'Krsnaa Diagnostics has noted in an investor presentation that despite having the world's largest population,India's diagnostics industry remains under-penetrated—with one of the lowest diagnostics access levels globally, lagging behind even other developing nations such as Brazil and Saudi Arabia. The sector is poised for strong growth, with a projected CAGR of 14% over FY23–28.

In India, there is a mismatch between the economic importance of diagnostics in actual medical treatment and its relatively small share (6%) in the country’s overall healthcare market. The Government of India (GoI) estimates that diagnostics accounts for 10% of the out-of-pocket expenditure at public healthcare set ups that often lack modern diagnostics offerings.

India’s diagnostics market is projected to grow to $25 billion by FY 28 from $13 billion. Two-thirds of diagnostic tests are conducted outside metro cities, underscoring the significant untapped potential for organized players to expand...

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