government’s commitment to the sector is evident in its 2024-25 healthcare budget, which rose by 2 per cent to Rs 90,958 crore. This increase focuses on infrastructure development, maternal health, and child welfare. Initiatives such as the National Medical Devices Policy aim to bolster domestic manufacturing capabilities.
Hospital chains also expanded, with Apollo Hospitals reporting a 63 per cent rise in net profit for Q2 2024 and Max Healthcare acquiring a 64 per cent stake in Jaypee Healthcare. These developments underscore a growing trend toward consolidation and modernisation within the sector.
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Medical Tourism
Rajeev Taneja, Founder, Globalcare Health
The growth of India’s medical consulting and medical tourism sector in 2024 is set to redefine the global healthcare landscape. With projections pointing to significant expansion in the coming years, the global medical tourism market, valued at $24.14 billion in 2023, is expected to reach $29.26 billion in 2024 and soar to $137.71 billion by 2032. India, emerging as a hub for world-class medical services and cost-effective treatments, is positioning itself as a key destination for international patients seeking advanced care. This shift is reshaping the global medical tourism industry, enhancing accessibility, patient experience, and affordability.
By integrating modern technologies and collaborating with healthcare professionals globally, India has become a central player in the international healthcare ecosystem.
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Healthcare Startups
Priyadarshi Mohapatra, Founder & CEO, CureBay
2024 marked significant strides for India’s health-tech sector, showcasing the role of tech and innovation in addressing critical gaps in accessibility and quality of healthcare. Advancements in telemedicine and AI-powered solutions helped extend care to underserved areas, underlying technology’s transformative potential. Initiatives such as remote diagnostics and wearable health monitors gained traction, bridging urban-rural healthcare divides. However, challenges such as inadequate infrastructure, limited digital literacy, and data security concerns persisted, highlighting the need for systemic improvements.
Investment activity in health tech remained robust this year, with increased funding flows into startups offering telehealth, wearable health monitors, and AI-driven analytics solutions. These investments signalled growing confidence in the sector’s ability to scale and generate measurable impact. At the same time, mergers and acquisitions brought synergies that streamlined operations and expanded the reach of services, especially in the fragmented healthcare market.
Despite progress, 2024 emphasised the importance of aligning health-tech innovations with broader healthcare systems. Public-private partnerships and regulatory clarity remain essential to building a patient-centric and inclusive digital health ecosystem. To sustain this momentum, the focus must remain on scaling innovation equitably, fostering collaborations, and building robust infrastructure. The strides of 2024 have laid the groundwork for a transformative era in Indian healthcare, with technology as its backbone.
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Smriti Tandon, Co-founder, Online Chikitsa Mitra
2024 highlighted the transformative power of technology in addressing India’s healthcare challenges, particularly in rural areas. Telemedicine emerged as a key driver of equitable healthcare delivery, breaking barriers of geography, affordability, and limited infrastructure. At the same time, the rising burden of lifestyle diseases such as diabetes and hypertension brought forward the critical need for scalable primary healthcare solutions through public-private collaborations.
A key takeaway this year was the importance of tailoring digital healthcare platforms for rural communities by addressing language barriers and limited digital literacy for greater inclusivity.
Preventive healthcare also gained significant traction, with targeted awareness campaigns and advancements in diagnostics helping to reduce out-of-pocket expenditures for patients.
The rise of digital health platforms in rural areas was among the year’s most notable innovations. Telemedicine e-clinics, such as ours, transformed local medical stores into accessible healthcare hubs, while remote monitoring tools and digital prescriptions provided ongoing care for chronic conditions. Mobile health units and AI-driven diagnostics further expanded healthcare access, particularly in underserved communities, reflecting a shift toward holistic and integrated care models that also emphasised nutrition and prevention.
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2024: Ringing down the curtain
2024 was indeed an eventful year lined with several positive trends which signal India's endeavour to position itself as a distinguished entity on a global platform. Indian healthcare surely has come of age and is set to etch out a space for itself driven by digital innovations and transformative technologies. 2024 also saw the Indian healthcare space become a benchmark for transformation in an attempt to help the nation address its long-standing challenges and realise its vision of achieving its core objectives of equitable access and quality healthcare services.
