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Healthcare AI : India has built the foundation, what are the 3 barriers to scale-up ?

For health-tech professionals and MedTech companies, the bottleneck is no longer building AI that works, it is navigating the data, regulatory and payment gaps that prevent deployment at scale.
By Wocult Affairs
10 August 2026
India's AI healthcare tools are stuck in pilot mode, new paper finds

A knowledge paper released at the ninth edition of India Medical Device 2026 in New Delhi has found that, despite rapid technological progress, few AI-enabled MedTech solutions have made the jump from controlled pilots to routine clinical use across India's health system.

The paper titled AI in MedTech: Revolutionising Healthcare Through Artificial Intelligence was jointly developed by Praxis Global Alliance and FICCI, and released by Union Health Minister J P Nadda at Vigyan Bhawan on 8 August 2026.

It identifies three specific barriers holding back scale. The first is fragmented health data: limited interoperability and insufficient real-world evidence make clinical validation, regulatory approval and post-market monitoring harder to achieve. The second is regulatory uncertainty, the paper argues that adaptive AI systems require predictable, lifecycle-based frameworks that can account for software updates and continuous performance monitoring. The third is inadequate reimbursement and procurement: existing payment systems often do not recognise the value created by AI-enabled technologies, which limits both provider adoption and industry incentives to continue investing.

The paper says the central challenge is no longer proving that AI works, but building the ecosystem required to scale it. It identifies AI-enabled diagnostics as the most immediate large-scale opportunity, arguing the technology can extend specialist expertise to primary and secondary care, improve productivity and reduce inequalities in access to healthcare.

The five priorities outlined include strengthening AI-ready health data, creating lifecycle-based regulatory frameworks, expanding reimbursement mechanisms, scaling AI-enabled diagnostics and promoting coordinated action across government, regulators, industry, healthcare providers and academia.

The paper concludes that if regulation, evidence generation, reimbursement and procurement are developed together, AI-enabled MedTech could become a foundational layer of healthcare delivery in India.

Note: Praxis Global Alliance and FICCI jointly developed the paper. Check Praxis's Reports & Publications page for the full release. Alternately, the paper is available here https://www.pib.gov.in/PressReleasePage.aspx?PRID=2296569&reg=1&lang=1

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