As I’ve been reading about India’s healthcare industry lately, I learned that the country’s ties with European businesses are growing with acceleration, driven by mutual benefits in digital health innovation, pharmaceuticals, and medical technologies. In this collaboration, European businesses are attracted to India’s growing digital health market, while Indian firms are keen to access European expertise and markets.

The global demand for digital healthcare solutions is growing rapidly, and the Indian market is playing a significant role in this expansion. European healthcare businesses are increasingly attracted to India’s digital health sector due to its rapid growth, supported by initiatives like India’s Digital Health Mission and advancements in AI, telehealth, and big data solutions.

Indian companies are also keen to collaborate with European businesses to access expertise and technologies from mature healthcare markets in Europe.

The events such as the Europe-India Digital Health Summit (2024) highlight these emerging collaborations. This summit held in May of 2024 emphasized the need for partnerships between Europe and India in areas like precision medicine, population health, and digital transformation in healthcare, facilitating cross-regional business growth and networking among investors from both regions.

In terms of investment trends, VC funding in digital health globally, including India, has remained stable through 2023-2024, indicating continued interest in the sector, with companies working on telehealth and personalized care solutions. This provides a solid foundation for collaborative projects between Indian and European healthcare companies.

The collaboration is further enhanced by the ongoing negotiation of the India-EU Free Trade Agreement, which is expected to make it easier for Indian firms to access European markets and vice versa. This will foster more collaborations, particularly in healthcare technology and digital health, which are seen as priority sectors.

To provide examples of successful collaborations, I’d like to mention India’s Apollo Hospitals, a company that has embraced AI-driven diagnostics and Practo that is advancing telemedicine. However, both companies admit via their publications that they encounter infrastructure and data protection challenges.

At the same time, Europe-based businesses such as Siemens Healthineers and GE Healthcare are expanding their involvement in India. I could not find detailed statistics on the exact number of partnerships between businesses of India and Europe, but the trend reflects increasing collaboration in digital health and innovation.

Factors influencing this growth are evident; they are-

• rising demand for digital healthcare solutions,
• cost-effective technologies, and
• regulatory alignment.

Speaking generally, there are three main areas where Indian and European businesses that join forces in digital transformation, face challenges:

1. Infrastructure limitations: Poor internet access in rural areas limits telemedicine and digital health platforms.
2. Data security: Managing sensitive patient data with stringent privacy regulations is complex, especially with cybersecurity threats.
3. Interoperability: Integrating existing healthcare systems with new digital solutions is a hurdle due to fragmented technologies.

To help overcome the obstacles, governments are taking steps toward signing the India-EU Free Trade Agreement ,which is currently under negotiation; When signed, it can further boost these collaborations in the coming years.

Initially, the India-EU Free Trade Agreement (FTA) intended to foster closer economic ties between India and the European Union. Talks in this direction were relaunched in 2022 after a 9-year pause, aiming to create a balanced, comprehensive, and mutually beneficial trade agreement. The FTA includes negotiations on three key agreements: a free trade deal, an Investment Protection Agreement (IPA), and a Geographical Indications (GI) agreement, with discussions covering areas such as market access, investment frameworks, and regulatory environments.

India’s trade with the EU is already substantial, with bilateral merchandise trade reaching USD 116.36 billion in 2021-2022, representing a significant growth of 43.5%. India enjoys a trade surplus with the EU, making this trade relationship particularly important for its economy. The FTA is expected to enhance supply chain security, improve economic opportunities, and bring mutual benefits to businesses in both regions. The negotiations are part of India’s broader strategy to establish trade agreements with key global economies.

Although no specific timeline for the final agreement has been set, both sides aim to conclude the discussions as soon as possible, with ongoing negotiations expected to continue into 2024. The agreement, once finalized, could provide a significant boost to trade, investment, and economic collaboration between India and the EU.