Startup jungle in India
The Indian diagnostics market holds a wide range of different segments, is rapidly growing and very price-sensitive. Various types of product solutions find space to flourish and expand, especially if they are user-oriented, i.e. affordable and usable, have a good user experience and are of high quality. Also, aspects like accessibility, distribution, storage or local conditions like extreme weather conditions need to be considered depending on the product. International LifeSience companies have good chances to enter the market but their technologies might have to be modified to really fit the Indian end-users needs and local framework mentioned above. To find out about those conditions (user) research is the main core but as many companies and startups don’t have time to invest into this or the access to such knowledge is limited, collaborations with Indian partners can be very helpful to fill this gap. India came a long way from a third world country to a newly industrializing country with a strong competitive economy and a lot of innovation potential. It is estimated that by 2030 it will have almost climbed to the top of the global Internet market, and its per capita income will have doubled by 2024. The health sector in particular is one of the fastest growing. In 2022, the IBEF (India Brand Equity Foundation) expects this sector to reach 372 billion US dollars, making it one of the most important markets for high-end diagnostic services worldwide. Germany therefore has a strong interest in India's growing domestic market, which generally grows by more than 7.3% annually and serves 1.3 billion people. It is India's largest European trading partner. However, small and medium-sized enterprises in particular are reluctant to invest. The reasons for this are the domestic bureaucracy, the poor infrastructure, complicated labour laws, lack of expertise among employees, high taxes and corruption. Nevertheless, Germany ranks 7th among direct investors. Between 2000 and 2017, German companies provided around 9.7 billion US dollars for this purpose.