THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 7, 2026

India should build on its position as the ‘pharmacy of the world’ and emerge as a global medical and healthcare destination, Union Commerce and Industry Minister Piyush Goyal said on Monday, calling for greater investment in medtech, research, innovation and healthcare services.

Addressing the Pharma Machtech and Labnext Expo 2026 here, Goyal said the healthcare opportunity extends far beyond treatment and includes prevention, wellness, caregiving, diagnostics, laboratory capabilities, medical devices, telemedicine, digital health solutions, innovation and research and development of newer drugs and equipment.

He urged the pharmaceutical, medical equipment and healthcare industries to leverage the opportunities created by India's expanding network of free trade agreements (FTAs), which he said could provide preferential market access to economies accounting for a combined GDP of up to USD 75 trillion.

"Prior to 2014, India's free trade agreements collectively covered economies with a GDP of around USD 10 trillion. In the last four to four-and-a-half years, nine free trade and bilateral trade agreements have been finalised, covering economies with a combined GDP of around USD 60 trillion," Goyal said.

Ongoing negotiations could further expand this coverage to around USD 75 trillion, he said, adding that such agreements would open up opportunities not only for lower-duty merchandise exports but also for services and mobility.

Goyal said the medical and pharmaceutical machinery, consumables and allied sectors represent a major growth opportunity for merchandise exports, import substitution and services exports.

The healthcare ecosystem, he said, has the potential to generate crores of jobs, thousands of business opportunities and lakhs of new startups, particularly in the medtech segment.

"This sector can create business opportunities, jobs and income for our young people while also contributing to the availability of quality healthcare across the country," he said.

The minister called for a stronger startup incubation ecosystem focused on medtech, medical equipment and consumables, along with improvements in product design, copyrights, patent laws and the broader intellectual property ecosystem.

He also advocated deeper collaboration between Indian companies and overseas R&D centres, inviting global innovators and large pharmaceutical companies to set up operations and design centres in India.

India should pursue technology partnerships, stronger buyer-seller relationships and joint ventures to accelerate self-reliance in the healthcare sector, Goyal said.

"India need not reinvent the wheel," he said, emphasising the scope for bringing suitable global technologies to India while taking Indian technologies to international markets through co-designing, co-development, licensing, knowledge sharing and technology transfer.

Goyal stressed the importance of self-reliance in research, medicines and medical equipment, saying Export Promotion Councils and industry stakeholders have a key role in strengthening domestic capabilities.

He said recent amendments to the Goods and Services Tax (GST) framework were aimed at improving affordability and creating greater opportunities for the sector, while highlighting the government's commitment of Rs 1 lakh crore towards research and development, innovation and funding.

The minister urged industry to utilise these opportunities to develop newer equipment, innovative drugs and medicines and strengthen India's position in the global healthcare value chain.

He also stressed the need to build resilient healthcare supply chains through greater indigenisation of equipment, recalling shortages of oxygenators and ventilators during the COVID-19 pandemic.

The experience of the pandemic, he said, underlined the importance of domestic capabilities and resilient supply chains, while making clear that there should be "zero compromise" on quality and standards.

India should aspire not merely to provide high-quality healthcare to its own citizens but also to deliver wellness and healthcare services to the world, Goyal said.

He outlined the potential of an integrated healthcare ecosystem involving Indian medical equipment and pharmaceutical companies, doctors, nurses and caregivers, technicians, hospital administrators, management professionals and engineering personnel.

Artificial Intelligence (AI), he said, would bring greater efficiency to healthcare and help professionals perform their work better, smarter and faster. At the same time, human caregiving and nursing would remain indispensable.

Goyal also pointed to India's cost advantage in research and development, saying greater collaboration among industry, academia, medical colleges, IITs and other centres of excellence could substantially expand the country's R&D capabilities.

He highlighted opportunities in innovation, product design, clinical trials and domestic manufacturing of medical equipment.

Goyal said 100 per cent foreign direct investment (FDI) is permitted through the automatic route in the sector. Referring to the Economic Survey 2025-26, he said India's pharmaceutical industry was shifting from a volume-driven model towards value creation.

The minister further called for strengthening the critical component ecosystem and domestic manufacturing capabilities by ensuring access to high-quality equipment.

He proposed setting up shared testing infrastructure and facilities where Indian medical equipment could be tested, benchmarked against the best global products, certified and demonstrated to international customers.

The government, he said, would support the acquisition of the best technical testing equipment for such facilities in government-sponsored or university laboratories.

Goyal expressed confidence that coordinated efforts by industry, entrepreneurs, startups, researchers, healthcare professionals and other stakeholders would help accelerate India's transformation into a developed nation by 2047.

India, he said, has the opportunity to combine its strengths in pharmaceuticals, medtech, research, manufacturing and healthcare services to build an integrated ecosystem capable of serving both domestic and global markets.