2. INTRODUCTION
Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical
tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a
brisk pace due to its strengthening coverage, services and increasing expenditure by public as well
private players.
Indian healthcare delivery system is categorised into two major components - public and private.
The Government, i.e. public healthcare system comprises limited secondary and tertiary care
institutions in key cities and focuses on providing basic healthcare facilities in the form of primary
healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary
and quaternary care institutions with a major concentration in metros, tier I and tier II cities.
India's competitive advantage lies in its large pool of well-trained medical professionals. India is
also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in
India is about one-tenth of that in the US or Western Europe.
3. MARKET SIZE
Deloitte Touche Tohmatsu India has predicted that with increased digital
adoption, the Indian healthcare market, which is worth around US$ 100 billion, will
likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020. The healthcare
market can increase three fold to US$ 372 billion by 2022.
India is experiencing 22-25 per cent growth in medical tourism and the industry is
expected to double its size from present (April 2017) US$ 3 billion to US$ 6 billion
by 2018. Medical tourist arrivals in India increased more than 50 per cent to
200,000 in 2016 from 130,000 in 2015.
4. I.T. MARKET VALUE IN I.H.S
The Healthcare Information Technology (IT) market is valued at US$ 1 billion
currently (April 2016) and is expected to grow 1.5 times by 2020. #
5. FOURTH LARGEST EMPLOYER
India is expected to rank amongst the top 3 healthcare markets in terms of
incremental growth by 2020
In FY17, Indian healthcare sector stood as the 4th largest employer as the sector
employed a total of 319,780 people
In May 2017, the Asian Research and Training Institute for Skill Transfer (ARTIST)
announced plans to create around 1 million skilled healthcare providers by 2022.
6. GROWTH PROSPECTS
Indian healthcare sector, one of the fastest growing industries, is expected to advance
at a CAGR of 22 per cent during 2016-2022 to reach US$ 372 billion by 2022. There is
immense scope for enhancing healthcare services penetration in India, thus
presenting ample opportunity for development of the healthcare industry
7. STRONG FUNDAMENTALS & COST
ADVANTAGE
Rising income levels, ageing population, growing health awareness and changing
attitude towards preventive healthcare is expected to boost healthcare services
demand in future
The low cost of medical services has resulted in a rise in the country’s medical
tourism, attracting patients from across the world. Moreover, India has emerged
as a hub for R&D activities for international players due to its relatively low cost of
clinical research
8. FAVOURALE INVESTMENT ENVIRONMENT
Conducive policies for encouraging FDI, tax benefits, favourable government
policies coupled with promising growth prospects have helped the industry attract
private equity, venture capitals and foreign players
9. STRONG GROWTH IN HEALTHCARE
EXPENDITURE OVER THE YEARS
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 2008-22, the market is expected to record a CAGR of 16.28 per cent
The total industry size is expected to touch US$ 160 billion by 2017 and US$ 372
billion by 2022.
10. STRONG GROWTH IN HEALTHCARE
EXPENDITURE OVER THE YEARS
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.
The hospital industry in India stood at Rs 4 trillion (US$ 61.79 billion) in 2017 and
is expected to increase at a Compound Annual Growth Rate (CAGR) of 16-17 per
cent to reach Rs 8.6 trillion (US$ 132.84 billion) by 2023.
11. PRIVATE SECTOR HAS A STRONG
PRESENCE IN INDIA’S HEALTHCARE
SECTOR
SHARES IN HEALTHCARE
IN 2005 IN 2015
GOVT HOSPITALS 34 19
TOP TIER 26 40
MID TIER 14 11
NURSING HOMES 26 30
12. PRIVATE SECTOR HAS A STRONG
PRESENCE IN INDIA’S HEALTHCARE
SECTOR
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
13. NOTABLE TRENDS IN THE INDIAN
HEALTHCARE SECTOR …
Corporate hospitals Expansion to tier-II and tier-III cities
Corporates like Fortis, Manipal etc entering in Management contracts with the
Hospitals
Increasing penetration of health insurance
Technology Initiatives: Digital Health Knowledge Resources, Electronic Medical
Record, Mobile Healthcare, Electronic Health Record, Hospital Information System,
PRACTO, Technology-enabled care, telemedicine and Hospital Management
Information Systems are some of the technologies gaining wide acceptance in the
sector
14. HEALTHCARE CONTRIBUTION TO INDIAN
ECONOMY
Healthcare contributed US$78.6 bn i.e., 4.2% of GDP in 2012.
Health Sector in India
The Indian healthcare industry comprises of hospitals, medical infrastructure,
medical devices, clinical trials, outsourcing, telemedicine, health insurance and
medical equipment.
Hospitals contribute about 71% of the entire sectoral revenues in 2012.
The sector is projected to grow ar CAGR 17% to $160 bn in 2017.
15. HEALTHCARE CONTRIBUTION TO INDIA
ECONOMY
FDI (April 2000 to August 2013)
Hospital and diagnostics centre sector = US$ 2.02 billion
Drugs & Pharmaceuticals’ = US$ 11.39 billion
Medical & Surgical appliances’ = US$ 717.61 million
16. Growth factors
Growing Demand: Rising incomes and affordability
Growing elderly population, changing disease patterns
Rise in medical tourism
Better awareness of wellness, preventive care and diagnosis
