If we have selected the wrong experience for you, please change it above.
Healthcare and Pharmaceuticals enter the next phase of growth with AI-led transformation: Deloitte India
- Hospital technology: Robotic surgery and AR/VR (50 percent) and AI and GenAI (47 percent) are seen by hospital leaders as the technologies expected to have the greatest transformational impact.
- Hospital sector: 60 percent of hospital CXOs expect the sector to grow by 10–15 percent in FY27, with nearly 40 percent planning to add more than 1,000 beds, driven by insurance-led demand and continued capacity expansion, including a growing focus on tier-2 and tier-3 markets.
- Pharmaceutical sector outlook: 86 percent of pharmaceutical industry CXOs expect 5–15 percent growth in FY27, as India’s pharmaceutical sector advances towards a US$130 billion market by 2030.
- Technology and policy priorities: While 76 percent of pharma CXOs are prioritising robotics, automation and AI-driven regulatory tools, 62 percent are calling for faster and more transparent approval processes to strengthen competitiveness and accelerate market access
Delhi, 29 July: India’s hospital and pharmaceutical sectors are entering FY27 with a shared sense of cautious optimism, according to two separate Deloitte India surveys, the India Hospital Survey: FY27 Outlook and the Indian Pharmaceutical Industry Survey: FY27 Outlook. Together, the surveys of CXOs from India’s leading hospital chains and pharmaceutical firms point to an industry where both sectors are moving beyond volume-led expansion towards a more disciplined, technology-enabled and quality-led growth model, with artificial intelligence (AI), digital infrastructure and supportive government policy emerging as common threads.
“India’s healthcare and life sciences story is entering a defining decade. Our hospital sector is projected to grow by 10 to 15 percent in FY27, backed by a wider insurance coverage and a decisive shift towards AI-enabled specialised care. On the other hand, India’s pharmaceutical industry, long recognised as the pharmacy of the world, is set to grow by 5 to 15 percent in FY27, driven by strong generics demand, speciality portfolio expansion and continued export growth. Together, these trajectories capture the growing potential of India: a nation moving from manufacturing medicines for the world to developing the therapies, technologies and care models the world will increasingly depend on”
Joydeep Ghosh, Partner and Leader, Life Sciences & Health Care, Deloitte South Asia.
On the hospital side, 60 percent of CXOs expect the sector to grow 10–15 percent in FY27, supported by rising insurance penetration, growing demand for organised healthcare and continued bed expansion, with private equity and internal funding supporting future growth plans. Hospitals are also accelerating their shift towards specialty care and digitally-enabled delivery models, with half of the CXOs identifying robotic surgery and AR/VR as having the strongest business impact, while 83 percent have integrated Enterprise Resource Planning (ERP) systems with core hospital information systems and 57 percent report readiness to integrate with the government’s National Health Claims Exchange (NHCX).
Companies are specifically prioritising research on biologics and biosimilars, New Chemical Entities (NCEs) and digital-enabled drug discovery in the near term. Gene and cell therapy and targeted delivery platforms are part of their longer-term innovation strategy. Moreover, around 55 percent of the CXOs plan to increase manufacturing capacity by 10 to 30 percent in the next two to three years to support incremental portfolio growth.
The findings highlight the key forces shaping the next phase of growth across India’s hospital and pharmaceutical sectors:
Hospitals:
Current standing
- Over 440 million Ayushman cards issued; out-of-pocket healthcare expenditure down from 62.6 percent (FY15) to 39.4 percent (FY22) on rising insurance penetration.
- The private sector now accounts for approximately 65 percent of hospital beds.
- Sustained investments in healthcare capacity have improved the doctor-to-population ratio to 1:811, supported by 818 medical colleges and a nursing workforce of ~39 lakh.
Room to grow
- Bed density remains at 1.6 per 1,000 people, signalling significant headroom, especially beyond metro markets.
- Hospitals are shifting to specialised care (organ transplants, robotic-assisted procedures) and investing in AI, enterprise platforms and integrated data ecosystems, backed by widening insurance coverage, corporate health programmes and steady investor interest.
Pharma:
Current standing
- India ranks third globally by volume and eleventh by value in pharmaceuticals, with the highest number of US FDA-approved manufacturing plants outside the United States.
- Exports have surged ~16-fold from US$1.9 billion (FY01) to over US$31 billion (FY26), reaching more than 190 countries.
Room to grow
- India’s STEM talent base, growing CDMO capacity and an AI-led R&D ecosystem within GCCs are positioning the country as a hub for GLP-1s, oncology, biologics and cell-and-gene therapies.
- A looming global patent cliff worth over US$200 billion opens substantial market space for Indian manufacturers.
About the India Hospital Survey: FY27 Outlook
The survey captures perspectives from CXOs at leading Indian hospitals with annual revenues exceeding INR500 crore and housing over 500 beds. It examines growth priorities, financial performance, capacity expansion, portfolio strategy, workforce planning, technology adoption and regulatory reform ahead of FY27.
About the Indian Pharmaceutical Industry Survey: FY27 Outlook
The survey captures perspectives from CXOs at leading Indian pharmaceutical companies with annual turnovers exceeding INR10,000 crore. It examines growth outlook, market expansion, product development, sustainability, technology adoption, workforce planning and regulatory compliance ahead of FY27.
About Deloitte
This press release has been issued by Deloitte Touche Tohmatsu India LLP
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Media contact
Pallavi Das
Deloitte Shared Services India LLP
Email: paldas@deloitte.com