Snapshot

Working towards building a healthier India

Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well as private players.

Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving healthcare market in India.

  • The Indian Healthtech industry was valued at ~$1.9bn in 2020. By 2023, it is expected to reach ~US$ 5B by 2023 at a CGAR of 39%
  • By 2020, India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth
  • By 2020, the healthcare information technology market is expected to grow 1.5 times from current $1 bn
  • By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $32 bn from $5 bn in 2012
  • During 2015-20, the in-patient market is expected to grow at a CAGR of 13%
  • By 2020, the Indian telemedicine market is expected to grow at a Compound Annual Growth Rate (CAGR) of 20% to reach $32 mn from $15 mn
  • Over the next 10 years, National Digital Health Blueprint can unlock incremental economic value of over $200 bn for the health sector.

100% FDI is allowed under the automatic route for greenfield projects. For investments in brownfield projects, up to 100% FDI is permitted under the government route.

For further details, please refer FDI Policy

  • mn

    eSanjeevani telemedicine consultations

  • %

    Increase in the total investments in healthtech startups.

  • %

    Share in hospital beds (Pvt.)

  • %

    Industry CAGR (2015-20)

‘NHP Scheme’ - World's largest government-funded healthcare programme

India plans to create 1 mn skilled healthcare providers by 2022

Healthcare has become one of India's largest sectors both in terms of revenue and employment

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Industry Scenario

Healthcare industry in India is projected to reach $372 bn by 2022

Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players.

  • The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $132 bn by 2023 from $ 61.8 bn in 2017; growing at a CAGR of 16-17%.
  • The Indian Medical Tourism market is expected to grow from its current size of $3 bn  to $7-8 bn by 2020
  • The diagnostics industry in India is currently valued at $4 bn. The share of organized sector is almost 25% in this segment (15% in labs and 10% in radiology).
  • The primary care industry is currently valued at $13 bn. The share of organized sector is practically negligible in this case.
  • 70,000 Ayushman Bharat centres, which aim at providing primary health care services to communities closer to their homes, are operational in India
  • Health insurance contributes 20% to the non-life insurance business, making it the 2nd largest portfolio. The gross direct premium income underwritten by health insurance grew 17.16% year-on-year to reach $6.87 Billion in FY20

GROWTH DRIVERS

  • Atmanirbhar Bharat Abhiyaan - Self Reliant India

    Special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India

  • Life Expectancy

    Life expectancy is going to exceed 70 years by 2022, hence more healthcare services required

  • Insurance Coverage

    20% Indians covered; expected to rise with rising incomes, urbanization

  • Emergence of telemedicine

    Along with these, emergence of telemedicine, and government initiatives like e-health married with tax benefits and incentives are driving healthcare market in India.

  • Medical Infrastructure

    Over $200 bn to be spent on medical infrastructure by 2024

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FAQs

Frequently
Asked Questions

What are the Centrally Sponsored Schemes under Ayurvedic, Yoga and Naturopathy, Unani, Siddha and Homeopathy?

Please find below the details of Centrally sponsored schemes under AYUSH:  

National AYUSH Mission (NAM) comprising of:  

(i) AYUSH Services  

(ii) AYUSH Educational Institution  

(iii) Quality Control of AYUSH Drugs

For more information, click here.

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Who are entitled for Central Government Health Scheme facilities?

The entitled parties include
 1) All Central Govt. employees and their dependant family members residing in CGHS covered areas.
 2) Central Govt. Pensioners and their eligible family members getting pension from Central Civil Estimates
 3) Sitting and Ex-Members of Parliament.
 4) Ex-Governors & Lieutenant Governors.
 5) Freedom Fighters.
 6) Ex-Vice Presidents.
 7) Sitting and Ex-Judges of Supreme Court & High Courts.

For more information, click here.

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What is CGHS?

For the last six decades Central Government Health Scheme is providing comprehensive medical care to the Central Government employees and pensioners enrolled under the scheme. In fact CGHS caters to the healthcare needs of eligible beneficiaries covering all four pillars of democratic set up in India namely Legislature, Judiciary, Executive and Press. CGHS is the model Health care facility provider for Central Government employees & Pensioners and is unique of its kind due to the large volume of beneficiary base, and open ended generous approach of providing health care.
CGHS provides health care through following systems of Medicine: 
1) Allopathic
2) Homoeopathic
3) Indian system of medicine
4) Ayurveda
5) Unani
5) Siddha 
6) Yoga

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What do you mean by Family Floater Policy?

Family Floater is one single policy that takes care of the hospitalization expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured. Quite often Family floater plans are better than buying separate individual policies. Family Floater plans takes care of all the medical expenses during sudden illness, surgeries and accidents.

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What are the different options for availing CGHS services to pensioners?

Pensioners Residing in CGHS covered areas:
a) They can get themselves registered in CGHS dispensary after making requisite contribution and can avail both OPD and IPD facilities.
b) Such Pensioners are not eligible for Fixed Medical Allowance in lieu of CGHS.
Pensioners residing in non-CGHS areas:
i) They can opt for availing Fixed Medical Allowance (FMA) at $15.38 per month by not paying any contribution.
ii) They can also avail benefits of CGHS (OPD and IPD) by registering themselves in the nearest CGHS city after making the required subscription. In such cases no Fixed Medical Allowance is given.
iii) They also have the option to availing FMA for OPD treatment and CGHS only for IPD treatments after making the required subscriptions as per CGHS guidelines. 
 

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