This document is a report on the healthcare industry in India prepared by a student for a course assignment. It provides an introduction to the healthcare industry in India, outlines key drivers of growth, discusses the industry's contribution to the economy, analyzes market size, investment, government initiatives, major players, and performs a PESTEL analysis. It also examines Porter's five forces model, future growth opportunities, threats, trends, and the impacts of the national budget on the industry. The report was prepared to fulfill an assignment requirement and provide an overview of the current state of the healthcare industry in India.

1. INDUSTRY STUDY REPORT ON
HEALTH CARE INDUSTRY
PROGRESS REPORT
PREPARED BY
PREM BRAJWASI
(BBA SEMESTER-III)
ENROLLMENT NUMBER
20FOMBA11014
FOR THE SUBMISSION OF
SEE
GUIDED BY
PROF. ALLPESH NASIT
SUBMITTED TO FACULTY OF MANAGEMENT
RK UNIVERSITY RAJKOT
OCTOBER,2021

2. PREFACE
This report is prepared to fulfil the requirement of the BBA program of R.K.
University on research report of Healthcare. The objective of the program was to
familiarize the student with the implementation of the knowledge she/he earned
on the campus. The practical knowledge is far different from the bookish
knowledge that a student achieves in an institution.
In the further section mentioned about information, product mix of the company
and recent problems faced by the company due to pandemic. Healthcare industry.
The present is not free of limitations. There might have problems regarding lack
of limitation in some aspects and also some minor mistakes such as typing
mistakes. These few drawbacks have occurred merely due to time limitation and
lack of secondary sources of information. Though I have tried my best to keep
the report free from errors, I apologize if any error is found which was not
deliberately made. If the report can help any person in providing information, I
will feel that the purpose of the report has been fulfilled.

3. ACKNOWLEDGEMENT
First and foremost, I would like to thank our Teacher prof. Allpesh nasit who
guided us in doing these projects. He provided us with invaluable advice and
helped us in difficult periods. His motivation and help contributed tremendously
to the successful completion of the project.
Besides, we would like to thank all the teachers who helped us by giving us advice
and providing the equipment which we needed.
Also I would like to thank my friends for their support. Without that support we
couldn’t have succeeded in completing this project.
At last but not in least, we would like to thank everyone who helped and
motivated us to work on this project.

4. TABLE OF CONTENT
SR NO PARTICULARS PAGE NO.
1 INTRODUCTION 1
2 GROWTH DRIVES 2
3 HEALTHCARE
INDUSTRY
CONTRIBUTION IN
INDIAN ECONOMY
3
4 MARKET SIZE 4
5 INVESTMENT 5
6 GOVERNMENT
INITIATIVES
6
7 MAJOR PLAYERS 7
8 PESTEL ANALYSIS 8
9 MICHAEL PORTERS 5
FORCE MODEL
10
10 FUTURE GROWTH 12
11 THREATS 13
12 TRENDS 14
13 IMPACTS OF BUDGET 16
14 CONCLUSION 17
15 REFERENCES 18

5. 1
INTRODUCTION
The Healthcare industry in India is made up of hospitals, medical apparatus, clinical
trials, outsourcing, telemedicine, medical tourism, health insurance, and medical
equipment. The industry is rising at a remarkable pace owing to its reinforced
coverage, services and additional expenditure by the public as well as private
investors. 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 major concentration in metros and tier I and
tier II cities.

6. 2
GROWTH DRIVES
▪ Growing incidence of lifestyle disease
▪ Rising demand for affordable healthcare delivery systems due to the
increasing healthcare cost.
▪ Technological advancements.
▪ Emergence of telemedicine.
▪ Rapid health insurance penetration and government initiatives like e
health.
▪ Tax benefits and incentives.

7. 3
HEALTHCARE INDUSTRY CONTRIBUTION IN
INDIAN ECONOMY
▪ India’s public expenditure on healthcare stood at 1.2% as a percentage of the
GDP.
▪ In the Union Budget 2021, investment in health infrastructure expanded
2.37x, or 137% YoY; the total health sector allocation for FY22 stood at Rs.
223,846 crore (US$ 30.70 billion).
▪ The government announced Rs. 64,180 crore (US$ 8.80 billion) outlay for the
healthcare sector over six years in the Union Budget 2021-22 to strengthen
the existing ‘National Health Mission’ by developing capacities of primary,
secondary and tertiary care, healthcare systems and institutions for detection
and cure of new & emerging diseases.
▪ In Union Budget 2021-22, the government announced its plans to launch
‘Mission Poshan 2.0’ to merge ‘Supplementary Nutrition Programme’ with
‘Poshan Abhiyan’ (Nutrition Mission) in order to improve nutritional
outcomes across 112 aspirational districts.
▪ The Government of India approved continuation of ‘National Health Mission’
with a budget of Rs. 37,130 crore (US$ 5.10 billion) under the Union Budget
2021-22.
▪ In the Union Budget 2021, the Ministry of AYUSH was allocated Rs. 2,970
crore (US$ 407.84 million), up from Rs. 2,122 crore (US$ 291.39 million).

8. 4
MARKET SIZE
The healthcare market can increase three-fold to Rs. 8.6 trillion
(US$ 133.44 billion) by 2022. In Budget 2021, India’s public expenditure on
healthcare stood at 1.2% as a percentage of the GDP.A growing middle-class,
coupled with rising burden of new diseases, are boosting the demand for health
insurance coverage. With increasing demand for affordable and
quality healthcare, penetration of health insurance is poised to expand in the coming
years.
In FY21, gross written premiums in the health segment grew at 13.7% to Rs.
58,584.36 crore (US$ 8.00 billion). The health segment has a 29.5% share in the
total gross written premiums earned in the country.

9. 5
INVESTMENT
In the Union Budget 2021, investment in health infrastructure expanded 2.37x, or
137% YoY; the total health sector allocation for FY22 stood at Rs. 223,846 crore
(US$ 30.70 billion).
According to Invest India's Investment Grid, there are nearly 600 investment
opportunities worth USD 32 Billion (INR 2.3 Lakh Crore) in the country's
hospital/medical infrastructure sub-sector.

10. 6
GOVERNMENT INITIATIVES TO BOOST THE
INDUSTRY
▪ AIIMS (All India Institute of Medical Science), New Delhi
▪ PGIMER, Chandigarh
▪ Christian Medical College, Vellore
▪ Apollo Hospital, Chennai
▪ Vedanta, The Mendicity, Gurgaon
▪ Fortis Hospital, Kolkata
▪ Lilavati Hospital, Mumbai
▪ Jawaharlal Institute of Postgraduate Medical Education and Research,
Puducherry
▪ Sankara Netralaya, Chennai

11. 7
MAJOR PLAYERS
Apollo Hospitals Enterprise Limited is a healthcare provider. It is engaged in
offering healthcare services and operating standalone pharmacies. The company's
segments include healthcare, pharmacy, and others. The healthcare segment consists
of hospitals, hospital-based pharmacies, and projects and consultancy services.
Thyrocare Technologies Limited is an India-based healthcare service provider. The
company operates with a centralized processing laboratory (CPL) in Mumbai, India
for esoteric tests and regional processing laboratory in metro cities of India and other
parts of Asia. The company offers technologies like Chemiluminescence
Immunoassay (CLIA) ETC.
Fortis Healthcare Limited is an integrated healthcare delivery service provider. The
company is engaged in establishing, maintaining, operating, running, managing or
administering hospitals, medicare, healthcare, diagnostic, health aids and research
centers. The company operates through the Clinical Establishments Division and the
Medical Service...

12. 8
PESTEL ANALYSIS
▪ Political Factors
Changing tax legislation, consumer protection and employment regulations, and
insurance mandates are all elements in the political sphere that could have an impact
on healthcare. For example, a change in tax policies may call for a strategy
adjustment that either takes advantage of increased government spending for
healthcare or makes allowances for reduced government subsidies. Or, changes in
employment law, like the legislation that impacted employee overtime
requirements, could mean major adjustments in staffing and overtime needs.
▪ Economic Factors
Unemployment, inflation, and interest rates are examples of economic issues that
both directly and indirectly influence the financial performance of healthcare
organizations. These changing conditions can have an impact on public spending
policies and your purchasing power. For example, if you manufacture healthcare
equipment, a high rate of unemployment will mean fewer people are able to purchase
your products. Or, more people losing jobs means a greater loss of health insurance
coverage, which will affect the types of health services people seek out.

13. 9
▪ Sociocultural Factors
A PESTLE analysis for healthcare should also identify changes in demographics,
values, and beliefs of your various consumer groups. A hospital, for example, should
be knowledgeable about the community it serves to avoid violating widespread
values or norms. Factors like these should also play into your organization’s
marketing strategy. Using content that shows you’re aligned with a specific
sociocultural set of beliefs/values will boost the effectiveness of your marketing and
impact your performance.
▪ Technological Factors
Technological advancements specific to hospitals and healthcare manufacturers
could have a varying range of effects on your overall performance. The equipment
being manufactured and used is continually changing, as is the development of new
treatments. And new technology outside the healthcare field could also affect how
an organization communicates with their consumers, as in app development or
digital marketing. Planning ahead to take advantage of those advancements could
mean good opportunities for growth.
▪ Legal Factors
Failure to follow new laws and legal procedures that govern healthcare could lead
to immediate failure of your strategy. The legal implications of pending lawsuits,
HIPAA compliance, potential hospital mergers and more should all be taken into
consideration as part of your overall strategy.
▪ Environmental Factors
Environmental sustainability practices have both environmental and financial
benefits for healthcare organizations. Many hospitals are now seeking LEED
certification for environmentally-friendly building design; waste disposal programs
are also coming under scrutiny. Leadership in the areas of green environment
practices also illustrates corporate social responsibility (CSR)—which should be a
key part of any strategic plan.

14. 10
Michael Porter’s Five Forces Model
▪ Rivalry Among the Competitors
Intense rivalry is faced by the health care industry about market capitalization.
Healthcare companies were found to lead in terms of margin over other companies
from other health care companies in the industry, showing intense competition.
This industry is also better able gain benefit because of high switching cost. An
individual signing the policy for health care is able to use only one provider thus
they are not able to switch to another company.
▪ The bargaining Power of Buyers
In the Health care sector in, buyers hold a weak bargaining power or in other words,
customers hold a weaker position. To avail the health care service, a price has to be
paid for it. Customers are more interested in taking the health insurance and pay the
price for it as they may not be able to afford any life saving operation if injured.
According to Porter, value generation is more important than the price. Thus a high
quality care with lesser price should be considered so that this industry could gain

15. 11
margins through a value based competition. Hence, the ultimate goal of this industry
is to create value enough and establish an economically stable environment.
▪ The Bargaining Power of Suppliers
Suppliers hold a high bargaining power as this sector is totally dependent on its
services provided. The suppliers are lesser in number than the buyers. In most cases
every person would need to consult a healthcare in lifetime, this means each one
would also be a customer at some point in the industry. Despite the increase in
healthcare cost, demand does not stop because people and also the government is
more concerned about people’s health and quality of life.
▪ Substitute of Existing Products
Customers prefer cheaper prescription medicines. They would always opt to go
where they are able to find cheaper prices. Store like Wal-Mart or Target or other
small in-house medical stores provide cheaper drugs however substitutes for
complete health coverage plan lacks and the situation is less alarming for future
prospects as well. Customers today also like to adapt the “do it yourself strategy”
and thus in the digital world they want to adopt such trends where they remain
connected through the technology and keep most of the medical equipments at home.
▪ Threat Towards the Entry of New Entrants
As there are very few companies that dominate in this sector hence the threat of entry
of new companies in the market is comparatively very low. A smaller firm
performing better would be brought down by the larger and more dominating firm
despite its high growth. The situation expected to remain the same because of
expensive switching cost and the insure.

16. 12
FUTURE GROWTH OPPORTUNITIES OF
HEALTHCARE INDUSTRIES
By 2022, the healthcare industry in India has aimed to reach $372 billion. Presently,
the Indian healthcare industry is growing at a tremendous pace. The factors
responsible for such a fast growth are “Services, Coverage and Increasing
Expenditure by Public and Private Investors.”
The expected growth of Indian medical tourism is expected to reach $7-8 billion this
year (2020). The healthcare sector has also seen a rise in Ayushman Bharat centres.
There are presently more than 50,000 of these centres which provide primary
healthcare services across India.

17. 13
THREATS TO HEALTHCARE INDUSTRIES
▪ Compliance & protection of intellectual property
An issue that’s somewhat unique to the healthcare industry is that hospitals, insurers,
and others take compliance quite literally, focusing mostly on the processes and
missing out on the big picture of what compliance regulations are trying to
accomplish. Such a rationale among the healthcare players has created a false sense
of security, making them more vulnerable than ever before. The ensuing costs for
such complacency can be high; especially, given the investment of time, effort and
money that is required long term. Information risk management is more than just
compliance. The healthcare sector needs to look at addressing data security and IP
concerns as a proactive investment, and not simply focusing on it as a cost for
ensuring compliance.
▪ Data security challenges in healthcare environments
In India, the healthcare sector is growing at an unprecedented rate, confounding
analysts and investors alike. According to the Indian Pharmaceutical Congress, the
industry is growing at 15.92 per cent per annum, making India the sixth largest
market globally. This is all the more a reason to protect patient files, prescription
records, diagnostic data, insurance records and billing details.
▪ Handling internal & external threats
World over the healthcare sector has been smarting under attacks from insiders—
rather than external hackers—who manipulate the inherent flaws in the IT
environment. Closer home, culture, politics and budget continue to undermine
security in the healthcare sector in India.

18. 14
TRENDS
▪ From communicable to lifestyle diseases
With increasing urbanisation and problems related to modern-day living in urban
settings, currently, about 50% of spending on in-patient beds Is for lifestyle diseases
– this has increased the demand for specialised care. In India, lifestyle diseases have
replaced traditional health Problems. Most lifestyle diseases are caused by high
cholesterol, high blood pressure, obesity, poor diet and alcohol.
▪ Expansion to tier ii and tier iii cities
Vaatsalya Healthcare is one of the first hospital chains to start focus on tier II and
tier III for expansion.To encourage the private sector to establish hospitals in these
cities, the Government has relaxed taxes on these hospitals for the first five years.
▪ Emergence of telemedicine
Telemedicine is a fast-emerging sector in India. Virtual care—constituting
teleconsult, telepathology, teleradiology and epharmacy—is experiencing a stimulus
in India. Major hospitals (Apollo, AIIMS, Narayana Hrudayalaya) have adopted
telemedicine services and entered into a number of PPPs.
▪ Rising adoption of artificial intelligence (AI)
Rising adoption of AI-based applications has enabled people to talk directly to
doctors, physician, and expertise for the best treatment. • It is also capable of solving
problems of patients, doctors, and hospitals as well as the overall healthcare industry.
• In April 2021, Tata Trusts initiative, India Health Fund (IHF) announced the
onboarding of two AI start-ups—TrakItNow Technologies, an IoT and AI-based
solution that is in development stage with immense potential to impact mosquito
borne diseases, and Stellar Diagnostics (SDIL).

19. 15
▪ Introduction of vaccine delivery digital platform
In December 2020, a new COVID-19 vaccine delivery digital platform called 'CO-
WIN' is being prepared to deliver vaccines. As a beneficiary management tool with
different modules, this user-friendly mobile app for recording vaccine data, is in the
process of establishing the ‘Healthcare Workers’ database, which is in an advanced
stage across all states/UTs. • In January 2021, Union Health Secretary, Mr. Bhushan
stated that the Government of India will proactively help other countries who may
want to use CO-WIN, India’s indigenous vaccination management system.

20. 16
IMPACTS OF BUDGET ON HEALTHCARE INDUSTRY
India is among the countries with the lowest public healthcare budget in the world.
The public healthcare system in the country, including that of the state and central
government is close to 1.3% of GDP compared with the OECD countries’ average
of 7.6% and other BRICS BRICS countries’ average of 3.6%.
While the total per capita government spending on healthcare has nearly doubled
from Rs 1,008 per person in FY15 to Rs 1,944 in FY20, which comes to 15% CAGR,
it is still considered low.

21. 17
CONCLUSION
Indian healthcare sector had been growing at a steady speed, however, it is likely to
grow at a higher rate in the post pandemic era. Although, the government has
invested and encouraged the healthcare sector on multiple occasions, it still seems
lesser than that of other countries. Indian government’s Ayushman scheme has
helped in providing healthcare facilities to the under-privileged section of the society
for free. The needy are now being treated in the same facility under this scheme.
More healthcare schemes like these will further expand the reach of healthcare
providers to the smallest of towns.

22. 18
REFERENCES
▪ https://www.ibef.org/industry/healthcare-
india/showcase
▪ https://m.timesofindia.com/business/india-
business/healthcare-sector-hits-misses-from-budget-
2021/amp_articleshow/80670474.cms