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HEALTHCARE SECTOR OVERVIEW

Statistics, news & updates: everything you need to know about the Healthcare Industry in India

Healthcare industry

Growth Drivers​

  • The Indian government now allows 100 per cent foreign direct investment (FDI) in the AYUSH sector projects for wellness and medical tourism and Greenfield and brownfield.

  • Medical tourism is growing at a rate of 22-25 per cent in India due to the relatively low cost of medical care. It contributes more than $2 billion to India’s healthcare market​.

  • Rising income, higher health knowledge, lifestyle illnesses, and more access to insurance are predicted to increase the Indian healthcare market to US$ 372 billion by 2022.​

Sub industries​

  • Pharmaceuticals​

  • Biotechnology & Life sciences​

  • Medical Devices​

  • Medical Electronics​

  • Diagnostic Equipment​

  • Surgical Devices​

  • Medical Accessories​

  • Hospital infrastructure​

Opportunities

  • The medical equipment industry is predicted to expand to US$ 11 billion by 2022, owing to an ageing population, more medical tourism, and lower medical service costs.

  • Many major firms, such as Apollo, VLCC, and Manipal Group, are opening wellness centers around India, focusing on traditional healthcare remedies.​

  • By 2022, the Indian government wants to expand healthcare spending to 3% of GDP.​

Challenges

  • For a long time, India has had a shortage of well-equipped medical institutes due to a lack of adequate infrastructure.​

  • India’s has a severe shortage of medically qualified personnel, including doctors, nurses, paramedics, and primary healthcare workers. ​

  • In India, health care is extremely expensive, especially for average incomed people. Plus, the cost of many life-saving medications has risen.​

  • The rise of health facilities has been very unbalanced. Rural, hilly, and isolated portions of the country are underserved, but health facilities in urban areas and towns are well developed.​

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Summary/Snapshot​

  • By 2022, India’s healthcare industry is expected to be worth US $372 billion.​

  • In terms of revenue and employment, healthcare has become one of India’s most important sectors. Because of its expanding coverage, service, and increased spending by both public and private participants, the business is rising at a fast pace.​

  • By 2022, India hopes to have one million skilled healthcare workers.​

  • By 2020, the healthcare business is expected to be worth US$ 193.83 billion, and by 2022, it will be worth US$ 372 billion.​

  • In June 2021, the government requested proposals for deploying drones to distribute COVID 19 vaccines and medications to remote and hard-to-reach areas to assure last-mile coverage in a few areas around the country.​
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  • There is a growing use of AI-based technologies. ​

  • India has historic and age-old traditional therapeutic practices, such as Ayurveda, Yoga, Unani, Siddha, and Homoeopathy.​

  • Medical tourism has increased demand for healthcare and medical devices.​

  • It’s become popular to offer a variety of healthcare and wellness services under one brand. It is convenient for patients and those seeking healthcare services. ​

  • By 2024, more than $200 billion will be spent on medical infrastructure. In 2021 157 medical institutions were being added across India. By 2025, the government intends to increase public health spending to 2.5 per cent of GDP.​

Healthcare

Key Investment Opportunities​

  • Healthtech startups​

  • Medical devices​

  • The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch US $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%​

  • India’s surgical robotics market is estimated to expand at a CAGR of 20% (2017-25) to hit the size of US $350 mn by 2025​

  • The hospital industry in India is forecast to increase to US$ 132.84 billion by FY22 from US$ 61.79 billion in FY17 at a CAGR of 16–17%. The Government of India is planning to increase public health spending to 2.5% of the country’s GDP by 2025.​

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COVID Impact​

How has COVID affected the industry?

  • Due to this outbreak, the healthcare sector was one of the worst affected.​

  • The industry has been witnessing the loss of business and this trend is expected to continue for the foreseeable future (at least 3-6 months), and the fact that the sector’s costs are predominantly (around 80 per cent) fixed, it is expected that there will be losses and severe impact on cash flows.​

  • The Indian Government had acted rapidly to allocate funds, resources, and manpower. It announced relief packages for the marginalized communities and covered costs. ​

  • Specific research centers in the country need to work to quickly mitigate any further damage. As of March 31, 2021, >6.30 crore (6,30,54,353) vaccine doses have been administered through 10,46,757 sessions across the country.​
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Outlook for the Healthcare industry post-Covid

  • Despite the Covid impact the hospital industry in India is forecast to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.8 billion) in FY17 at a CAGR of 16–17%.​

Key Players in India

National

  • Apollo Hospitals Enterprise Limited​

  • Thyrocare Technologies Limited​

  • Fortis Healthcare Limited​

  • Dr Lal PathLabs​

  • Medanta​

  • Max Hospitals​

  • AIIMS​

  • Kauvery Hospital​

  • Metropolis Healthcare​

     

International

  • Medtronic

  • UnitedHealth Group​

  • CVS Health​

  • McKesson Corporation​

  • Cardinal Health​

  • Johnson & Johnson​

  • Baxter International​

  • Philips​

     

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