Healthcare in India
Healthcare in India has become one of the largest sectors, both in terms of revenue and employment. The sector is developing rapidly in the areas of medical equipment, medical infrastructure, telemedicine and is seeing growth in medical tourism.
Partly because the number of sick people (due to a rapidly growing population) and health awareness in India have increased significantly in recent years, the demand for medical products and services has also grown. Rising economic prosperity has proved to be a driving force behind the affordability of generic medicines in India.
The Indian government has decided to invest heavily in the sector in 2020 and has increased the healthcare budget by almost a billion dollars. This was necessary, as health expenditure for this year has increased by about 19% compared to last year.
In addition, the Indian government has allowed 100% Foreign Direct Investment (FDI) in the medical device sector since 2020, opening up opportunities for foreign companies. With the large, available pool of highly skilled medical professionals, the industry is expected to be able to generate as much as $774 billion in revenue by 2030.
Market statistics on healthcare sector in India
By 2024, more than $200 billion will be spent on medical infrastructure in India.
By 2021, there will be 157 medical institutions across India.
By 2025, the government wants to increase public spending on healthcare to 2.5 per cent of GDP.
The healthcare IT sector will be worth USD 1 billion by 2020 and is expected to grow another 1.5 times.
India's healthcare sector is expected to reach a value of $372 billion by 2022.
Medical tourism is growing at 22-25 per cent in India, due to the relatively low cost of medical care. It contributes more than USD 2 billion to the Indian healthcare market.
The Indian telemedicine market will grow from USD 15 million to about 32 million in the next few years.
COVID-19 Impact
The Indian Government has mobilised over USD 2 billion in recent years to sustain the public health sector during the pandemic and increase access to care in the country.
Despite the Covid-19 outbreak in India slashing budgets, the Indian healthcare sector is expected to grow to a $132.8 billion industry by FY22. In FY17, the sector was still worth only $61.8 billion, meaning that the industry is showing an annual growth rate of around 16-17%.
In addition, the pandemic has brought to the surface the inefficiency of the current Indian healthcare system. Therefore, an improvement effort is underway to find ways to maximise revenue without increasing capacity.
Hospitals are therefore looking for solutions that allow them to treat low- to medium-risk patients via remote care, such as home visits and tele/video consultations. In this way, hospitals can free up their resources for more effective treatment of high-risk patients.
Growth drivers of the Indian healthcare sector
By the end of 2030, India is expected to be among the top three healthcare markets.
100% Foreign Direct Investment is allowed for Greenfield and Brownfield projects.
There is a growing demand for AI-based technologies.
The Government of India plans to increase spending on public health to 2.5% of the country's GDP by 2025.
The medical equipment sector is growing as fast as the growth in the number of patients.
A further increase in population, an increase in income and a rising life expectancy are important growth factors for this sector.
Key players in the healthcare industry in India
National healthcare players in India
Apollo Hospitals Enterprise Limited
Thyrocare Technologies Limited
Fortis Healthcare Limited
Dr Lal PathLabs
Medanta
Max Hospitals
AIIMS
Kauvery Hospital
Metropolis Healthcare
International healthcare players in India
Philips
Medtronic
UnitedHealth Group
CVS Health
McKesson Corporation
Cardinal Health
Johnson & Johnson
Baxter International
Interesting investment opportunities
Medical devices
Telemedicine and eHealth segment
Surgical robotics
Do you have a specific question about opportunities for your company or product in the Indian healthcare sector?
Read our articles on this sector here
