Health tech start-ups are revolutionizing the healthcare sector by designing and creating innovative medical technologies that are optimizing patient care outcomes, healthcare delivery systems, and reducing costs. The number of ventures in this sector has grown exponentially, from 452 in 2016 to nearly 90,000 in India today. There are over 8,000 health tech start-ups in India valued at around $2 billion and growing at a rate of almost 40%.
Union Finance Minister Nirmala Sitharaman highlighted India’s position as the third largest ecosystem for start-ups globally and the second in innovation quality among middle-income countries during her Budget speech. The government has allocated a Budget of Rs 283.5 crore for the Startup India Seed Fund Scheme, coupled with a National Data Governance Policy, to boost innovation and research by start-ups and academia. The Budget also proposed that losses incurred by eligible start-ups can be carried forward for ten years. This is a major reprieve to start-ups that frequently face financial hurdles during their initial stages of operations.