India’s health care sector stands at a defining moment—one of immense potential and unparalleled opportunity. Over the past decade, we have not only expanded access and affordability but also laid the groundwork for India to emerge as a global leader in pharmaceutical innovation and integrated health care.
Landmark initiatives like Ayushman Bharat and the Ayushman Bharat Digital Mission have reimagined healthcare delivery, while the Production Linked Incentive (PLI) scheme has strengthened domestic pharmaceutical manufacturing, reducing import dependence and creating thousands of jobs. With the sector attracting record foreign investment—$2.06 million in FDI in 2022-23 and a remarkable 162% growth in the first quarter of 2024-25 vis-à-vis 2023-24— the momentum is undeniable. The government has also raised the funding for biotechnology research and development from ₹500 crore to ₹1,100 crore.
This, supported by an annual increase of 13% in health care spending, underlines the government’s resolve to strengthen the health care ecosystem. These milestones set a strong foundation, but unlocking India’s full potential will require a bold and sustained push toward innovation-driven growth.
The vision of a $130 billion pharmaceutical market by 2030 and a $450 billion market by 2047 under the Viksit Bharat mission is not just aspirational—it is within reach. To achieve this, we must go beyond incremental progress and create an ecosystem that fosters research, ensures equitable access to cutting-edge medicines, and accelerates academia-industry collaboration. This is India’s moment to lead, shaping a future where healthcare innovation thrives, and every breakthrough translates into meaningful impact for patients at home and around the world.
India currently spends around 7% of pharmaceutical sales on research and development (R&D), compared to the global average of 15-20% Bridging this gap requires an enabling policy environment that incentivises research through public-private partnerships (PPPs), innovation-linked incentives, and improved funding mechanisms. Additionally, while India contributes 3% of global clinical trial participants1, there is a need to further diversify and enhance representation to ensure inclusivity and global competitiveness.
Beyond investment, a strong regulatory framework must support the rapid translation of research into market-ready solutions. Establishing dedicated innovation clusters and promoting translational research will be instrumental in creating a globally competitive innovation ecosystem.
A thriving innovation ecosystem must be complemented by an equally strong framework for access. Fast-tracking regulatory approvals, streamlining the import of life-saving drugs, and fostering ease of doing business are crucial for ensuring timely patient access to cutting-edge therapies. Recent policy shifts, such as customs duty exemptions on cancer drugs, reflect a strategic approach to improving access to critical treatments.
Additionally, the integration of digital health tools, telemedicine platforms, and Artificial Intelligence (AI)-driven diagnostics can bridge healthcare gaps in underserved regions. Strengthening IP protection and regulatory data exclusivity will further boost investor confidence and accelerate innovation in India. By ensuring a balance between affordability and sustainable innovation, India can set a benchmark for equitable healthcare access.
India’s demographic advantage is undeniable—by 2030, it will have the world’s largest working-age population. However, according to India Skills Report, only 46% of pharma graduates are considered employable, highlighting a critical need for skill development. Expanding collaborations with premier institutes such as NIPER, IISc, and AIIMS will help train future scientists in advanced therapies, regulatory sciences, and clinical research.
Global Capability Centers (GCCs) are already playing a significant role in enhancing talent development and fostering innovation. These centers must continue to scale their contributions across the pharmaceutical value chain by integrating cutting-edge technologies such as AI-driven drug discovery, precision medicine, and biomanufacturing. Additionally, strengthening academia-industry partnerships through structured internship programmes, innovation hubs, and collaborative research initiatives will be vital to ensuring a steady pipeline of skilled professionals ready to lead India’s healthcare transformation.
Realising the vision of a Viksit Bharat requires concerted efforts from all stakeholders—government, industry, academia, and research institutions. By building a collaborative and resilient innovation ecosystem, India can move beyond being the pharmacy of the world to becoming the innovation hub of the world. The next two decades will define India’s leadership in medical innovation, patient-centric health care solutions, and equitable access to life-saving treatments. With a shared commitment to excellence, India can shape the future of global health care and set new benchmarks for innovation and impact.
This article is authored by Amitabh Dube, country president and managing director, Novartis India.
