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
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
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
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
Atmanirbhar Bharat Abhiyaan - Self Reliant India
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, emergence of telemedicine, and government initiatives like e-health married with tax benefits and incentives are driving healthcare market in India.
Over $200 bn to be spent on medical infrastructure by 2024