An Overview of Healthcare Sector
Healthcare comprises hospitals, medical device, telemedicine, medical tourism, health insurance and medical equipment.
Overall Healthcare sector is expected to reach $360 billion by 2022 with CAGR of 16.96 percent y-o-y.
Indian government spending on healthcare is currently at 1.6 percentage of total GDP for the year 2020 and is expected to reach 2.5 percent by 2022.
Hospital industry is expected to cross $132 bn by 2022.
Medical Device market is expected to cross $24 bn by 2022.
100% FDI in healthcare sector in India is allowed under the automatic route for green-field projects and 100% FDI in medical devices for investments in brown-field projects is permitted under the government route. This will bring significant growth to healthcare sector in coming years.
Medical Tourism is expected to reach around $7 bn by 2022 from around $3 bn in 2020.
Medical Insurance is currently valued at approx. $7.2 bn and is expected to grow with CAGR of 18 percent y-o-y to $11.85 bn by 2022.
Telemedicine is expected to growth at 33.3 percent CAGR and reach $2.12 bn by 2022.
Government Initiatives
On September 23, 2018, Government of India launched Pradhan Mantri Jan Arogya Yojana (PMJAY), for mostly poor and lower middle income, through a health insurance scheme providing a cover of Rs. 500,000 (US$ 6,740) per family to over 100 million families every year(Approx. 800 million in rural and approx. 200 million in urban).
Indian Government has announced Rs 69,000 crore (US$ 9.87 billion) for the health sector in budget 2020-21.
Government’s spending on healthcare is expected to reach 2.5 percent of GDP by 2022.
The National Digital Health Mission is a digital health ecosystem under which every Indian citizen will now have unique health IDs, digitised health records with identifiers for doctors and health facilities. The Mission is expected to bring efficiency and transparency in healthcare services in the country.
Recent Trends
Reliance Retail Ventures Limited (RRVL) acquisition of Netmeds for Rs.650 crores ( Approx. $82 million).
PharmEasy and Medlife are going to have a merger soon.
Amazon Pharmacy is expected to be launched soon.
From about $1.2 billion in FY 20, the e-health market share is expected to quadruple in the coming year and further to touch $10 billion over the next two years.
Future of Healthcare
Few years back healthcare sector in India had less than a percentage share in overall GDP of the nation. Today, the government is emphasizing on investments and focusing on growth of the sector for citizens health and wellbeing.
Digitalization of healthcare sector would help government in understanding populations health records and focus on disease prevention through national health schemes. Hence, providing greater opportunities for digital startups as well as major players in the healthcare sector.
Recent pandemic has brought health awareness in the forefront. Therefore, giving a boost to healthcare sector.
Every business in healthcare (hospital, device, tourism, insurance, e-Health etc.) is poised to grow at a significant pace in upcoming years. This is the right time to venture in the Healthcare sector of India.
Disclaimer: Content is based on authors own research methods and assumptions. Audience are encouraged to research on their own for greater clarity about the selected topic.
Researcher of Future Trends
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