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
The market size of AYUSH has grown by 17% in 2014-20 to reach $18.1 bn and the industry is projected to reach $23.3 bn in 2022
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.
The medical devices market has the potential to increase at a 37% CAGR and reach $50 bn by 2025
- Consumables & Disposables include needles and syringes, etc
- Diagnostic Imaging includes MRI, X-Ray, Ultrasounds, etc
- Dental Products includes dentures, braces, etc
- Orthopaedics & Prosthetics include knee implants, artificial joints
- Patient Aids include hearing aids and pacemakers, etc
Around 65% of the manufacturers in India are mostly domestic players operating in the consumables segment and catering to local consumption with limited exports. Large Multinational Corporations lead the high technology end of the Medical Devices market with extensive service networks.
There are 750–800 domestic Medical Devices manufacturers in India, with an average investment of $2.3–2.7 mn and an average turnover of $6.2-6.9 mn.
The manufacturing is developing in its scale and geography: there are six Medical devices manufacturing “clusters” in the country.
Clusters have “Medical Device Parks” developing around them: states have committed to set-up dedicated industrial parks where efficient domestic manufacturing at lower costs. The State Government of Himachal Pradesh, Tamil Nadu, Madhya Pradesh and Uttar Pradesh have been given “in-principle” approval to develop Medical Devices Parks & create a robust ecosystem for medical device manufacturing in the country.