India's healthcare sector is one of the crucial moments: one of immeasurable potential and unparalleled opportunities. Over the past decade, not only has it expanded access and affordability, it has laid the foundation for India to emerge as a global leader in pharmaceutical innovation and integrated healthcare.
Landmark initiatives such as the Ayushman Bharat and the Ayushman Bharat Digital Mission have rethinked the delivery of healthcare, but Production-Linked Incentives (PLI) schemes have strengthened domestic drug manufacturing, reduced import dependence and created thousands of jobs. The sector has recorded a pronounced 162% growth in FDI from 2022-23 and a pronounced 162% growth from 2024-25. The government has also raised funding for biotechnology research and development £500 crores £1,100 crores.
This is supported by an annual increase of 13% in healthcare costs, highlighting the government's resolve to strengthen the healthcare ecosystem. These milestones set a strong foundation, but unlocking India's full potential requires a bold and sustainable drive to innovation-driven growth.
The vision for a $130 billion pharmaceutical market by 2030 and a $450 billion market by 2047 is within reach, rather than just an orientation under the Viksit Bharat Mission. To achieve this, we need to go beyond gradual progress to create an ecosystem that will promote research, ensure equitable access to cutting-edge medicines, and accelerate academia and industry collaboration. This is an Indian moment that shapes a thriving future in which healthcare innovations can flourish, and every breakthrough leads to meaningful impacts for patients in their homes and around the world.
India currently spends around 7% of its drug sales on research and development (R&D), but compared to the global average that fills this gap, this gap requires an effective policy environment that promotes research through public-private partnerships (PPPs), innovation-related incentives, and improved funding mechanisms. Furthermore, India has donated 3% of global clinical trial participants1, and its representatives need to be further diversified and strengthened to ensure inclusiveness and global competitiveness.
Beyond investment, a strong regulatory framework should support the rapid translation of research into market-ready solutions. Establishing dedicated innovation clusters and promoting translational research is committed to creating a globally competitive innovation ecosystem.
A thriving innovation ecosystem must be complemented by an equally powerful framework for access. Fast tracking regulatory approvals, streamlining life-saving drug imports, and promoting ease of business are important to ensure timely access to state-of-the-art therapies. Recent policy changes, such as tariff exemptions for cancer drugs, reflect strategic approaches to improving access to critical treatments.
Additionally, the integration of digital health tools, telehealth platforms, and artificial intelligence (AI)-driven diagnostics can bridge the healthcare gaps in underserved communities. Strengthening IP protection and the exclusiveness of regulatory data will further increase investor confidence and accelerate India's innovation. By ensuring a balance between affordable prices and sustainable innovation, India can set a benchmark for equitable healthcare access.
India's demographic benefits cannot be denied. By 2030, there will be the largest working-age population in the world. However, according to the Indian Skills Report, only 46% of pharmaceutical company graduates are considered employed, highlighting the important needs of skill development. Expanding collaborations with premier laboratories such as NIPER, IISC, and AIIMS will help train future scientists in advanced therapies, regulatory science and clinical research.
The Global Capacity Centre (GCCS) already plays a key role in strengthening talent development and fostering innovation. These centers need to continue to expand their contributions to the entire drug value chain by integrating cutting-edge technologies such as AI-driven drug discovery, precision medicine and biomanufacturing. Furthermore, strengthening academia industry partnerships through structured internship programs, innovation hubs and collaborative research initiatives is essential to ensuring a steady pipeline of skilled professionals ready to lead India's healthcare transformation.
Realizing Viksit Bharat's vision requires collaborative efforts from all stakeholders (government, industry, academia and research institutes). By creating a joint, resilient innovation ecosystem, India can go beyond being a global pharmacy and become the global innovation hub. The next 20 years will define India's leadership in healthcare innovation, patient-centered healthcare solutions, and equitable access to life-saving treatments. A common commitment to excellence allows India to shape the future of global healthcare and set new benchmarks for innovation and impact.
This article is written by Amitabh Dube, president and managing director of country, Novartis India.
