Economic viability of cutting-edge genetic treatments: balancing innovation and fiscal sustainability in India's healthcare sector

Abstract

Objective: Gene therapies seem like a real shift for conditions that were basically considered untreatable, but they also create major affordability headaches, particularly in developing economies, and especially in India. This study looks at the economic ripples of three recently approved genetic treatments, compared with standard care, specifically inside the Indian healthcare system. Methods: We did an economic modeling analysis. We used clinical trial data, real-world evidence, and several Indian health databases. The goal was to check cost-effectiveness, budget impact, and also whether there might be long-term savings if we look out across 30 years. The model included direct medical expenses, indirect costs, workforce productivity impacts, and caregiver burden too. We also built a framework meant to judge economic sustainability, kind of balancing those short-term budget limits with longer-term societal benefit logic. Results: The per patient treatment price was estimated between Rs. 10 crore and Rs. 18 crore (roughly USD 1.2 to 2.2 million). Even with all that upfront spending, the modeling suggested that, for certain therapies, there could be favorable long-run economic consequences in specific clinical situations. That happens mainly because lifetime disease management costs can drop, productivity may improve, and caregiver burden could be reduced. Cost-effectiveness did not stay the same everywhere , it shifted a lot by condition, by the patient group, and by how durable the treatment effect was. On top of that, there were broader economic aspects like how these therapies might help grow India’s domestic biotechnology sector, including through technology transfer and increased manufacturing capacity development, which is sort of the bigger picture that people mention. Conclusion: Gene therapies come with a kind of complicated economic trade-off, between big up-front spending and the maybe long-term gain, in the Indian setting. To make access truly steady, there needs to be creative financing mechanisms, like outcomes-linked contracts, installment arrangements, and other approaches that make payment feel less heavy at the start. At the same time, value based pricing strategies and health technology assessment frameworks have to be tailored for high cost, potentially curative interventions. Overall these results give policymakers, healthcare providers,and industry partners a firm evidence base for bringing genetic treatments into Indias healthcare system, while still keeping a balance between supporting innovation, and maintaining fiscal sustainability.