How AI startups are redefining Indian health care
This article is authored by Rahul Paith, CEO, DST MATH.
Artificial Intelligence (AI) in present-day force is reshaping industries, and health care is at the forefront of this transformation. In India, where the sheer scale and complexity of the health care ecosystem often stretch resources thin, AI-powered startups are emerging as powerful catalysts for change. Startups powered by AI are at the forefront of this transformative wave, offering innovative solutions that enhance medical diagnosis, improve patient monitoring, accelerate drug discovery, and optimise the overall delivery of health care services.

According to NITI Aayog, the potential of AI to transform India's healthcare sector is immense. The technology offers solutions to many of the challenges faced by India's health care system, especially in terms of dealing with a shortage of health care professionals in the most remote corners of the world’s most populous country. To address these longstanding gaps, the Prime Minister Narendra Modi-led government is also backing the power of AI in a significant way. In the 2025 Union Budget, over $1 billion has been earmarked to support the growth of AI-driven digital health services. Coupled with efforts to expand broadband connectivity to primary health centres under Bharat Net, these moves aim to bridge the rural-urban health care divide and empower AI-based solutions at the grassroots level.
Moreover, the government’s push to digitise the health care system through the National Digital Health Mission—which envisions a unified health ID for every citizen—will create massive volumes of structured data. This, in turn, provides fertile ground for the development and scaling of AI applications across the health care spectrum.
India’s health care system has long been challenged by overburdened hospitals, a poor doctor-to-patient ratio, and limited reach in rural areas. AI startups are tackling these issues with intelligent, real-time solutions that amplify the capabilities of health care professionals and extend care to underserved regions.
Startups like Augsidius, Carewell360, and VaidhyaMegha are leading this AI-driven disruption across different segments of health care. Augsidius has developed AstraAI, an intelligent assistant for doctors that provides real-time decision support with access to over 20,000 disease profiles and clinical guidelines. On the other hand, Carewell360 is making women’s health services more accessible in non-metro areas through a phygital platform that offers discreet, on-demand gynaecology consultations and wellness care. Meanwhile, VaidhyaMegha equips hospitals with cloud-based AI tools to streamline diagnostics, enhance patient management, and optimise clinical workflows—solving for both patient experience and operational efficiency.
The synergy between startup innovation and government support is also being echoed in the private sector. Tata Elxsi, is investing in AI-enabled imaging tools, while Google has partnered with Indian medical device startups Forus Health and AuroLab to scale AI-led screening for diabetic retinopathy screenings to more clinics across India.
Beyond direct patient care, AI is playing a crucial role in boosting operational efficiency across the healthcare value chain. Startups are building systems to automate time-consuming backend processes like appointment scheduling, electronic health records (EHR) management, and billing. AI-driven predictive analytics is enabling hospitals to forecast patient inflow, manage medical inventory, and optimise staff allocation. Chatbots and virtual assistants are handling routine queries, post-treatment follow-ups, and even mental health support, helping healthcare providers scale their services without compromising on quality.
Such tools are critical for relieving pressure on India’s health care professionals, allowing them to focus more on delivering core clinical care while AI handles the rest.
One of the most transformative roles AI can play in India is in bridging the urban-rural divide. With the rise of telemedicine, mobile diagnostics, and voice-enabled tools in regional languages, AI is making health care more inclusive and accessible.
Startups like Carewell360 and SETV, among others, are enabling patients in Tier 2 and Tier 3 cities and even remote villages to receive timely consultations, screenings, and treatment guidance. AI-powered speech and text recognition is overcoming language and literacy barriers, while mobile platforms are delivering diagnostic and follow-up services directly to patients’ homes. Backed by rising smartphone penetration and national programmes like Ayushman Bharat Digital Mission (ABDM), these technologies are making health care truly location-agnostic and scalable.
As India navigates the complexities of delivering quality health care at scale, AI startups are emerging as vital allies in driving systemic change. By combining deep-tech innovation with on-ground health care needs, these startups are not only solving today’s challenges but also shaping the blueprint for a more resilient, inclusive, and patient-centric future. With continued support from policy-makers, health care providers, and investors, the next decade could well belong to India’s AI-powered health tech revolution—where smart, scalable solutions ensure that quality care reaches every corner of the country.
This article is authored by Rahul Paith, CEO, DST MATH.
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