Charting the path – Current and emerging trends in India’s IVD sector

The in-vitro diagnostics (IVD) industry has emerged as a crucial player in the global battle against the Covid-19 pandemic, showcasing remarkable resilience and innovation. Amidst the challenges posed by the pandemic, diagnostics have proven to be the cornerstone of healthcare, enabling accurate and prompt identification of diseases. Diagnostics serve as the primary line of defence in healthcare, enabling healthcare professionals to accurately and promptly identify diseases in 60 to 70 percent of the cases.

The IVD sector stands at the forefront of healthcare innovation, promising exciting developments that will revolutionize disease diagnosis and management.

In the modern healthcare landscape, diagnostics serve as the primary line of defense, contributing significantly to the increase in average life expectancy (ALE) worldwide. India, in particular, has seen a notable rise in ALE over the years, attributed to accurate diagnostics and advanced medical treatments. This increase underscores the critical role of the IVD industry in improving public health outcomes.

One of the most promising advancements in the IVD field is the intersection of AI and personalized medicine. AI algorithms leverage individuals’ genetic profiles and medical histories to tailor treatment plans specifically to their needs, thereby optimizing treatment effectiveness and reducing side effects. This personalized approach marks a significant leap forward in the era of precision medicine especially in field of oncology and rare diseases.

The growth of the Indian healthcare sector is driven by various factors, including an aging population, the prevalence of lifestyle diseases, and increased investor interest. Public-private partnership (PPP) models, and the rapid integration of digital technologies like telemedicine, have further propelled the sector’s expansion. Moreover, favorable government policies, such as the production-linked incentive (PLI) schemes, aim to enhance domestic production of medical devices and pharmaceuticals, fostering growth and innovation within the IVD industry.

India has made remarkable strides in the global IVD arena, thanks to continuous reforms and favorable policies aimed at bolstering the healthcare sector. Government initiatives like the Aatmanirbhar Bharat Abhiyaan packages focus on enhancing domestic production and attracting foreign direct investment (FDI) inflows. According to a report by Research and Markets, the global IVD market size is expected to grow from USD 84.5 billion in 2020 to USD 96.0 billion by 2025. These efforts, coupled with the strategic leadership of Indian IVD players, have positioned the nation as a key player in the global market.

According to projections, the global IVD market size is expected to grow significantly in the coming years, with India’s IVD instruments and reagents market projected to reach substantial heights. This growth potential translates into job creation, with the sector expected to generate millions of additional jobs annually in India. However, challenges persist, highlighting the need for further investment in healthcare infrastructure and accessibility. India’s IVD instruments and reagents market is projected to reach the USD 1.8 billion mark by 2025. Between 2017 and 2022, the sector had the potential to create over 500,000 new jobs annually in India, totaling 2.7 million additional jobs.

Government spending on healthcare in India has been increasing, albeit remaining relatively low compared to GDP. Initiatives like the National Health Mission (NHM) and Ayushman Bharat aim to address growing healthcare needs, including diagnostics. However, challenges persist, highlighting the untapped potential of the IVD market. Reflecting its commitment to enhancing healthcare infrastructure and accessibility, India has steadily increased its government expenditure in the health sector. The Union Budget 2021-22 allocated a significant amount for health and wellbeing, signaling a strong commitment to achieving Universal Health Coverage.

Regulatory bodies like the Central Drugs Standard Control Organization (CDSCO), Indian Council of Medical Research (ICMR), and Bureau of Indian Standards (BIS) play a crucial role in ensuring the safety, efficacy, and quality of diagnostic products. The ICMR’s standards shape India’s medical research, healthcare, regulatory decisions, and industry practices in IVD. Compliance with regulatory standards is imperative for businesses operating in the IVD sector to maintain credibility and market competitiveness.

In conclusion, the IVD industry in India is witnessing remarkable growth and demand, driven by various factors, such as increasing government spending, favorable policies, and technological advancements. With continuous reforms and efforts to address regulatory challenges, the sector is poised for substantial growth and positive development in the coming years, offering lucrative opportunities for investors and stakeholders alike.