New Delhi: As the year 2024 draws to its end and the country venturing into a year already engulfed with frictions of foreign narratives denouncing global healthcare & climate initiatives, inexorable amplification of AI and surrounding technologies – offering both rewards & risks along with the domestic desires of mitigating TB, curbing the malaria menace and reducing dependency on foreign inputs.
Considering such preludes it’s imperative to assess at the preparedness and progress of Indian healthcare, tasked with creating a self-relaint and resilient healthcare ecosystem aimed at ensuring delivery of services to the last mile with subsequent expansions into the global markets.
Based on several market analyses and expert voices over the last decade, India’s lifesciences sector expanded from $10 billion in 2014 to over $130 billion in 2024, and is further expected to reach $300 billion by 2030.
From a policy perspective, the word ‘cancer’ arguably served as the leitmotif of the year, beginning with the announcement of reduced and exempted customs duties on several cancer medications, followed by a reduction in GST on cancer drugs from 12 per cent to 5 per cent. The year was summarised with the rise of CAR-T therapies, which have become the current buzz among oncologists.
Sharing some insights from the pharma industry, OPPI, Director General, Anil Matai enlisted that, the modification of guidelines for PRIP scheme for promotion of domestic manufacturing of KSMs and API, the notification of the Patent (Amendment) Rules 2024, waivers for Phase 3 clinical trials for certain categories of drugs already approved in well-regulated markets, and the signing of much-awaited Trade and Economic Partnership Agreement (TEPA) with European Free Trade Association (EFTA) states, stood as some of the notable development of this year.
As per Vishal Goel, Managing Director, RX Propellant, 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 USD 12 billion by the same year, showcasing an impressive CAGR of 22 per cent.
“In addition to this with biologics worth over $200 billion going off-patent by 2030 Indian companies are well poised to cash on the opportunity through adoption of biofoundries, artificial intelligence, and digital automation is enhancing production efficiencies and scaling innovation,” he added.
Flagging some of the major challenges observed during the year Dr Suman Katragadda, CEO, Heaps.ai cautioned that, Health insurance penetration in India remains low, with approximately 75 per cent of medical expenses still being paid out-of-pocket. The integration of AI in healthcare is no longer optional, it has become the cornerstone of modern care management and coordination. India is still at an early stage of leveraging the power of AI and data analytics. AI-driven tools like predictive analytics and risk assessment indices can redefine patient care by enabling insurers and healthcare providers to anticipate complications, prevent hospitalizations, and deliver cost-effective, timely interventions.”
“2024 has seen notable strides, including the growing accessibility of genetic testing like Liquid Biopsy for cancer detection to WGS-based TB testing beyond metros and increased awareness around personalized medicine. However, the challenge lies in scaling these advancements to address healthcare disparities and ensure that cutting-edge solutions reach every patient,” said Surajit Chakrabartty, CFO, MedGenome.
Expectations from 2025
After an expected slow start the healthcare industry focus will move towards the most crucial policy exercise- particularly the budget for FY 2025-26 where the industry may finally find an answer to its long-standing question about the GST on health insurance, a matter that has been postponed multiple times. In the 55th GST Council meeting (latest) the delay was attributed to the postponement of the report by the Group of Ministers (GoM) on Insurance.
Providing clarification over the delay Samrat Chaudhary, who leads the Group of Ministers (GoM) on insurance stated, “whether it is for group insurance, individual insurance or senior citizens’ insurance, we will do another meeting for it. We will discuss it all in the next meeting.”
Notably the next meeting of the GoM is expected to take place in January just several days before the presentation of the annual budget.
The National Association of Healthcare Providers (NATHEALTH), an Industry body, has also conveyed several demands to the Finance Ministry. Some of the demands include removing customs duties and reducing GST to 5 per cent on oncology radiation equipment, such as LINACs; imposing proposed 35 per cent GST slab on tobacco and sugar products; Adding 2.5 to 3.0 million hospital beds nationwide through Viability Gap Funding (VGF) and long-term, low-interest capital investments, Indexing reimbursement rates of schemes such as CGHS, PMJAY, and ECHS to the Consumer Price Index (CPI) among several others.
In an official document addressed to the Finance Minister, NATHEALTH, President Abhay Soi said, “The upcoming Union Budget offers an unprecedented chance to address systemic gaps such as the acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population.”
“Expanding hospital capacity, viable reimbursement frameworks, reducing treatment costs, and advancing medical education will not only address current challenges but also secure India’s position as a global healthcare leader,” the release stated.
Apart from these policy efforts, observing some of the early stage developments from other industries like auto where major brands are collaborating to safeguard themselves from the Chinese onslaught, in the healthcare industry irrespective of the nature of business, there is a rising chorus for collaborations with foreign and domestic players be it public or private.
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.
Looking ahead to 2025, the focus must shift towards fostering collaborations between public and private sectors, expanding the adoption of genomics, and leveraging multiomics to unlock breakthroughs in drug development and patient care. By embracing these transformative opportunities, India’s life sciences sector can lead the way in delivering accessible, efficient, and impactful healthcare solutions to the global population,” Surajit Chakrabartty said.
On similar lines Anil Matai, said that, “in 2025, a focus on research excellence and innovation will position India as a global hub for high-quality, affordable pharmaceuticals and collaboration between policymakers, academia and industry stakeholders will address unmet medical needs, particularly in underserved regions.”
According to Vishal Goel, in 2025, aligning with global standards and capitalising on transformative opportunities will help India reinforce its position as a key contributor to advancements in life sciences and global health improvements and 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.
Thus, it can be derived that 2024 proved to be a favorable year for both businesses and patients. The year ahead offers substantial growth through mergers, acquisitions, and collaborations with various stakeholders. However, the industry’s primary challenge will be keeping pace with rapid innovations while ensuring these advancements reach rural and underserved regions.
