Having closely observed India’s economic and technological transformation over the last  decade, I believe that one of the most significant and strategically consequential developments is India’s emergence as a global HealthTech and bioinnovation powerhouse. India is no longer merely the “pharmacy of the world,” supplying affordable generic medicines and vaccines. It is now rapidly evolving into a centre of innovation spanning biotechnology, artificial intelligence in healthcare, genomics, precision medicine, and digital health platforms.

This transformation is not accidental. It is the result of deliberate government policy, a highly skilled scientific workforce, world-class digital public infrastructure, and a vibrant entrepreneurial ecosystem. 

India’s bioeconomy has grown dramatically from approximately USD 10 billion in 2010 to about USD 165 billion in 2024, according to Government of India and Biotechnology Industry Research Assistance Council (BIRAC) estimates. This remarkable expansion demonstrates both India’s capacity for innovation and its growing importance in the global healthcare ecosystem.

At the same time, India’s future leadership in HealthTech will depend on how effectively it addresses structural challenges including research funding gaps, regulatory reforms, and healthcare access disparities.

Generic Manufacturing to Innovation Leadership

India’s global healthcare journey initially began with generic pharmaceutical manufacturing. Today, India supplies approximately 20 percent of the world’s generic medicines by volume and meets about 60 percent of global vaccine demand. This manufacturing capability provided India with scale, technical expertise, and international credibility.

However, the transformation now underway is far more profound. India is increasingly becoming a center for original research, biotechnology innovation, and advanced therapeutics. The number of biotechnology startups has increased from fewer than 1,000 in 2015 to more than 10,000 by 2024. This growth reflects a shift from imitation to innovation.

Companies such as Biocon have developed globally competitive biosimilars for cancer and diabetes. The Serum Institute of India became globally recognized for producing hundreds of millions of COVID-19 vaccine doses. Bharat Biotech developed India’s indigenous COVID-19 vaccine, demonstrating India’s capability to innovate under crisis conditions.

Equally important is the emergence of contract research, drug discovery services, and advanced biologics manufacturing. Cities such as Bengaluru, Hyderabad, and Pune have become global hubs for biotechnology research and innovation.

Digital Public Infrastructure as Strategic Foundation

One of India’s most decisive advantages in HealthTech is its digital public infrastructure. India has built one of the most sophisticated digital ecosystems in the world, including Aadhaar digital identity, Unified Payments Interface (UPI), and now the Ayushman Bharat Digital Mission (ABDM).

The Ayushman Bharat Digital Mission represents a transformational initiative. More than 500 million digital health IDs have already been created, enabling individuals to store and share their medical records securely. Hospitals, laboratories, physicians, and insurance providers are increasingly integrated into this digital framework.

This digital foundation creates unprecedented opportunities for innovation. Artificial intelligence systems can analyze large datasets to detect disease patterns, predict outbreaks, and improve clinical decision-making. Telemedicine platforms are expanding healthcare access to rural and underserved populations.

India’s digital health ecosystem also enables scalable solutions that can serve hundreds of millions of citizens efficiently. This is particularly important for a country with India’s population size and diversity.

Developed of AI Tools

India’s strengths in information technology and software engineering provide a natural advantage in AI-driven healthcare innovation. Artificial intelligence is already being deployed in India for medical imaging, cancer detection, cardiovascular risk prediction, and disease surveillance.

Indian startups and research institutions are developing AI tools capable of detecting tuberculosis from chest X-rays, diagnosing diabetic retinopathy, and predicting early-stage cancer. These technologies significantly improve diagnostic accuracy while reducing costs.

Genomics and precision medicine represent another frontier where India is making meaningful progress. India’s large and genetically diverse population provides valuable insights for developing targeted therapies.

For example, indigenous CAR-T cell therapies for cancer treatment have been developed in India at a fraction of global costs. This has the potential to democratize access to advanced cancer treatments.

India’s integration of biotechnology, artificial intelligence, and data science represents a powerful convergence that few countries can replicate at scale.

Startup Ecosystem, Entrepreneurial Momentum

India’s startup ecosystem has become one of the largest and most dynamic in the world. HealthTech startups are playing a critical role in transforming healthcare delivery, diagnostics, and drug discovery.

These startups are innovating across multiple areas including telemedicine, wearable health monitoring devices, digital therapeutics, AI-based diagnostics, and clinical research technologies.

Initiatives such as Startup India, Digital India, and BIRAC funding programs have provided essential support. Biotechnology incubators across India are enabling entrepreneurs to convert research ideas into commercially viable products.

India’s cost advantage is also significant. Research and development costs in India can be 30 percent to 60 percent lower than in the United States or Europe. This cost efficiency makes India an attractive destination for global pharmaceutical companies and investors.

Global Capability Centers established by multinational corporations in cities such as Bengaluru and Hyderabad are increasingly conducting advanced research in drug discovery, bioinformatics, and molecular biology.

India’s Strategic Advantages

India occupies a uniquely strategic position in global healthcare for several reasons. First, India offers cost-efficient innovation. Treatments developed in India are often significantly more affordable than those developed in Western countries.

Second, India possesses a massive manufacturing scale. It is one of the largest producers of vaccines, biosimilars, and generic medicines globally.

Third, India has a highly skilled scientific workforce. Indian scientists, engineers, and physicians are globally respected and increasingly contributing to domestic innovation.

Fourth, India’s digital infrastructure enables rapid deployment of scalable healthcare solutions.

Finally, India’s large population provides valuable clinical data for research and development.

These advantages position India as a critical partner for global pharmaceutical companies, biotechnology firms, and healthcare innovators.

Government as Policy Enabler

The Government of India has played a central role in enabling this transformation. Several initiatives have been particularly important. The Biotechnology Industry Research Assistance Council provides funding, mentorship, and commercialization support to biotech startups. The National Biopharma Mission supports development of vaccines, biologics, and medical technologies. The Production Linked Incentive scheme encourages domestic manufacturing of pharmaceuticals and medical devices. The Ayushman Bharat Digital Mission is creating a unified digital healthcare ecosystem.These initiatives demonstrate a clear strategic vision to position India as a global leader in biotechnology and HealthTech.

Structural Challenges and Constraints

Despite its remarkable progress, India faces several structural challenges. One of the most significant challenges is low research and development spending. India spends approximately 0.7 percent of GDP on research and development, compared to over 2.5 percent in the United States and China. Increasing investment in scientific research is essential for sustaining innovation.

Healthcare infrastructure disparities between urban and rural areas also remain a major concern. While major cities have world-class hospitals, rural areas often lack basic healthcare facilities. Regulatory complexity can also slow innovation. Simplifying approval processes while maintaining safety standards would help accelerate progress.

Talent retention is another important issue. Many highly skilled Indian scientists work abroad. Creating attractive research opportunities within India can help reverse this trend. Data privacy and cybersecurity will also become increasingly important as digital health platforms expand.

Opportunities in Medical Tourism

India’s rise in HealthTech presents enormous opportunities for global collaboration. India can become a global hub for AI-driven drug discovery, precision medicine, and clinical research. International pharmaceutical companies are increasingly establishing research centers in India. It also has the potential to lead in affordable biologics and advanced therapies.

Medical tourism represents another major opportunity. India offers high-quality medical care at significantly lower costs compared to Western countries. India’s digital health platforms could also serve as models for other developing countries. In my view, India is uniquely positioned to become a global center for scalable, affordable healthcare innovation.

Strategic Roadmap for Future Leadership

To fully realize its potential, India must focus on several strategic priorities. Research and development investment must increase significantly. Public and private sector collaboration should be strengthened. Regulatory processes should be streamlined while maintaining safety standards. Healthcare infrastructure must be expanded in rural areas. Advanced research in genomics, artificial intelligence, and biotechnology must be prioritized. International collaboration should be encouraged. These measures will help India transition from a healthcare manufacturing hub to a global healthcare innovation leader.

Shaping Future of Global Healthcare Innovation.

Today, in 2026, India stands at a historic moment in its healthcare and technological evolution. The convergence of biotechnology, artificial intelligence, digital infrastructure, and entrepreneurship has created unprecedented opportunities. India’s strengths in scientific talent, digital infrastructure, and cost-efficient innovation position it to become one of the world’s most important centres for healthcare innovation. However, sustained leadership will require continued investment, regulatory reform, and strategic vision.

Based on my close observation of India’s technological progress and global positioning, I am confident that India has the capability not only to transform its own healthcare system but also to play a defining role in shaping the future of global healthcare innovation.

India’s emergence as a HealthTech and BioInnovation powerhouse is not merely a national achievement. It is a development of global significance that will benefit billions of people worldwide.

References:

1.Government of India, Department of Biotechnology. 

2. India BioEconomy Report 2024.

Biotechnology Industry Research Assistance Council (BIRAC). Annual Report and Bioeconomy Growth Data, Government of India.

3. Indian Brand Equity Foundation (IBEF). Biotechnology Industry in India Report 2024.

4. NITI Aayog, Government of India. Strategy for New India and National Digital Health Mission Policy Documents.

 

(The author holds a dual masters degree from Europe and the US and is an ex-international corporate banker currently serving as Visiting Professor in international marketing at a university in Bengaluru, India. Views expressed are personal. He can be reached at rameshkumarn180@gmail.com )