HEALTHCARE SECTOR OVERVIEW-2020
Statistics, news & updates: everything you need to know about the Healthcare Industry in India
- COVID-19 Impact
- Industry Clusters
- Growth Drivers
- Key Players
- Market Stats
- Biotechnology & Lifesciences
- Medical Devices
- Medical Electronics
- Diagnostic Equipment
- Surgical Devices
- Medical Accessories
- Hospital infrastructure
India has a history of alternative and natural medicines dating back to centuries ago. The healthcare sector in India today is diversified with doctors, hospitals, medical devices producers, medical equipment, health insurance, medical infrastructure and the growing industries of telemedicine and medical tourism. It has become one of India’s largest sectors both in terms of revenue and employment. Besides, increasing disease burden and growing healthcare awareness has led to the rise in the demand for medical products and services in the last years. Moreover, economic prosperity also drives the affordability of generic drugs in India. Further, Budget 2020 has increased allocation for the healthcare sector to Rs. 69,000 crores. The health outlay for this year saw an increase of around 19% over last year. Moreover, the Indian government has allowed 100% FDI under the automatic route for hospitals, and up to 100% FDI in the medical devices sector. This gives large opportunities for foreign companies. With a large pool of well-trained medical professionals, the industry is expected to employ about 7.4 million people by 2022.
With a population of 1.3 billion, the healthcare system in India is highly inadequate to provide quality infrastructure and manpower. As per The Global Burden of Disease study published in the medical journal Lancet in 2018, India is at 145th position among 195 countries in terms of healthcare access and quality index. India scored 41.2 viz a viz the global mean value of over 60. It is far lesser compared to some of the neighboring countries including Bhutan, Sri Lanka, Bangladesh and Myanmar.
One of the major reasons for India’s vulnerability is the lack of adequate resources. At 3.6% of GDP, the country’s spending on healthcare is among the lowest. As per The National Health Profile 2019 report, India’s public expenditure on health has been less than 1.3% of the GDP for many years. Besides, it also states that the country’s public investment is also very low. In fact, it is lower than in some of the low-income countries. Apart from the above, government spending on healthcare in India is poor. Owing to this, the out of pocket health expenditure for households is extraordinarily high accounting for 65% of all health expenditures.
In order to combat the impact of COVID-19 on the healthcare sector in India, the government has declared allocation of Rs. 15,000 crore to improve healthcare facilities.
Within the Medical Industry M+V is dealing with
- Bone Cements – 60% of customers served
- Dental – 50% of customers served
- Hospital Floor Cleaning and Hand Rubs – 70% of customers served
- Total No. of articles: 1,545
- Total No. of customers: 431
- Total Throughput: USD 15 Mill
- By the end of 2020, India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth.
- 100% FDI is allowed under the automatic route for Greenfield projects.
- The Government of India is planning to increase public health spending to 2.5% of the country’s GDP by 2025.
- The medical equipments and supplies industry is in direct correlation with the rise of healthcare.
- A rise in population, income and an increasing life expectancy are key growth drivers.
Key Players in India
- Apollo Hospitals Enterprise Limited
- Thyrocare Technologies Limited
- Fortis Healthcare Limited
- Dr Lal PathLabs
- Max Hospitals
- Kauvery Hospital
- Metropolis Healthcare
- UnitedHealth Group
- CVS Health
- McKesson Corporation
- Cardinal Health
- Johnson & Johnson
- Baxter International
- The Healthcare industry in India is projected to reach $ 372 billion by 2022.
- By 2020, the healthcare information technology market is expected to grow 1.5 times from the current $ 1 billion.
- By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $ 32 billion from $ 5 billion in 2012.
- By 2020, the Indian telemedicine market is expected to grow at a Compound Annual Growth Rate (CAGR) of 20% to reach $ 32 million from $ 15 million.
- The Indian Medical Tourism Market is expected to grow from its current size of $ 3 billion to $ 7 to 8 billion by 2020.