The Major Investments in The Indian Healthcare Industry
Indian Healthcare - market size, Investments, Govt.of india initiatives and challenges:
If there has been a cheerful sector, impulsive employment sources and revenue genesis for India, it is healthcare sector and there is no doubt in it! With a high demand for healthcare services in India, rising the need for innovative healthcare, medical care facilities, medical tourism and state governments, Government of India concentrating for medical care evolutions, the overall sector has been repelling the job market, at the same time as others have recede and progressed freely. This week updates describe Indian healthcare - Market size, investments, Government Initiatives and challenges.
The overall Indian healthcare market is worth around US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 %. Healthcare delivery, which includes: Hospitals, Nursing homes, Diagnostics centers and pharmaceuticals, constitutes 65 % of the overall market. The Healthcare Information Technology (Health IT) market which is valued at US$ 1 billion currently is expected to grow 1.5 times by 2020.
Deloitte Touche Tohmatsu India has predicted that with increased digital adoption, the Indian healthcare market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 % to US$ 280 billion by 2020.
Over 80 % of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
There is a significant scope for raising medical care services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 % of the population, is set to emerge as a potential demand source.
India requires 600,000 to 700,000 additional beds over the next 5 to 6 years, indicative of an investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future. The average investment size by private equity funds in healthcare chains has already increased to US$ 20-30 million from US$ 5-15 million.
A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of alternative medicine and treatment to the people.
The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals estimated at 230,000. The Indian medical tourism 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 4 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.
Investments in the Sector:
The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.59 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments in the Indian healthcare industry are as follows:
Govt of India Initiatives:
India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's population will cost an estimated Rs 1.6 trillion (US$ 23.72 billion) over the next four years.
Some of the major initiatives taken by the Government of India to promote Indian healthcare industry are as follows:
Provisions made in the Union Budget 2016-17:
Challenges for Industry:
Year-by- year, the challenges confronting the Indian healthcare segment have persisted the same; the repeated healthcare problems facing India are still those coming up from malnutrition, infant mortality, sanitization, accebility to affordable medical care facilities and medicines.
At the same time, availability of qualified healthcare professionals - medical practitioners, nurses, paramedical and other support care professionals - is totally submissive. Most of these qualified professionals being sought out by countries in Europe, the Middle East. Also abidance to regulatory rules is still a reason for current challenges (both public and private hospitals). Furthermore, from the lack of an immediate reaction and remediation system, with things concerned to medical care negligence.
Today India, urgently need an efficient and effectual procedures to cover safe, affordable and quickly available medical care services to every patient.