The slides cover the topic of economic effects on the Healthcare sector. The situation of India's Healthcare sector after Covid-19.

1. Macro-Economic Analysis of
Health Care Sector
Made by - Group 8
Utsav Mahajan - 20DM233
Vibhor Kaul - 20DM241
Wilson V Shaji - 20DM249
Anwesh Raajan - 20DM264
Rajat Rastogi - 20DM283
Shriyansh Saboo - 20DM286

2. 2022 - US$ 372
billion
2020 - US$ 280
billion
HEALTHCARESECTOR
16.28%
₹1,008 in FY15
₹1,944 in FY20
Per Capita
Government
Spending
CAGR
Market
Size
Government
Expenditure
in terms of
GDP
2020 – 1.29%
2025 – 2.5%
HEALTHCARE SECTOR IN INDIA
Medical
Tourism
Growth - 18% y-o-y
2020 - US$ 5 – 6
billion.
Hospital
Sector
Health
Insurance
Premium
2019 - US$
6.51 billion
2020 - US$
7.39 billion
2023 - $132
billion
CAGR – 16-17%

3. Fiscal Policy Affecting Healthcare Sector
1.29% of GDP in
2020
(Public + out of the
pocket)
stands at 3.6% of GDP in
2020
(As per OECD)
100% FDI allowed in
construction of hospital
and AYUSH Sector under
automatic route.
Government Expenditure Total Expenditure
FDI
• Medical supplies – Nil,
5%, 12%, 18%
• Medical services – Nil
• Health Insurance
premium – 18%
GST
Rs 69,000 crore for
the healthcare sector in
the 2020-21 Union Budget
Budget Allocation

5. Impact on GDP
● The Government of India is planning to increase
public health spending to 2.5 percent of the
country's GDP by 2025.
● The healthcare market can increase threefold
to Rs 8.6 trillion (US$ 133.44 billion) by 2022.
● Indian medical tourism market is growing at
18% y-o-y and is expected to reach US$ 9
billion by 2020.
● Health insurance is gaining momentum in
India. Gross direct premium income
underwritten by health insurance grew
17.16% y-o-y to Rs 51,637.84 crore (US$ 7.39
billion) in FY20.

6. Employment Scenario
╺ Healthcare sector expected to generate 40
million jobs in India by 2020.
╺ According to India Brand Equity Foundation
(IBEF), India expected to rank amongst top
three healthcare markets.
╺ India ranks 145th among 195 countries in the
quality of healthcare.

7. ╺ Population growth & ageing
╺ Rising health insurance premiums
╺ New drugs, technologies are
expensive
╺ Increase in Chronic illness.
Reasons for Rising Healthcare Costs

8. Impact Of Inflation
● The average retail healthcare inflation for india was 7.14% for the year 2018-19 having a steep rise
from 4.39% in the previous fiscal year.
● In January 2019, healthcare’s contribution to overall retail inflation exceeded that of even education
and housing.
● Rural areas account for most in overall inflation, as rural CPI is 14% compared to 8% to urban CPI.
● Among components of health, hospital and nursing charges was the highest in retail inflation which is
9.4% in 2018-19.
● The medicine component has the highest weight in health inflation, accounting for 68 per
cent of the health inflation index.

9. Pradhan Mantri Matru Vandana Yojana
(PMMVY)
Rs 2500 crores
Pradhan Mantri Swasthya Suraksha Yojana
(PMSSY)
Rs 6,020 crores
National AIDS Control Programme
(NACP)
Rs 2,900 crores
National Health Mission
(NHM)
Rs 33,400 crores
Ayushman Bharat-
Pradhan Mantri Jan Arogya Yojana
(AB PMJAY)
Rs 6400 crores
Rashtriya Swasthya Bima Yojana
(RSBY)
Rs 29 crores
Government Policies and Initiatives
Pradhan Mantri Surakshit Matritva Abhiyan
(PMSMA)
Rs 831 crores

10. Impact of Covid on Healthcare
Sector
● Disruptions in the supply side decreased
the efficiency of operations in the
pharmaceutical industry cutting their
revenue by 15-20%.
● The pandemic gave big clout to cash flows
of Indian companies importing medical
devices, affecting their profitability, putting
an upward pressure on prices of medical
devices in the short term.
Efforts made by Government
● The Finance Minister announced medical
insurance cover of Rs 50 lakh per
healthcare worker.
● The Government sanctioned Rs 15,000
crore to fund dedicated treatment facilities
for COVID-19.
● Rolling out of Arogya Setu app for self-
assessment and contact tracing.
COVID-19 Effects

11. Healthcare in India: The Way
Forward
Short Term Measures
╺ Reducing the chances of hospital acquired infections
╺ Ensuring supply of affordable medicines
╺ Use of technology
Long Term Measures
╺ Upgradation of Public Health Services
╺ Improving robustness of Pharmaceutical Supply Chain
╺ Boosting private sector investment