Indian diagnostics industry 2024 – A year of innovation, growth, and impact

2024 has been a transformative year for the healthcare industry in India. According to industry reports, the Indian healthcare sector is on a remarkable growth trajectory, valued at approximately USD 180 billion in FY 2023 and projected to reach USD 320 billion by FY 2028. This rapid expansion is driven by transformative advancements in technology, progressive policy reforms, and a growing focus on accessibility and innovation. Government initiatives, such as increased healthcare funding and public-private partnerships, have played a critical role in strengthening infrastructure and improving affordability, particularly in addressing non-communicable diseases (NCDs). Furthermore, the integration of artificial intelligence (AI), machine learning, genomics, and molecular diagnostics has redefined medical diagnostics, delivering enhanced accuracy, operational efficiency, and timely interventions.

Since independence, India’s life expectancy has soared from 32 years in 1947 to 72.2 years, largely driven by advancements in diagnostics. Accessibility to affordable, high-quality diagnostic services have made India a global hub for medical tourism. Today, diagnostic centers across the country are equipped with state-of-the-art facilities and cutting-edge technologies for precision diagnostics. This has fueled the rapid growth of the industry, which is projected to expand from USD 13 billion in FY 23 to USD 25 billion by FY 28, growing at a 14-percent CAGR, according to the Praxis Global report.

Harnessing diagnostics and genomics for better preventive care management
In the aftermath of the Covid-19 pandemic, diagnostics has become crucial for early detection of conditions, such as hypertension, obesity, cancer, and diabetes. Leveraging genomics and genetic testing, healthcare professionals can now identify predispositions to various diseases, craft tailored preventive strategies, and develop customized treatment plans. This shift from reactive treatment to proactive prevention has driven the Indian genetic testing market to triple in size. As per Research and Markets reports, the market has reached approximately USD 60.78 million in 2022 and is projected to grow to USD 90.52 million by 2028, with a compound annual growth rate (CAGR) of 6.94. Additionally, direct-to-consumer genetic testing companies now offer affordable kits that enable individuals to collect DNA samples at home and receive comprehensive analyses of ancestry, health, and genetic traits. This growing trend underscores a fundamental change in healthcare, where preventing diseases takes precedence over treating them.

Impact of automation in diagnostics and cancer care
Automation has minimized errors across the diagnostic process, from sample collection to report generation, ensuring seamless and reliable outcomes. AI-driven algorithms analyze vast datasets to enable early disease detection and the creation of personalized treatment plans, significantly improving patient outcomes. Widely adopted AI tools have streamlined operations, reduced turnaround times, and have been enhancing diagnostic accuracy.

The integration of telemedicine with diagnostics has bridged gaps in healthcare delivery, enabling remote consultations and continuous monitoring for patients in underserved regions. Moreover, AI-powered genomic analysis has facilitated personalized medicine by identifying predictive biomarkers, optimizing treatment plans for better efficacy. Oncology diagnostics have achieved new milestones with liquid biopsy technology – a non-invasive innovation that enables early cancer detection, monitors treatment efficacy, and identifies therapy resistance, boosting survival rates.

Advanced diagnostics making India hub for medical tourism
The diagnostics industry has even played a pivotal role in supporting the country’s burgeoning medical tourism industry. Since accuracy, reliability, and timely results are three key pillars for medical tourists seeking swift diagnoses and treatment planning, the diagnostics companies offer a comprehensive range of tests across specialties. With the diagnostic centers’ state-of-the-art laboratories and adherence to global quality standards, many firms provide a seamless experience for international patients. The NABL and CAP-accredited labs deliver precise results, instilling confidence in patients and healthcare providers alike. By aligning the services with global healthcare expectations and leveraging the robust diagnostic expertise, India has positioned itself as a trusted partner in delivering world-class healthcare solutions.

Outlook for the medical diagnostics industry in 2025
The medical diagnostics industry is poised for more transformative growth in 2025, with a focus on evidence-based diagnostics and advancements in molecular and multi-omics technologies. When it comes to technology impact, AI and big data will drive personalized healthcare solutions, while governments and healthcare providers invest in early detection programs to address the rising burden of NCDs.

Community-based screening initiatives will expand significantly. Advocacy for increased government spending and incentives for public-private partnerships will fuel innovation. Collaborative efforts among stakeholders will ensure affordability, accessibility, and scalability of diagnostic solutions. The government should consider reducing and gradually phasing out GST rate on the diagnostic equipment and all supplies related to diagnostic testing. Since 60 percent of India’s diagnostics are reliant on imports, it becomes paramount for the government to rationalize import tariffs on healthcare products.