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Driven by pharma services and technology, the healthcare innovation market in India is expected to reach $60 billion by 2028, according to a report on Wednesday.

In FY 2023, the overall Indian healthcare market was valued at about $180 billion. It is projected to grow at approximately 10-12 per cent CAGR to reach $320 billion by FY 2028.

Healthcare innovation market, currently valued at $30 billion, accounts for 15 per cent of the overall market.

The new report by Bain & Company and HealthQuad, showed that pharma services and healthtech with vaccines and biotech, and medtech will remain the largest segments and drive about 80 per cent of the growth.

Further, consumerisation of health, reconfigurations to the global healthcare value chain, a deepening of Indian scientific and technological expertise, and regulatory tailwinds are other factors that will boost growth in innovation.

"From cutting-edge pharma services to disruptive healthtech and medtech advancements, India's healthcare innovation landscape is experiencing a remarkable transformation. With its focus on innovation, quality, and cost-effectiveness, India's healthcare innovation market is addressing domestic needs and making its mark on the global stage," said Aarthi Rao, Partner at Bain & Company, in a statement.

"This $30 billion sector is fuelled by rising investments, supportive government policies, a deepening scientific talent pool and brimming with potential in nascent fields such as Biotech and MedTech," he added.