Heal the world: Will India achieve its target of becoming a health tourism hub by 2047?

Some of india’s major metropolitan cities have for years provided healthcare services to patients from Africa, the Middle East, Sri Lanka, Maldives, Central Asia, Africa, Bangladesh, south-east Asia, Myanmar, Nepal, and Bhutan, among others. While Chennai, Mumbai, Delhi, Bengaluru, Hyderabad, and Kolkata have become thriving healthcare hubs, in case of pharmaceutical manufacturing, the journey has been long. Once known as the pharmacy of the Global South, the Covid-19 pandemic provided India an opportunity to emerge as a full-fledged healthcare engine built for scale. Two of the most widely used vaccines during the pandemic, Covishield and Covaxin, were made in India, with Serum Institute of India’s Covishield earning the moniker “vaccine for the world.” This built a case for India becoming the world’s healthcare powerhouse on the lines of Singapore (Asia’s top medical tourism and research and development or R&amp;D hub), South Korea (known for robotic surgery and health tech) or China (rapidly growing biotechnology and health manufacturing). For India’s healthcare sector to rise to the Viksit Bharat 2047 ambitions, it must not only expand existing healthcare services capabilities but also build manufacturing and R&amp;D capacities. “It will take more than just exporting affordable generics. We need a balanced strategy that combines our strengths in pharmaceutical manufacturing with expanded clinical services, including doctors, hospitals, diagnostics, and digital health platforms,” says Arup Mitra, Dean and Professor of Economics at South Asian University in New Delhi. The Covid-19 pandemic acted as a catalyst for pharmaceutical manufacturing in India. Government and industry collaboration—through initiatives like vaccine monitoring digital platform CoWIN, production-linked incentive (PLI) schemes, and faster regulatory clearances—enabled faster innovation and rollout. “With the world’s largest digital health mission, a surge in med-tech innovation, and a generational shift toward wellness and longevity, India is poised to become the global epicentre of inclusive, intelligent healthcare,” says Dr Sangita Reddy, Joint Managing Director, Apollo Hospitals. According to Pharmexcil, pharmaceutical exports reached $27.9 billion in FY24, compared to $20.6 billion in FY20, the last full fiscal year before the pandemic. This growth reflects India’s expanding global footprint in the pharmaceutical sector, with the United States remaining the top export destination, accounting for 31% of total pharmaceutical exports. With a surge in med-tech innovation, and a shift toward wellness, India will become the global epicentre of inclusive, intelligent healthcare. -Dr. Sangita Reddy,Joint Managing Director, Apollo Hospitals To reduce India’s 65% import dependence on bulk drugs, over Rs 20,000 crore has been committed under PLI schemes between FY21 and FY30—Rs 6,940 crore for bulk drugs and Rs 15,000 crore for pharmaceuticals—according to the Department of Pharmaceuticals. India has a strong manufacturing capacity for formulations—finished drugs and vaccines—but relies heavily on imported raw materials, such as APIs, especially from China. Though it can produce medicines at scale, the supply chain is import-dependent. The PLI push is expected to boost local API and device production. “We are seeing signs of the ‘China+1’ strategy playing out, especially in formulations and select API (active pharmaceutical ingredient) segments. Global companies are actively looking to diversify their supply chains, and India is a natural choice given its strong regulatory track record and manufacturing base,” says Bhavin Mukund Mehta, Vice-Chairman, Pharmexcil. Despite manufacturing bottlenecks, India’s medical value travel (MVT) market is rebounding post-Covid and is projected to expand significantly. According to Future Market Insights, the Indian MVT market, valued around $10.2 billion in 2023, is expected to touch $58 billion by 2035. In FY24 alone, over 7.3 million foreign patients visited India for treatment, contributing an estimated $7.7 billion to the economy, according to the data. High-end treatments like oncology, cardiac surgery, transplants, in vitro fertilisation, and orthopaedics remain the top draws. India has renewed appeal as an affordable, high-quality healthcare destination. Indian hospital chains are expected to add nearly 100,000 new hospital beds domestically by 2030, largely in Tier II and Tier III cities, to serve the growing influx of international medical travellers. India’s diagnostics market is also creating stronger, tech-enabled national networks to improve access. Once a fragmented mix of regional labs, it is consolidating fast. According to MarketWatch, the sector stood at Rs 1.54 lakh crore in FY24 and is projected to grow at 11–12% CAGR, nearly doubling by 2030. Large players like Dr Lal PathLabs, Metropolis, and Agilus Diagnostics are investing in AI-powered diagnostics, digital pathology, and doorstep testing models. Experts are calling for quality standards to make the efforts a success. “Today, the absence of uniform standards means that care quality can vary dramatically across providers, often leaving patients underserved. To lead globally, we need a robust regulatory ecosystem that enforces minimum quality benchmarks for all players—from pharma and hospitals to diagnostics, digital health, and start-ups,” says Ameera Shah, Promoter and Executive Chairperson, Metropolis Healthcare Ltd. Digital infrastructure could also become India’s single biggest healthcare export. Data from healthcare technology platform Practo shows teleconsultations stood at just 5,50,000 in 2019. However, the pandemic dramatically accelerated adoption, with consultations rising to over 2.4 million by 2023 on Practo alone. Nationally, digital consultations accounted for around 11% of outpatient visits in 2019, and peaked at nearly 46% during the pandemic. “AI will enable faster, more accurate diagnoses to transform how care is delivered across geographies and income levels,” says Bharath Sesha, Managing Director, Philips Indian Subcontinent. “We have the data, the talent, the entrepreneurial energy, and a growing policy push. If we invest right and innovate responsibly, India could become a global benchmark in digital health.” The vision of transforming India’s healthcare sector into a global hub is being led mainly by the private sector, as India’s public healthcare system, even today, remains underfunded and primarily focused on basic service delivery and population health, rather than export-oriented care or innovation. However, public initiatives like the Ayushman Bharat Digital Mission and CoWIN platform do play a supporting role by providing digital infrastructure and a universal health identity that private players can build on. To become a global healthcare leader, India will need sustained investment not only in product innovation but also in advanced clinical trials, regulatory science, and global collaborations, shifting from being a volume-driven market to a value-led innovation hub. Global companies are looking to diversify their supply chains, and India is a natural choice for its strong regulatory track record. -Bhavin Mukund Mehta,Vice Chairman, Pharmexcil In FY24, the top 10 listed Indian pharmaceutical companies collectively spent around Rs 13,710 crore on R&amp;D, accounting for nearly 5.9% of their revenues, according to GlobalData. However, this is not a dramatic jump from a decade ago. A 2023 peer-reviewed study published in the International Journal of Business Management and Allied Sciences found that in FY14, R&amp;D intensity among leading Indian pharma firms was 5–6% of revenues—for instance, Cipla allocated 5.4% and Dr. Reddy’s nearly 8.9%. Companies like Dr. Reddy’s allocated over 8% of their revenues to R&amp;D in FY24, with a strong focus on biosimilars and small-molecule innovation. Sun Pharma, too, raised its R&amp;D investment to 6.7% of sales in FY24, with stated plans to increase this to 8–10% over the next few years, depending on product pipeline requirements. These R&amp;D efforts are being channelled into biologics, mRNA platforms, and novel drug delivery systems—critical areas if India hopes to evolve from a generics-led exporter to a global centre of pharmaceutical innovation. @neetu_csharma

Heal the world: Will India achieve its target of becoming a health tourism hub by 2047?

India is aiming to become a health tourism destination by 2047. This would need mastering not just drugs and vaccines but also hospital care, diagnostics, digital systems, and clinical expertise. Can it achieve the target?