India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth by 2020 In 2015, Indian healthcare sector became the 5th largest employer, both in terms of direct as well as indirect employment, with total direct employment of 4,713,061 people. Indian healthcare sector, one of the fastest growing industries, is expected to advance at a CAGR of 22.87 per cent during 2015–20 to reach US$ 280 billion by 2020. There is immense scope for enhancing healthcare services penetration in India, thus presenting ample opportunity for development of the healthcare industry. Healthcare revenue in India is set to reach US$ 280 billion by 2020; expenditure is likely to expand at a CAGR of 17 per cent over 2011–20. India is the largest exporter of formulations with 14 per cent market share and ranks 12th in the world in terms of export value. Double-digit growth is expected over the next 5 years.

Segments of HealthCare –

Healthcare has become one of India's largest sectors both in terms of revenue and employment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players. During 2008-20, the market is expected to record a CAGR of 16.5 per cent. The total industry size is expected to touch US$ 160 billion by 2017 and US$ 280 billion by 2020. The Ministry of Health is focusing on development of technologies for the treatment of diseases like Cancer and TB. Government is emphasising on the eHealth initiatives such as Mother and Child Tracking System (MCTS) and Facilitation Centre (MCTFC). Indian companies are entering into merger and acquisitions with domestic and foreign companies to drive growth and gain new markets.

Share in HealthCare spending in India, 2015

The private sector has emerged as a vibrant force in India’s healthcare industry, lending it both national and international repute. Large investments by private sector players are likely to contribute significantly to the development of India’s hospital industry, which comprises around 80 per cent of the total market. In India, private healthcare accounts for almost 74 per cent of the country’s total healthcare expenditure. Private sector’s share in hospitals and hospital beds is estimated at 74 per cent and 40 per cent, respectively. The main factor contributing to rising medical tourism in India is presence of a well-educated, English-speaking medical staff in state-of-the art private hospitals and diagnostic facilities.