India’s healthcare innovation market is poised for remarkable growth, with projections indicating it may double in value to reach $60 billion by the fiscal year 2028.
This expansion is expected to be driven by a confluence of factors, including rising consumer demand, shifts in the global healthcare value chain, advancements in Indian scientific and technological capabilities, and favorable regulatory conditions, according to a report titled ‘Healthcare Innovation in India‘ by Boston, MA-Headquartered Bain & Company and HeathQuad, a healthcare focused venture capital fund based in Gurgaon, India.
The overall Indian healthcare market which stands at about $180 billion, in FY 2023—is projected to grow at approximately 10-12% CAGR to reach $320 billion by FY 2028, according to the report.
The healthcare innovation segment accounts for $30 billion, or 15% of the market. While the healthcare innovation market is predominantly dominated by pharma services and healthtech, biotech and medtech are emerging as promising areas.
The Indian pharma services market, valued at approximately $16 billion in FY 2023, witnessed 85-90% of its revenue driven by exports. Within this segment, contract development and manufacturing organizations received a significant boost, benefiting from factors such as global supply chains shifting away from China and capacity improvements.
The healthtech market more than doubled in a span of three years, reaching $7 billion in FY 2023. Fueled by the COVID-19 pandemic and the need for efficiency in healthcare, healthtech has claimed roughly 25% of the overall healthcare innovation space.
The vaccines and biotech market, valued at about $4 billion in FY 2023, accounted for approximately 15% of the total innovation market. Its growth in the last three years was largely driven by exports, with India being a vaccine powerhouse catering to about 60% of the global vaccine demand.
India’s medtech industry, an $11 billion market overall, saw nearly 80% of its revenues coming from imports. Players within the industry accounted for about $2.5 billion in FY 2023, up from around $1.8 billion in FY 2020.
Investments in the healthcare industry have been fairly consistent, with 80-90% of deal volume in seed and early-stage VC rounds, 3-7% in late-stage rounds, and less than 5% in late-stage PE and other deals. However, recent times have seen investors emphasize positive unit economics due to higher interest rates and global macroeconomic uncertainties, leading to more cautious investments.
Last updated: December 26th, 2025
