Current market trends of medical diagnostic industry in India

The mainstay of the detection, diagnosis, and assessment of any disease comes under the domain of medical diagnostic industry. Around 70 percent of the medical decisions related to disease diagnosis, management, and prevention are based on diagnostics. They are a crucial tool in preventive healthcare as well. While all through 2020-21, the medical diagnostic industry was primarily driven by the Covid-19 pandemic, it has been rapidly trying to keep pace with the corona virus and its emerging new mutants in a veritable combat mode to meet the huge challenge in catering to the deluge of urgent doorstep sample collection, quick turnaround time, and speedy delivery of reports. It has been pushed into devising innovative techniques and newer tests to deal with the same with upgraded equipment and implementing the latest software applications to scale up to the demand of the burgeoning volume of tests required to be conducted, while keeping a sharp eye on quality control and affordability.

The pandemic scenario has accelerated an entire paradigm shift in the diagnostic industry, heralding an era of phenomenal revolution concerning its scope and capacity for unprecedented economic growth. Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. The Covid-19 pandemic has impacted the level of health awareness, and the need for quality preventive healthcare and health insurance in the most positive manner, shaping new consumer-friendly models of care delivery for all. The way forward for diagnostic industry is point-of-care testing, self-testing kits, genome testing and the implementation of artificial intelligence (AI)-based analytic solutions to cope with the anticipated increase in the total volume of tests in future. The global point-of-care diagnostic industry is segmented, based on product, end-user, mode of prescription, and geography.

In India, the diagnostic industry stands at a whopping ₹675 billion and is estimated to grow at a rapid annual rate of <10 percent over the next five years by increasing wellness and healthcare awareness, rapid rise in lifestyle diseases like diabetes and cardiovascular diseases due to sedentary lifestyle, preventive healthcare testing, insurance services, and the overall rise in the spending power of people among all strata of society.

Digital and technological innovations are now integral to this industry, supported by its national health policies and programs that aim to make affordable healthcare accessible for all sections of society, including the rural population. This resulted in a proper assessment of the country’s disease burden, disease trends and effective collation of data, and extensive emphasis on research. The government has spruced up its efforts to provide incentives for growth in the domestic medical devices industry and also encouraging foreign direct investment to achieve a leading rank in the medical devices manufacturing industry. The healthcare market can increase three-fold to ₹8.6 trillion (USD 133.44 billion) by 2022. In Budget 2021, India’s public expenditure on healthcare stood at 1.2 percent as a percentage of the GDP. The Government of India aims to increase healthcare spending up to 3 percent of its GDP by 2022. The healthcare market can increase three-fold to ₹8.6 trillion (USD 133.44 billion) by 2022.

There will be a boost in the demand for preventive and curative healthcare in the year 2022. Innovative technology like robotic process automation has emerged as a logical solution at high-end diagnostic centers, along with digitization to cover the lacunae in the area of skilled lab technicians and personnel as well as improved precision and quicker results. To support these innovations, advanced equipment and machinery have further exhibited a hugely positive impact on the diagnostic services market. The easy availability of doorstep collection, walk-in services, and quick results is a huge boost for the diagnostic industry.