Indian Healthcare Industry
Healthcare has become one of India’s largest sectors – both in terms of revenue and employment. The overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centers, and pharmaceuticals, constitutes 65 per cent of the overall market. Rising income level, greater health awareness, increased precedence of lifestyle diseases and improved access to insurance would be the key contributors to growth.
The telemedicine market in India is valued at US$ 7.5 million currently and is expected to grow at a CAGR of 20 per cent to reach US$ 18.7 million by 2017. Further, presence of world-class hospitals and skilled medical professionals has strengthened India’s position as a preferred destination for medical tourism. The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals estimated at 230,000. The industry is expected to reach US$ 6 billion by 2018, with the number of people arriving in the country for medical treatment set to double over the next four years. With greater number of hospitals getting accredited and receiving recognition, and greater awareness on the need to develop their quality to meet international standards, Kerala aims to become India’s healthcare hub in five years.
There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source.
Major exports of Medical products in the year 2015-2016 were Electro-medical apparatus (electro-cardiographs, infra-red ray app); Optical fibre, cables; sheets&plate of polarising mat; Automatic regulating or controlling instruments and apparatus; Apparatus based on the use of X-rays/of alpha, beta/gamma radiations.
Highlights of Indian Healthcare Industry
- The Indian healthcare market, which is worth US$ 100 billion, will likely to grow at a CAGR of 23 per cent to US$ 280 billion by 2020.
- Indian Healthcare industry contributes ~4% to the Gross Domestic Product (GDP)
- Per capita healthcare expenditure is estimated at a CAGR of 5 per cent during FY 2008–15 to US$ 68.6 billion by 2015.
- The total industry size is expected to touch US$ 160 billion by 2017 and US$ 280 billion by 2020.
- With the healthcare industry seeing a robust growth trajectory, workforce in the sector is expected to be at 7.4 million in 2022