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 –
Hospitals
|
a. Government hospitals – It includes
healthcare centres, district hospitals and general hospitals
b. Private hospitals – It includes
nursing homes and mid-tier and top-tier private hospitals
|
Pharmaceuticals
|
It includes
manufacturing, extraction, processing, purification and packaging of chemical
materials for use as medications for humans or animals
|
Diagonistics
|
It comprises
businesses and laboratories that offer analytical or diagnostic services,
including body fluid analysis
|
Medical
Equips & Supplies
|
It includes
establishments primarily manufacturing medical equipment and supplies, e.g.
surgical, dental, orthopaedic, ophthalmologic, laboratory instruments, etc
|
Medical
Insurance
|
It includes health
insurance and medical reimbursement facility, covering an individual’s
hospitalisation expenses incurred due to sickness
|
Telemedicine
|
Telemedicine has
enormous potential in meeting the challenges of healthcare delivery to rural
and remote areas besides several other applications in education, training
and management in health sector
|
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
Government
Hospitals
|
19
%
|
Top
Tiers
|
40
%
|
Mid
Tier
|
11
%
|
Nursing
Home
|
30
%
|
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.