Understanding the Status of Healthcare Research in India: Challenges in Building Made-in-India Healthcare Innovation and the Role of Funding
By Amarjeet Singh Tak, Head – Research and Microscopy Solutions, ZEISS India
India’s healthcare research ecosystem is at a defining inflection point. For decades, the country has been recognized as the world’s pharmacy supplying affordable generic medicines across continents. Today, however, India is transitioning from being primarily a manufacturer to becoming an innovator. The ambition is clear: move from made for the world to invented in India for the world.
Yet, this transformation is complex. Building original healthcare products whether diagnostics, devices, biologics, or digital health platforms requires far more than scientific talent. It demands infrastructure, sustained funding, real-world testing environments, and close collaboration between research, industry, and policy.
The Reality Gap: Innovation vs. Ground Conditions
One of India’s most distinctive challenges is scale combined with diversity. Nearly two-thirds of the population lives outside major urban centers, which means healthcare solutions must function reliably in environments that may lack stable electricity, controlled storage conditions, or specialist operators. This is not merely a logistical constraint it fundamentally shapes how healthcare technologies must be designed.
For example, a diagnostic device developed for a European hospital with uninterrupted power and trained technicians cannot simply be imported into rural India and expected to perform equally well. Indian innovators must think differently: devices must be portable, rugged, intuitive, and affordable. This is why some of the most successful Indian health technologies such as low-cost ECG devices, portable ultrasound systems, and point-of-care testing kits have succeeded globally. They were built for constraints, and that constraint-driven design turned into a competitive advantage.
In global innovation circles, this approach is increasingly recognized as frugal engineering, but in India it is evolving into something more powerful: precision innovation for real-world conditions.
Designing for India, Not Just Manufacturing in India
For healthcare innovation to be meaningful, it must be accessible. A breakthrough that reaches only metropolitan hospitals does not transform public health outcomes. The true test of Indian healthcare innovation is whether it can reach a primary health center in a small town or a diagnostic camp in a remote village.
This requires a mindset shift from
“Can we build it?” to “Can it work everywhere?”
Designing for India means creating technologies that are:
affordable without compromising quality
operable by non-specialists
reliable in variable infrastructure conditions
scalable across diverse geographies
When innovation is aligned with accessibility, science becomes a social equalizer rather than a privilege.
Why Funding Is the Backbone of Healthcare Innovation
Healthcare research is unlike most other sectors. It involves long development cycles, strict regulatory validation, and high failure rates. A drug, device, or diagnostic platform can take years sometimes decades to move from concept to clinical use. This makes early-stage investment inherently risky for private capital alone.
This is where government funding becomes indispensable.
Initiatives such as biotechnology missions, startup grants, public health innovation programs, and production-linked incentives act as catalytic capital. They absorb early risk, support clinical validation, and help startups survive the critical early years. Globally, many breakthrough technologies from mRNA vaccines to advanced imaging systems have benefited from government-backed research funding at foundational stages. India is now building similar mechanisms, enabling local innovators to compete with established global players. This support is not just financial, it signals national confidence in scientific entrepreneurship.
A Rapidly Strengthening Innovation Ecosystem
There is tangible momentum across India’s healthcare research landscape. Health-tech startups are developing AI-assisted diagnostics. Biomedical engineers are designing affordable prosthetics and wearable health monitors. Digital health platforms are improving access to medical records and teleconsultations. At the same time, multinational companies are expanding R&D centers in India, recognizing both the talent pool and the market opportunity. Patent filings by Indian researchers are rising, and venture funding for deep-tech healthcare ventures is steadily increasing.
What is particularly encouraging is the shift in mindset. Earlier, affordability was often associated with compromise. Today, Indian innovators are proving that affordability and global-grade quality can coexist and even become a competitive advantage.
The Missing Link: Stronger Academia–Industry Integration
Despite progress, one structural gap remains: translating academic research into commercial solutions. Universities generate valuable scientific insights, but without strong industry linkages, many discoveries remain confined to journals rather than reaching patients.
Bridging this gap requires:
Joint research programs between academia and industry
shared laboratories and testing facilities
faster regulatory pathways for indigenous innovation
interdisciplinary training combining engineering, medicine, and data science
Countries that lead in healthcare innovation, such as the United States, Germany, and Israel have one common strength: seamless collaboration between universities, startups, and industry. India’s next leap will depend on building this same synergy at scale.
The Road Ahead: From Pharmacy to Pioneer
India has already demonstrated that it can supply affordable healthcare solutions to the world. The next step is to lead in discovery. With its scientific talent, growing research infrastructure, expanding digital health backbone, and supportive policy environment, the country is well positioned to become a global hub for healthcare innovation.
However, sustained progress will depend on continued investment, in funding, infrastructure, skills, and collaboration. Healthcare innovation is not built overnight; it is built through patience, persistence, and partnerships. If nurtured strategically, India’s healthcare research ecosystem will not only serve its own population but also shape global healthcare solutions. And when that happens, the phrase “Made in India” will no longer signify cost advantage alone; it will stand for scientific excellence, reliability, and innovation.
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