Profits, Pressure & Power: The Quiet Crisis Reshaping India’s Diagnostics Industry
India’s diagnostic market is expanding rapidly, yet manufacturers say survival is becoming harder than ever. It highlights a sector where demand is rising, but structural pressures threaten long-term stability.
Behind the headline lies a deeper imbalance: intense price wars, unrealistic credit cycles, and the growing expectation that manufacturers must absorb all costs—while intermediaries maintain higher mark-ups. industry insiders argue this model rewards aggressive procurement behaviour, not innovation or quality.
Who gains? Large distributors and procurement networks that thrive on volume, bargaining power, and extended credit leverage.
Who loses? Mid-sized and domestic diagnostic manufacturers forced to freeze prices despite rising compliance, logistics, and raw-material costs—ultimately limiting patient access to reliable testing.
What is often missing from public debate is the complexity behind each “test kit”: R&D, regulatory approvals, skilled labour, and post-market vigilance. These invisible layers rarely factor into pricing conversations, reinforcing the belief that diagnostics should be “as cheap as possible,” regardless of quality.
The media also underplays how frequent FOC (free-of-cost) trial demands distort the market, draining resources from companies already operating on thin margins.
Critical takeaway:
A sustainable diagnostic ecosystem will require more than competitive pricing—it needs shared responsibility, fairer terms, and transparency across the value chain.
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