Philips India bets on healthcare, AI and R&D for next growth phase

Mumbai: Philips India is betting on rising healthcare infrastructure spending, artificial intelligence and a growing research and development footprint to drive its next phase of growth, according to an ET report.

India has become an increasingly important part of the healthcare technology company’s global operations, with nearly 8,500 employees in the country, accounting for about 12.5 per cent of its global workforce.

The company has invested around Rs 1,750 crore in India over the past four to five years across manufacturing, innovation and R&D. Its India operations are increasingly contributing to products and technologies used globally, with software developed in the country featuring in one in two Philips machines sold worldwide.

Bengaluru has also emerged as a key centre for the company’s artificial intelligence and innovation work, strengthening India’s position within Philips’ global R&D network.

Philips expects India’s expanding healthcare infrastructure to create opportunities across its portfolio as investments in district hospitals and primary healthcare centres increase.

The company’s operations span diagnostic imaging, including MRI, CT, X-ray and ultrasound, as well as cardiac care, connected care and personal health.

The company also sees growth potential in sleep and respiratory care as awareness of sleep-related disorders increases in India. Greater awareness is expected to encourage more people to seek diagnosis and treatment for sleep-related conditions.

Philips remains positive on its broader India growth outlook and expects to continue investing in the country to support expansion.

Artificial intelligence is emerging as another important growth area for Philips, with the company increasingly integrating AI into healthcare technologies while maintaining a focus on clinical oversight.

A recent Philips report found strong acceptance of AI among Indian clinicians and patients. About 71 per cent of clinicians surveyed said AI enables them to see 10 additional patients a week.

However, the report also highlighted concerns around trust, training and governance. Around 77 per cent of clinicians said their organisations lacked clear processes for monitoring AI tools, while 69 per cent expressed concerns about AI making errors.

Philips’ approach is centred on using AI to support healthcare professionals rather than replace clinical judgement. The company sees AI as a tool that can assist clinicians with insights and recommendations, while final medical decisions remain with healthcare professionals.

Philips is also facing increasing competition from Chinese medical-device companies in India. Rather than competing purely on price, the company is focusing on the value its products and technologies offer to patients and clinicians.

With healthcare infrastructure expanding, AI adoption accelerating and India’s contribution to Philips’ global R&D operations deepening, the country is increasingly becoming both a growth market and an innovation hub for the company.