Healthcare sector has become one of the biggest revenue earners as well as employers in India. India’s population could surpass China’s around 2024, two years later than previously estimated, and is projected to touch ~1.5 billion in 2030, according to a UN forecast.
The healthcare sector comprises of doctors, hospital, medical care devices, health insurance, medical equipment and recently growing branches of medical tourism and telemedicine. As a result of an increase in the demand in this sector, both the private and the public sector have been increasing their investments, resulting in an increase in the service coverage area and also in the improvement in the quality of services.
India’s competitive advantage lies in its large pool of well-trained medical professionals. The cost factor adds to the list of benefits. The cost of surgery in India is about one-tenth of that in the USA or Western Europe, making India an ideal destination for medical tourism. India continues to face challenges due to lower healthcare to GDP ratio (4.5%), although this number has been continuously increasing. India has witnessed a steady increase in health insurance coverage. Between FY 2013 and FY 2016, insurance coverage witnessed a growth of about 40%.
- There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising in India.
- With the view to move towards universal healthcare, the government has announced the National Health Protection Scheme (NHPS), which is expected to cover over 500 million Indians and will be the largest of its kind in the world.
- The government has allocated USD 17.5 billion towards setting up 150,000 health and wellness centres and for the provision of free generic and preventive medicine
- Max Hospitals
- Fortis Healthcare
- Manipal Hospitals
- Portea Medical
- Lilavati Hospital
- The healthcare market is expected to increase threefold to ~USD 133.4 billion by 2022.
- The hospital and diagnostic centres space attracted Foreign Direct Investment worth USD 5 billion between April 2000 and December 2017
- Medical tourist arrivals in India increased to 1.1 million in January 2018 from 1 million in January 2017.
- There is an upward trend in non-communicable diseases portfolio in India accounting for 55.40% of diseases and health loss in India in 2016, which was estimated at ~30.5% in 1930.