Healthcare has become one of India's largest sectors - both in terms of revenue and employment, the industry comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare industry is growing at a tremendous pace due to its strengthening coverage, services and increasing expenditure by public as well private players.
India's primary competitive advantage over its peers lies in its large pool of well-trained medical professionals. India's cost advantage compared to peers in Asia and Western countries is significant - cost of surgery in India is one-tenth of that in the US or Western Europe.
The Indian healthcare industry is projected to continue its rapid expansion, with an estimated market value of US$ 280 billion by 2020, on the back of increased population growth in India's low income communities. Large investments by private sector players are likely to contribute significantly to the development of India's hospital industry and the sector is poised to grow to US$ 100 billion by 2015 and further to US$ 280 billion by 2020.
Private sector's share in healthcare delivery is expected to increase from 66 per cent in 2005 to 81 per cent by 2015. Private sector's share in hospitals and hospital beds is estimated at 74 per cent and 40 per cent, respectively.
The diagnostic market is the fastest growing segment of India's healthcare industry, according to PricewaterhouseCoopers (PwC), with the segment forecasted to grow to US$ 17 billion by 2021.
Few of current foreign Investments
Hospital and diagnostic centers attracts foreign direct investment (FDI) worth US$ 2,494.98 million. Some of the major investments in the Indian healthcare industry are as follows:
Government Initiatives and Future Plans
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$ 25.2 billion) over the next four years.
India and Maldives signed three agreements. The pacts included a MoU on health cooperation.
The Union Cabinet has approved the proposal for setting up of National Cancer Institute (NCI) at a cost of Rs 2,035 crores (US$ 320.66 million). NCI will be set up in the Jhajjar campus (Haryana) of AIIMS, New Delhi. The project is estimated to be completed in 45 months.
Per capita income is expected to increase at a CAGR of 5.7 per cent over 2012-18. Changing demographics will also contribute to greater healthcare spending; this is likely to continue with the size of the elderly population set to rise from the current 96 million to about 168 million by 2026. However, growing health awareness and precautionary treatments coupled with improved diagnostics will result in decreasing hospitalization.
The medical tourism market in India is projected to hit US$ 3.9 billion mark this year having grown at a compounded annual growth rate (CAGR) of 27 per cent over the last three years, according to a joint report by consultancy firm KPMG and an industry body. The report says inflow of medical tourists is expected to cross 320 million by 2015.