How do you perceive the current state of the diagnostics industry, and what key trends are shaping its evolution?
The Indian diagnostics industry, valued at ~$13 billion in FY23, has become a key player in the healthcare sector, offering attractive margins and immense growth potential. Projected to grow at a CAGR of ~14 per cent over the next five years, this expansion is driven by factors such as the rising prevalence of chronic diseases, an ageing population, increasing demand for preventive tests, and supportive government initiatives
The diagnostics industry is in a period of profound transformation. It is no longer limited to disease detection but is now a cornerstone of preventive and personalised healthcare. The growing awareness among consumers about early detection and wellness is a key driver, pushing the industry towards innovation. Key trends include the rapid adoption of Artificial Intelligence (AI) to improve diagnostic accuracy and reduce turnaround times. Digital pathology is reshaping the way pathologists work, enabling remote consultations and second opinions.
While the Indian diagnostics industry has witnessed rapid evolution and robust growth, its regulatory framework remains underdeveloped. Unlike many global counterparts, India lacks mandatory minimum standards for operating diagnostic laboratories, leaving the sector largely unregulated. Accreditation from bodies such as NABL (National Accreditation Board for Testing and Calibration Laboratories) is entirely voluntary, leading to significant variability in the quality and reliability of diagnostic services.
This regulatory gap creates challenges in ensuring uniformity in testing practices, equipment standards, and personnel qualifications, which can impact the accuracy of diagnostics—a critical component of healthcare. Without mandatory oversight, smaller or unaccredited labs may operate without adhering to best practices, potentially jeopardising patient safety and trust. Addressing this issue through comprehensive regulations and mandatory accreditation could significantly enhance the quality and credibility of diagnostic services in India.
How can diagnostics companies contribute to strengthening healthcare infrastructure in underserved regions, particularly tier 2 and 3 cities?
According to the Healthcare Federation of India, over 50 per cent of aspirational districts identified by NITI Aayog—regions characterised by limited access to essential infrastructure—are served by diagnostic chains. This highlights the growing significance of diagnostics in the healthcare continuum and underscores the deepening reach of diagnostic providers into India’s hinterlands.
Diagnostics companies can bridge healthcare gaps in underserved areas by making diagnostics more accessible and affordable. Establishing satellite labs and collection centres in tier 2 and 3 cities can reduce the time and cost burden on patients.
Leveraging telemedicine and digital platforms enables expert consultations even in remote locations. Partnerships with local governments and healthcare organisations can facilitate health camps and awareness drives.
What challenges do you foresee for the diagnostics sector in the next five years, and how is Agilus preparing to address them?
The modern diagnostics industry in India has successfully made high-end tests both accessible and economical for the population. Operating at some of the lowest price points globally, the industry exemplifies a unique balance between affordability and innovation.
For instance, the uninsured cost of lab tests in countries like the USA and New Zealand is approximately eight times and two times higher than in India, respectively. Even when compared to underdeveloped nations, Indian diagnostics remain significantly more affordable—test prices in Kenya are nearly four times higher, while those in Rwanda are two-and-a-half times higher than in India.
This cost-effectiveness is achieved without compromising on quality, as the industry continues to innovate its delivery models and prioritise patient-centric solutions. Through initiatives such as home sample collections, digital reporting, and preventive health packages, Indian diagnostic players have redefined healthcare accessibility, ensuring that affordability does not come at the cost of convenience or patient care.
Regulatory gaps, a shortage of skilled professionals in advanced diagnostic fields, and high customs duties on imported diagnostic equipment and kits continue to hinder its progress.
Establishing mandatory governance standards could address regulatory concerns, ensuring uniformity and quality across laboratories. Additionally, reducing customs duties on diagnostic imports would lower operational costs, enabling providers to offer advanced tests at more affordable rates.
To tackle the talent shortage, creating an allied body dedicated to certifying and accrediting lab professionals could elevate the profession’s stature and attract more talent to the field. By promoting laboratory technologists as a critical and rewarding career path, the industry can nurture a skilled workforce, laying the foundation for sustainable growth and innovation in diagnostics. By focusing on patient-centric innovations, stringent quality controls, and workforce development, Agilus Diagnostics is not only addressing industry challenges but also setting new standards for excellence in diagnostics.
How are emerging technologies like AI, machine learning, and big data analytics transforming diagnostics?
Emerging technologies are a game-changer in diagnostics. AI and ML are enhancing diagnostic precision, especially in areas like radiology and pathology, by identifying patterns and anomalies that may elude the human eye. These technologies also optimise laboratory workflows, reducing turnaround times significantly. Big data analytics is enabling a shift from reactive to predictive healthcare, analysing trends and identifying population health risks early. For example, genomics benefits greatly from AI, as algorithms can sift through vast datasets to identify genetic mutations and provide actionable insights. At Agilus Diagnostics, our digital pathology division uses AI for cancer diagnosis, allowing multiple pathologists to collaborate seamlessly, ensuring accurate and timely results.
With the rise of point-of-care testing and at-home diagnostics, how do you see the role of traditional labs evolving?
Traditional labs are evolving to complement point-of-care testing and at-home diagnostics rather than compete with them. While rapid testing fulfils the need for convenience, traditional labs will continue to be indispensable for specialised testing, advanced diagnostics, and confirmatory tests. They are becoming hubs for innovation, focusing on cutting-edge research and diagnostics, such as genomic sequencing and digital pathology. Traditional labs also play a vital role in data interpretation and integration, ensuring the accuracy and reliability of test results. Agilus Diagnostics is adapting to this shift by integrating digital platforms to offer a hybrid model that blends home collection services with comprehensive lab testing.
What regulatory changes would you like to see to support the growth and innovation in the diagnostics industry?
To foster growth and innovation, we need regulatory reforms that strike a balance between ensuring patient safety and encouraging innovation. A unified regulatory framework across states in India would reduce complexity and increase efficiency. Incentivising research and development through grants and tax benefits can boost innovation in advanced diagnostics. Regulatory support for adopting emerging technologies, such as AI and telepathology, would enable faster implementation and wider acceptance. Agilus Diagnostics advocates for a collaborative approach between industry stakeholders and regulators to create policies that enhance patient care while promoting industry growth.
One of the most important challenges today facing the diagnostic industry is the lack of qualified pathologists in proportion to the increasing population and growing complexity of diseases. It is also important to note that it takes over ten years or more to become a well-qualified pathologist in India. In fact, shortage of pathologists is a global concern. As per estimates by the World Health Organisation, there were an estimated 13.2 medical doctors worldwide. Pathologists account for about 0.5-1 per cent of all clinicians. A growing number of studies from many countries indicate a shortage of pathologists, an increase in workload, and a potential workforce crisis in the near future, which could all negatively impact patient care. Medical technologists are crucial to the Indian Diagnostic Industry, wielding expertise in clinical laboratory testing and are primarily responsible for ensuring the accuracy of laboratory processes and results. Their role is central to disease detection, management, and public health surveillance, contributing to early diagnosis and effective treatment. It is important to recognise this crucial work and cultivate the next generation of laboratory professionals while prioritising patient safety and care.
Can you share insights into your organisation’s plans for expansion, particularly in tier 2 and tier 3 cities? Are there specific partnerships or collaborations in the pipeline?
As the largest diagnostic chain in India, Agilus Diagnostics has established a robust presence in 25 states and 5 union territories, spanning 550 districts. Our network includes 410+ laboratories, 3,900+ customer touchpoints, and 14,000+ direct clients across 1,000+ cities, with a strong emphasis on tier 2 and tier 3 markets. This expansive reach allows us to deliver reports to patients in the shortest possible time, ensuring accessibility and efficiency. ‘
Internationally, our footprint extends across the SAARC region, Sub-Saharan Africa, Southeast Asia, CIS, Gulf, and the Middle East, with over 1,000 customer touchpoints, including more than 120 collection centres and 800 direct clients.
While geographical expansion remains a priority, we are equally focused on diversifying our test menu to include cutting-edge diagnostics. Special attention is being given to genomics and companion diagnostics, recognising their transformative potential in personalised care and precision medicine. By investing in advanced diagnostic capabilities and forging strategic partnerships, we aim to stay at the forefront of healthcare innovation, catering to the evolving needs of patients and healthcare providers alike.
Kalyani.sharma@expressindia.com
journokalyani@gmail.com