This article has been contributed by Mr Jitin Bhasin – CEO and Co-founder of SaveIN.
As we move forward, the intersection of healthcare and financial technology (fintech) is poised to play a pivotal role in shaping the future. “If timely and quality healthcare can be made accessible to everyone, our country will have truly evolved.” This belief underscores the crucial role of healthcare in India’s path to becoming a developed economy by 2047, marking 100 years of independence.
India’s Growth and the Healthcare Sector
Currently, India is the fifth-largest economy globally, boasting a GDP of over $3.5 trillion. The nation is on a robust growth trajectory, setting benchmarks across various sectors. However, to achieve developed nation status, the healthcare sector must undergo a significant transformation.
With a healthcare market valued at around $372 billion, the government has initiated numerous programs to bolster this sector. Initiatives like the Pradhan Mantri Swasthya Suraksha Yojana, National Health Mission, and the Ayushman Bharat Health Infrastructure Mission are key in fostering sustainable partnerships between the public and private sectors. These efforts aim to make healthcare both affordable and accessible.
India’s recent strides in digitalization have propelled it ahead of other emerging economies. The country’s efficient handling of the COVID-19 pandemic, built on a solid digital infrastructure, exemplifies its ability to execute at scale. The next wave of healthcare disruption must also be rooted in the principles of transparency, efficiency, and accessibility through digital means.
Challenges and Opportunities in Healthcare
Indian Digital Health Market
Today, India’s healthcare sector faces three primary challenges: accessibility, quality, and affordability. While many salaried workers benefit from government schemes such as the Employee State Insurance (ESI) and Central Government Health Scheme (CGHS), the public healthcare infrastructure struggles to meet rising demand. This gap presents an opportunity for increased public-private collaboration.
Despite the presence of over two million healthcare providers across the country, affordability remains a critical hurdle. While insurance penetration is expected to rise over the next decade, many medical procedures, especially elective and outpatient treatments—which account for nearly 50% of medical expenses—are not covered by insurance. These treatments remain outside the scope of insurance due to a lack of data and standardization, making it difficult to price insurance products effectively.
For inpatient procedures where insurance is more common, patients often face insufficient coverage, delays in approval, or are required to pay out of pocket before receiving reimbursement, which can take months. To increase insurance penetration and improve healthcare affordability, these issues need to be addressed.
The Role of Fintech in Bridging the Healthcare Gap
This is where fintech, particularly embedded finance, can play a transformative role. By providing on-demand credit at the point of care, embedded finance can bridge the affordability gap in private healthcare. Similar to how the consumer electronics and smartphone sectors have evolved, offering financing options for healthcare can create a revolution in the industry.
Embedded finance (EmFi) allows healthcare providers to partner with lenders, enabling patients to pay for medical services using pre-approved credit lines. These credit lines can be repaid through easy, interest-free installments. This model benefits both providers, who can serve more patients, and recipients, who can access timely medical care without financial strain.
As more healthcare facilities adopt these simplified payment solutions, the demand for such services will likely increase, encouraging people to prioritize their health. A healthier population can lead to improved productivity, contributing to national GDP growth and creating a positive economic cycle.
Over time, data from Electronic Medical Records (EMRs), treatment patterns, and demographic information will help standardize and streamline healthcare services, leading to greater efficiency across the board.
Financing Health: The Role of Fintech Companies
Fintech companies, along with the private sector, are uniquely positioned to address the affordability issues in Indian healthcare. By leveraging cutting-edge digital technologies, risk-based underwriting, and innovative product structures, they can offer solutions that cater to both patients and providers.
The fusion of healthcare and finance holds immense potential, and the process of consumerizing healthcare has already begun. The timing is perfect, as the importance of health has never been more paramount to society. With clear roles for providers, patients, and financial facilitators, the coming decade promises to bring about significant advancements in personal healthcare.
On this National Startup Day 2024, we embark on a journey through India’s startup landscape, capturing insights from industry pioneers. From HealthTech to MedTech, nutrition, and beyond, industry leaders share their perspectives on the Indian startup ecosystem. Explore the story of the startup ecosystem’s evolution, understand the pivotal role played by the Government, and explore the promising horizons that lie ahead for these industries.
Join us in celebrating National Startup Day as we delve into stories shaping India’s entrepreneurial journey—a roadmap crafted with determination, backed by government support, and painted with the promise of an exciting future.
Dr. Narendra Vankar,Founder and CEO of Quantum CorpHealth, sheds light on the transformative journey of health-tech in India, emphasizing the increased accessibility of healthcare for the population. “The health and startup industries have been revolutionized by introducing health-tech in India. As we progress further with technology, more and more healthcare startups have cropped up in the last ten years, making healthcare more accessible and easy to use for more of the population in India.”
The Government of India has been very pro-startup throughout. From various funding initiatives to incentives like intellectual property rights (IPR) support, patent cost reimbursement, and credit guarantee schemes, GOI has been a staunch supporter of the startup ecosystem, not only in health-tech but also in other industries as well.
Dr. Vankar highlights the significant role of government schemes like the National Health Mission and the Ayushman Bharat Scheme, saying, “Additionally, schemes and missions like the National Health Mission and the Ayushman Bharat Scheme both play huge parts in making healthcare easier and more accessible to India’s ailing and elderly population. Through improving the availability of medical equipment and supplies, they promote community participation and engagement in healthcare decision-making and service delivery.”
Looking ahead, Dr. Vankar expresses optimism about the future of healthcare in India. “The Indian healthcare system has made significant progress in recent years. With India also becoming a destination for medical tourism with its skilled doctors and advanced treatments, the healthcare industry in India is becoming a safe bet for investors and patients alike. We can be optimistic about the future of healthcare and medicine in India, considering the constant and continued investment in healthcare and innovation.”
MedTech Innovations: A Glimpse into the Innovation, Growth, and Future
Transitioning from the insights of health-tech, Mr. Pranav Bajaj, Co-Founder of Medulance, brings a crucial perspective from the Medtech and ambulance industry. “As advocates for advancing healthcare resilience, Medulance Healthcare eagerly anticipates the upcoming budget as a pivotal opportunity to fortify India’s emergency services.”
Mr. Bajaj emphasizes the crucial role of ambulances and the paramedic sector. “Recognizing the indispensable role of ambulances and the paramedic sector, we urge the government to prioritize strategic investments in these areas to improve response times and overall emergency medical care efficacy.”
A key expectation from Medulance is the revision of the GST structure for ambulance procurement. “Currently burdened with a 28% GST, we propose a significant reduction to 0%. This move not only alleviates financial constraints but also incentivizes the nationwide enhancement of emergency fleets, contributing to faster and more effective emergency response.”
Commending the government’s progressive stance, Mr. Bajaj underscores the importance of exempting consumers from GST on emergency services. “We commend the government’s progressive stance in exempting consumers from GST on emergency services, ensuring immediate medical attention remains accessible without additional financial burdens.”
Expressing a forward-looking perspective, he sees the upcoming budget as an investment in the health and safety of citizens. “Medulance Healthcare views this budget not just as a fiscal adjustment but as an investment in the health and safety of our citizens. We look forward to a budget that not only acknowledges the critical role of emergency services but actively contributes to their enhancement, reflecting a commitment to the well-being of the nation.”
Mr. Deepak Sharma, CEO and Co-founder of MedLern, shares his insights saying, “India has made significant strides in the startup ecosystem, emerging as one of the world’s most dynamic and vibrant environments for new businesses.”
Acknowledging the pivotal role of government initiatives, Mr. Sharma highlights the impact of ‘Startup India.’ “Government initiatives such as ‘Startup India’ have played a pivotal role in fostering a conducive environment and providing support through funding, mentorship, and policy reforms.”
Sharma delves into the various measures the Government of India has taken to support and accelerate the growth of the MedTech industry. “The National Health Policy outlined the government’s commitment to promoting the development and deployment of medical technologies. It emphasized the importance of innovation and technology in improving healthcare delivery. The National Digital Health Mission (NDHM) is another promising step that the Government took in the direction of fuelling MedTech’s growth.”
Discussing the promising trajectory, Mr. Sharma outlines key trends in the MedTech industry. “The MedTech industry in India is marked by several promising trends. Rapid advancements in healthcare technology, including diagnostics, imaging, and telemedicine, are expected to revolutionize patient care and treatment methodologies.”
He emphasizes the collaborative nature of the industry and the potential for cutting-edge solutions. “Collaborations between healthcare providers and technology companies are likely to foster the development of cutting-edge solutions.”
Anticipating future growth, Mr. Sharma sheds light on government initiatives promoting domestic manufacturing and research. “Government initiatives promoting domestic manufacturing, research, and development, such as the Medical Device Parks and the PLI (Production Linked Incentive) Scheme, are anticipated to boost local production, reduce dependency on imports, and enhance the industry’s competitiveness.”
Additionally, he discusses the role of technology, especially artificial intelligence and data analytics. “The integration of artificial intelligence and data analytics into medical devices is poised to improve diagnostic accuracy and patient outcomes.”
As the MedTech sector adapts to the changing landscape, Mr. Sharma recognizes the impact of the COVID-19 pandemic. “The COVID-19 pandemic has accelerated the adoption of digital health solutions, remote patient monitoring, and telehealth services, shaping the future landscape of the MedTech sector.”
He concludes by highlighting the conducive environment for innovation and market growth. “Regulatory reforms and a more streamlined approval process for medical devices contribute to a conducive environment for innovation and market growth.”
Dr. Chetan Savaliya, Director of Satvam Nutrition, provides a broader perspective on India’s startup ecosystem. He said, “During my journey the growth of startups in India has been fueled by supportive government policies, technological advancements, and a thriving entrepreneurial culture. I’ve seen a significant shift in the mindset towards entrepreneurship, with a growing acceptance of risk and a willingness to explore uncharted territories. The government’s initiatives like Startup India and Make in India, alongside digital infrastructure, have played a crucial role. There’s heightened global recognition of India as a hub for innovation, providing opportunities for economic growth.”
Further highlighting the Government of India’s pivotal role in fostering the growth of plant-based herbal products and natural industry through supportive initiatives, Savaliya noted, “Favorable policies and regulatory frameworks has provided a conducive environment for businesses in this sector. The introduction of schemes like the Ayush Mission and National Medicinal Plants Board has specifically targeted the promotion of herbal products, encouraging research and development.”
Sharing his perspective on the future growth of nutraceutical manufacturing, Savaliya said, “The future of nutraceutical manufacturing in India, particularly in the realm of plant-based herbal products and natural supplements, holds promising prospects driven by evolving consumer preferences and global health consciousness. With an increasing focus on holistic well-being, there is a growing demand for ethically sourced, sustainable, and plant-based solutions. This trend aligns with the rich biodiversity of India, offering a diverse range of herbs and botanicals with potential health benefits.
As consumers become more discerning about the origin and composition of their dietary supplements, the nutraceutical industry in India has an opportunity to leverage its traditional knowledge in herbal medicine and Ayurveda. Regulatory reforms have streamlined the nutraceutical approval process, making it more attractive for manufacturers to invest in India.”
“Strategic partnerships, investment in research and development, and adherence to stringent quality standards will be crucial for companies to stay competitive. Embracing technological advancements in extraction processes and sustainable packaging can further enhance the industry’s appeal. The future of nutraceutical manufacturing in India is poised for growth, provided industry players align with evolving consumer preferences, leverage indigenous knowledge, and invest in sustainable and innovative practices,” he added.
Shikha Agarwal, the Nutritionist, and Owner at Nurture, shares her insights in the healthcare domain. “In my startup journey, I’ve seen India’s dynamic progress fueled by heightened health awareness and government initiatives like National Poshan Maah.”
Highlighting the impact of schemes like National Poshan Maah, Agarwal notes, “These schemes have elevated public interest in nutrition, propelling growth in the healthcare industry.”
“Looking forward, the sector is primed for expansion, driven by a health-conscious populace. Emerging trends point to a surge in demand for personalized nutrition and digital health solutions, offering startups abundant opportunities in this evolving landscape.” Agarwal added.
Wellness in Focus: Paving the Way for Health and Wellness Startups
Shifting gears to the health and wellness domain, Jatan Bawa, Co-Founder of Perfora, emphasizes the crucial role startups play in India’s growth, “Startups are playing a very important role in driving growth for our country. Across different domains, there is a massive opportunity for startups to address problems for people in India.”
Reflecting on the pre-pandemic focus on convenience and the post-pandemic shift to health and wellness, Bawa acknowledges the government’s proactive role. “Pre-pandemic, there was a lot of focus on convenience enabled by technology; however, post-pandemic, the focus has been primarily on improving health & wellness.”
He outlines the government’s crucial role in accelerating growth saying, “The Government of India has played a crucial role in accelerating growth in our industry. Policies promoting ease of doing business, financial incentives, and initiatives like ‘Startup India’ have provided the necessary support.”
Looking forward, Bawa sees a promising future for the health and wellness industry. “Looking ahead, the future of our industry in India appears promising. With a continued focus on health and wellness, there are ample opportunities for startups to innovate and address evolving needs.”
Highlighting the importance of collaboration, Bawa emphasizes the role of startups, industry players, and the government in realizing the full potential of the dynamic landscape. “The government’s sustained commitment to fostering entrepreneurship, coupled with emerging technologies, positions the Indian startup ecosystem for robust growth. As we move forward, collaboration between startups, industry players, and the government will be pivotal in realizing the full potential of this dynamic landscape.”
Adding another perspective from Perfora, Tushar Khurana, Co-Founder, expresses optimism about the future. “A decade earlier it would have been impossible to start and build a startup in a seamless way as we are doing it now.”
He acknowledges the government’s super supportive stance towards startups and encourages a focus on adding value to the country. “The government has been super supportive concerning its policies related to startups, and I’m quite optimistic about the future as there are so many problems to solve. This is the decade of startups. For India, this is the decade of entrepreneurship, and I would strongly suggest people think about how they can add value to our country.”
“In the course of our startup journey, the evolution of India’s startup ecosystem has been truly transformative. A mere decade ago, the seamless initiation and growth we now experience with Perfora would have been deemed implausible. The government’s support, underscored by startup-friendly policies, has been instrumental in this paradigm shift,” Khurana added.
Concluding on a note of partnership and resilience, Khurana envisions a flourishing era for startups and entrepreneurship. “Moving forward, a continued partnership between the government and startups will be pivotal, cultivating an ecosystem where ideas can germinate and contribute substantially to the nation’s trajectory. Embracing setbacks, cherishing minor victories, and valuing the entrepreneurial journey will be the linchpin for shaping success in this dynamic era of Indian entrepreneurship.”
This article has been contributed by Greeshma Unnikrishnan, Co-founder and Chief Operating Officer, Medprime Technologies.
Technology is driving the world in a direction thatwas unimaginable centuries ago. Today we live in an interconnected world, driving innovation, automation, and transformation. The field of healthcare is no exception with the health tech industry forging ahead and making progress by leaps and bounds. Owing to the flourishing landscape, demand for innovative health services, and government policies, the Indian health tech industry is predicted to grow to $5.5 billion by 2025. Increased funding and investments, government initiatives, and technological advancements have further bolstered the health tech startup ecosystem. It is interesting to see the current trends that are making headway into the future of the Healthtech startup ecosystem, especially the medical device industry.
Integration of Artificial Intelligence: Digital Microscopy and Beyond
With scientific innovations and technological advancements, digital microscopy like all other aspects of medical technology, has showcased continuous improvement in quality, accuracy, and efficiency for life science research, pathology, and more recently, telepathology and telemedicine. It supports researchers and doctors in the interpretation of images, immediate insights, and much more. The integration of AI and machine learning will further automate, reduce time and effort in manual practices, and increase accuracy. The cutting-edge technologies are revolutionary, providing intelligent interpretations, sophisticated analyses, precision, and reliable outcomes.
Remote Diagnosis: Breaking Boundaries of Geographies, Distance, and Time
The COVID-era took the world by storm but also brought to the forefront the loopholes in the healthcare industry. With borders shut and accessibility in question, remote diagnosis was the silver lining in the chaos. Remote diagnosis is here to bridge the gap of accessibility in healthcare and its adoption must no longer be a matter of choice but compulsion. The field of pathology has seen a transformative change in the form of remote diagnosis, with digital image sharing and timely analysis of images of pathological evidence that goes beyond distance, locations, and time enhancing research, consultation, and diagnosis. Rural India will see exponential growth in healthcare with remote diagnosis and telemedicine.
Telemedicine or Telehealth: Mainstream in New-Age Healthcare
Telemedicine is no longer an aspect of healthcare but must be recognised as mainstream in medicine as its full potential can bridge the major gaps in the system. It allows healthcare professionals to evaluate, diagnose, and treat patients in remote locations using telecommunications technology. Quality healthcare, universal health coverage, and accessibility are all by-products of traditional healthcare. Telehealth offers the advantages of synchronised data, time, and location independence, making treatment for patients more affordable and available.
Government Support and Initiatives for Healthcare Startups
Startup India, Digital India, Ayushman Bharat Digital Mission, National Digital Health Mission, and Make in India to name a few are the pillars of the healthcare startup ecosystem. The government policies and initiatives for startups are laying a conducive environment to thrive and flourish, thus making room for investments, innovations, and advancements in the field of digital healthcare.
The government initiatives are supporting and assisting in regulatory approvals, enhancing the ease of doing business, ease of raising capital and reducing the compliance burden for the startup ecosystem. The increased number of programs, workshops, and seminars in relation to the regulations eases startups into the process and overcome challenges that could be a hindrance while doing business. There is a solid regulatory framework for startups to avoid lapses and legal issues.
The (SIPP) Scheme for Facilitating Startups Intellectual Property Protection aids startups in terms of costs to be borne to file a patent, approvals of patents and trademarks, and access to patent and trademark attorneys. There are no professional fees and startups have to pay only the statutory fees making it easy for them to focus on other aspects of the business and save heavy costs which would otherwise add to the financial burden. This also helps startups protect their intellectual property, protecting them from larger companies that may look to copy the innovation by startups.
Earnest Money Deposit (EMD) is the bid security amount that startups are exempted from paying and can go ahead and participate in tenders and bids. EMD which is mandatory in the procurement process is eased for startups thus avoiding the burden on their financial capabilities. This provides increased opportunities for startups in terms of participation in bids and tenders as the financial cost is handled by the government.
Government e Marketplace (GeM), set up by the Government to make public procurement process transparent, efficient, and inclusive. It is a centralised and unified fully automated portal where common user goods and services can be procured, a dynamic, self-sustaining, and user-friendly portal for making procurement by Government officers. A category called Startup Runway makes the procurement of innovative patented products much easier by bypassing the need for buyers to get multiple quotations.
The tax holiday for startups came as a respite where startups can avail 100% tax exemptions on profits earned for a block of three years in the first ten years of incorporation.
The digital Healthtech startup industry is making healthcare accessible, affordable, and available. With the help of government policies and initiatives, the Indian healthcare startup ecosystem is forging ahead toward progress, growth, and innovation.
Muskaan Kapoor
