Healthcare in India is projected to grow at approximately 12% CAGR to reach roughly $320 billion by 2028 fiscal year, reveals a new report titled Healthcare Innovation in India by Bain & Company, propelled in part by AI. Within the current market, healthcare innovation accounts for approximately 15%, or US$ 30 billion, which is projected to reach approximately U$ 60 billion by 2028.

According to the report, new solutions, companies, and profit pools driven by cutting-edge technology adoption will emerge within the next few years, owing to AI capabilites in areas of understanding visual, spoken, or written content; communicating and creating; reasoning and planning; time-to-output; and ability to act and use tools.

These AI capabilities, the report explains, will lead to fundamental shifts across R&D, manufacturing, supply chain management, commercial operations, and healthcare delivery.

In addition, consumer demands in India will drive the continued growth of healthtech products and services to help consumers better. The usage of digital health applications like e-pharmacy, telemedicine, and wellness services grew between 20% to 100% due to the pandemic, and consumers expect their use to further increase by 5% to 10% every year.

Additional factors include reconfigurations to the global healthcare value chain, a deepening of Indian scientific and technological expertise, and regulatory tailwinds.