1. Indian Health Care
A Sunshine Sector
Author: Dr.Vasudev Krishna
HR Head Milann HCG Group of Hospitals
2. BRIEF OVERVIEW
The Health Care Sector Comprises of
Medical services and managed care
Medical Insurance
Medical Devices & Equipment
Hospital Supplies
World Population at 7.2 billion – 9.6 billion by 2050
5. MARKET FORECAST
The hospital industry in India is forecasted to increase to Rs 8.6 trillion (US$ 132.84 billion) by FY22
from Rs 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16-17 per cent. The Government of India is
planning to increase public health spending to 2.5 per cent of the country's GDP by 2025.
From a market size of USD 12.6 billion in 2009, the Indian pharmaceutical market will grow to USD
55 billion by 2020, with the potential to reach USD 70 billion in an aggressive growth scenario.(
Second Largest by volume)
Massive Growth for the Biotechnology Market by 2024. According to a report from
Global Market Insights, the biotechnology market size was valued at over $330.3 billion in 2015, and
is expected more than double to $775.2 billion by 2024, at a compound annual growth rate of 9.9
percent.
Hospital equipments and supplies refer to the medical devices that are used in hospitals. Hospital
equipment and supplies market is growing at a significant rate due to increase in
the hospital number, rise in aging population and growing awareness about hospital acquired
infections (HAIs). The medical device market is projected to expand at a CAGR of 5.4% between 2019
and 2025. In 2018, the market accounted for a value of US$ 425.5 Bn and is likely to reach US$ 612.7
Bn by 2025.
6. The U.S. Bureau of Labor Statistics stated, “Healthcare industries and their associated occupations are
expected to account for a large share of new jobs projected through 2026.” There's no better time than today to
get involved in healthcare to gain the benefits of the industry.
7. Fastest Growing Sectors in India
The first reason for the expanding healthcare system is the increasing number of elderly people. As life
expectancy grows, there are many of citizens who are in need of continual medical care and oversight
8. Healthcare is slowly becoming the top priority of the Indian citizens to ensure their own well-being and a healthy
lifestyle. This has produced opportunities for digital healthcare startups that are active in a variety of healthcare
segments ( Over 100 successful digital healthcare startups – For Ex : Indian Telemedicine Market worth 100
Million USD in 2011 to 800 Million USD in 2022.
9. GOVERNMENT ROLE TOWARDS HEALTH CARE
Despite being one of the largest and fastest-growing in the world, expected to reach USD 133.44
billion by 2022 (IBEF report), India’s healthcare industry still needs to be strengthened manifold.
Budget 2020 delivers on the healthcare front can prove to be a catalyst for this at a national level. The
allocation of additional funds, new reforms and the introduction of more targeted initiatives have the
potential to make way for unprecedented developments in the sector.
India ranks 184 th out of 191 in terms of GDP% spend on healthcare, as per WHO. At 85$
(approximately INR 6044), the average healthcare spend per person in India is amongst the lowest
when compared to other countries. – Srilanka / China / Thailand invest 3x- 4x of the same.
Government spend on health care increased from 1.15% of GDP to 2.5% by 2025.