The Indian healthcare industry was estimated at USD 40 billion in 2010 is expected to reach USD 280 billion by 2020. Large investments by private sector players are likely to contribute significantly to the development of India’s hospital industry, which comprises around 80% of the total market, according to the report ‘Indian Hospital Services Market Outlook’ by consultancy RNCOS. As per estimates by ratings agency Fitch, the sector is poised to grow to USD 100 billion by the year 2015 and further to USD 275.6 billion by 2020.
The Indian healthcare sector comprises the sub-sectors of hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment. India presently has 0.5 million doctors, 0.9 million nurses and around 1.37 million beds, and has the highest number of medical and nursing colleges, at 303 and 3,904, respectively. In addition, the cost of medical treatment in India is one-tenth that compared to costs in the US and Europe.
The total FDI inflow into India in the hospitals and diagnostics sector for the period April 2000–April 2011 was USD 1 billion, according to the Department for Industrial Policy and Promotion (DIPP), which is part of the Ministry of Commerce and Industry and which is responsible for formulating the FDI policy in the country.Sector Outlook
The main areas where a number of market opportunities exist for both domestic and foreign players in the Indian healthcare domain include medical tourism, healthcare insurance, telemedicine and medical equipment.
The main drivers of growth in the healthcare sector are India’s booming population; growing middle class; increasing purchasing power; growth in infectious, chronic degenerative and lifestyle diseases; and rising awareness of personal healthcare.
Some of the advantages and opportunity areas for further growth of the sector are:
A low-cost destination: India provides best-in-class treatment, in some cases at less than one-tenth the cost incurred in the US and Europe.
Rising medical tourism: The main factors contributing to rising medical tourism in India are presence of a well-educated, English-speaking medical staff, as well as state-of-the art private hospitals and diagnostic facilities.
Growing economy: With a growing middle class, and rising health awareness and purchasing power, the healthcare insurance sector is poised for strong growth in coming years in India.
Telemedicine: Growth in the telemedicine sub-sector is taking place due to the need for specialist doctors in rural areas, as most of them live in urban or semi-urban centers of India. Rural areas, roughly with a population of 700 million, can be provided healthcare facilities through telemedicine, with remote diagnosis, and monitoring and treatment of patients via videoconferencing.
Healthcare infrastructure: Growth in Indian healthcare infrastructure is accompanied by strong demand for medical equipment such as x-ray machines, CT scanners and electrocardiographs, highlighting an opportunity for global players making quality products in this space.
Rising population: In 2011, India’s population was 1.21 billion and by 2030, India is expected to surpass China as the world’s most populous nation.