India's Diagnostics Industry
COVID-19 Testing Boom
How COVID-19 testing created a huge temporary boom for labs in 2020-21, how RT-PCR capacity scaled up, and what happened after demand fell.
COVID-19 transformed diagnostics.
Testing surge
India ran hundreds of millions of RT-PCR and antigen tests.
Capacity
Labs expanded capacity quickly; ICMR approved thousands of labs.
Price caps
States capped RT-PCR prices, which fell sharply over time.
Windfall
Lab chains earned record revenues and profits in 2020-21.
After
- COVID testing collapsed after 2022.
- Labs used new capacity and brand awareness for other tests.
Lesson
Demand shocks create windfalls that don’t last.
The RT-PCR queue
In 2021, people queued outside labs for RT-PCR tests needed for travel.
Thinking the COVID testing boom lasted
It faded after 2022.
Key takeaways
- COVID created a testing surge.
- Labs expanded capacity.
- Prices were capped.
- The boom faded after 2022.
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