Working towards building a healthier India
The 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 the healthcare market in India.
- The Indian Healthcare market is expected to reach $190 bn by 2020; $372 Bn by 2022 at a CAGR of 39%
- The digital healthcare market in India was valued at INR 116.61 Bn in 2018, and is estimated to reach INR 485.43 Bn by 2024, expanding at a compound annual growth rate (CAGR) of ~27.41% during the 2019-2024 period
- 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 healthcare market is expected to grow at a CAGR of 13%
- The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%
- Over the next 10 years, National Digital Health Blueprint can unlock the incremental economic value of over $200 bn for the healthcare industry in India
- India has the world’s largest Health Insurance Scheme (Ayushman Bharat) supported by the government
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
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
- Industry Scenario
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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 healthcare sector 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 the 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 the organized sector is practically negligible in this case.
- 70,000 Ayushman Bharat centers, 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 bn in FY20
The Loan Guarantee Scheme for Covid Affected Sectors (LGSCAS) proposes a guarantee coverage for the funding provided by Scheduled Commercial Banks to eligible projects in the healthcare sector for setting up or modernizing/expanding healthcare facilities. Read details of the scheme here.
Robotic process automation (RPA)
RPA to improve the efficiency of the healthcare workforce; reducing costs and creating the value proposition
Shifting Disease Burden
Non-Communicable Diseases (NCDs) account for 50% of the disease burden and 60% of all deaths in India
Rise in Medical Tourism
Due to the relatively low cost of medical care in India, medical tourism is experiencing a 22-25% growth. It contributes over $2Bn to the healthcare market in India. Increased demand for healthcare and medical devices from rise in medical tourism
Policy Support & Incentives
100% FDI allowed in Greenfield & Brownfield projects, measures to correct unfavourable duty structure are being undertaken, single window clearance e-portal to improve EoDB
Atmanirbhar Bharat Abhiyaan - Self Reliant India
A special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India
Life expectancy is going to exceed 70 years by 2022, hence more healthcare services required
20% Indians covered; expected to rise with rising incomes, urbanization
Emergence of telemedicine
Along with these, the emergence of telemedicine, and government initiatives like e-health married with tax benefits and incentives are driving the healthcare market in India.
Over $200 bn to be spent on medical infrastructure by 2024
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Latest In Healthcare
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Invest India closely works with
Government Ministry/ Department
- Association of Diagnostics Manufacturers of India (ADMI)
- Association of Indian Medical Device Industry (AIMED)
- Confederation of Indian Industry (CII)
- Federation of Indian Chambers of Commerce & Industry
- Indian Medical Association (IMA)
- Medical Technology Association of India (MTaI)
- The Associated Chambers of Commerce and Industry of India
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