SECTORS AT THE INDIA PAVILION

Healthcare

WELLNESS AND LONGEVITY
The Indian Healthcare Sector Is Projected To Reach US$ 372 Billion By 2022

This industry is estimated to reach US$ 132 billion by 2023

Diagnostics industry in India is currently valued at US$ 4 billion

Telemedicine market to rise at a CAGR of 20% reaching US$ 32 millionby 2022

The number of medical colleges in India increased to 529 by 2019

Attracted FDI worth US$ 6.72 billion by March 2020

Indian Surgical Robotics to expand at a CAGR of 20% to hit the size of US$ 350 million by 2025

To create 1 million more skilled healthcare providers by 2022

India is the 2nd most visited Medical Value Tourism (MVT) destination in Asia

The healthcare sector encompasses hospitals, medical equipment and devices, clinical trials, outsourcing, telemedicine, medical tourism and health insurance. An overview of the different sub-sectors in the industry is presented below:

Accounting for 80% of the total healthcare market, the hospital industry in India has been witnessing a huge demand from both global and domestic investors. This industry is estimated to reach US$132 billion by 2023,  
growing nearly 100% from US$ 61.8 billion in 2017 at a CAGR of 16-17%. 

The diagnostics industry in India is currently valued at US$ 4 billion. The immense potential of this sub-sector can be underscored by the fact that the organized part in this segment constitutes a mere 25%, of which 15% includes labs and 10% includes radiology.

Telemedicine and government initiatives like e-health combined with tax benefits and incentives are driving the latest healthcare trends in the Indian sector. The telemedicine market in India is expected to rise at a CAGR of 20% reaching US$ 32 million by 2022.

Only about 20% of the population in India is covered by some form of health insurance plan. The overall life expectancy in India is projected to exceed 70 years by 2022. Complementing this fact is a rising disposable income of a vast pool of customers which upholds the health insurance segment. This presents a tremendous opportunity for anybody who can identify and utilize it.

The Government’s resolve in fortifying India’s health  infrastructure is evidenced through the following measures:

  • The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY) is the largest Government-funded healthcare program targeting more than 500 million beneficiaries. US$ 919.87 million has been allocated under Union Budget 2020–21 to benefit 125.7 million families, 8,059 private hospitals, 7,980 public hospitals and 19 AYUSH packages under the PMJAY program.
  • Under the Union Budget 2020–21, US$ 9.30 billion and  US$ 300.47 million have been allocated to the Ministry of Health and Family Welfare and the Department of  Health Research, respectively.
  • The Government of India is planning to increase public health spending to 2.5% of the country’s GDP by 2025. It plans to create 1 million more skilled healthcare providers by 2022.
  • The number of medical colleges in India had increased to 529 by FY19.

Healthcare has been at the forefront of attracting FDI inflows. Some of the developments in the sector are as follows:

  • 100% FDI has been permitted for the construction of hospitals and greenfield projects under the automatic route and brownfield projects under the government route.
  • Hospitals and diagnostic centres attracted Foreign Direct Investment (FDI) worth US$ 6.72 billion between April 2000 and March 2020.
  • Healthcare technology in India’s surgical robotics market is estimated to expand at a CAGR of 20% to hit the size of US$ 350 million by 2025.
  • The value of merger and acquisition deals across hospitals have witnessed a record 155% jump to US$ 1.09 billion through FY19.
  • In May 2020, Carlyle Group acquired 74% stake in animal health-focused pharmaceutical company, SeQuent Scientific Ltd, for US$ 224.15 million.

In a global medical travel market valued at US$ 44.8 billion with a CAGR of 21.1%, India is the 2nd most visited Medical Value Tourism (MVT) destination in Asia. According to a Ministry of Tourism Report, foreign tourist arrival on medical visas increased by a whopping 140% between 2013 and 2015. 

With the goal of providing the highest quality treatment at the lowest cost, India has made a solid reputation in the fields of organ transplantation and complicated cardiac, cosmetic and orthopaedic surgery. India has become a world leader in the field of Medical Tourism owing to several factors. Some of these include exceptional patient care, numerous JCI-Accredited Hospitals, a vast pool of English-speaking medical professionals and a healthcare system that offers treatments at 10% of the cost in developed countries.

India, with its vast user base, technological innovation, increasing FDI inflow and world-class health solutions at highly competitive rates is accentuating its voice in the global healthcare market. We invite readers and stakeholders to be a part of this conversation.

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