Healthcare sector India, Market opportunities & Investments
Healthcare has become one of India’s largest sectors- both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, tele-medicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. Overall Indian healthcare market today is worth GBP 75.28 billion and is expected to grow to GBP 210.80 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent.
- Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market
- The Healthcare Information Technology (IT) market which is valued at GBP 752.80 million currently is expected to grow 1.5 times by 2020, as per NASSCOM
- A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of alternative medicine and treatment to the people
- According to Deloitte Touche Tohmatsu India, increased digital adoption in India will trigger the healthcare market, which is worth GBP 75.28 billion to GBP 210.80 billion by 2020
Health Systems in India & Opportunities
- Diagnostic & Pathology Services – High cost differential in India allows for outsourcing of pathology and laboratory tests by foreign hospital chains
- Clinical Trials- India offers both a huge patient pool, favourable regulatory environment and cost advantage for conducting clinical trials.
- Health Insurance- Less than 25 percent of the Indian population is covered by any kind of health insurance, which provides significant opportunity to a new player in the health insurance market
- Telemedicine – Provides access to better quality healthcare in rural areas
- Equipment – Huge untapped market of medical equipment in the country
- The hospital and diagnostic centres attracted Foreign Direct Investment (FDI) worth GBP 2.7 billion between April 2000 and March 2016, according to DIPP (Department of Industrial Policy and Promotion)
- Aster DM Healthcare, a Dubai-based healthcare conglomerate, has acquired 25 per cent stake in Ramesh Hospitals, a multispecialty chain headquartered in Vijayawada, in a deal worth GBP 12.27 million
- San Francisco based Fitbit Inc., a fitness-tracking device maker, has launched its fitness wristbands across 300 towns in India and expects the country to be among its top five markets in next two years
- Practo Technologies Pvt. Ltd, India’s largest online doctor discovery company, has acquired hospital information management solution provider Insta Health Solutions for GBP 9.03 million which will help Practo get access to more than 500 hospitals across 15 countries
- IHH Healthcare Berhad acquired a controlling 51 per cent equity stake in Hyderabad-based Continental Hospitals Limited for about approximately GBP 34.17 million
- Qatar-based Non-resident Indian’s (NRI) including medical professionals and businessmen, are planning to set up a huge world-class healthcare project in Kochi worth GBP 145.05 million
- Malaysia-based IHH Healthcare Berhad has agreed to buy 73.4 per cent stake in Global Hospitals Group, India’s fourth-largest healthcare network, for GBP 145.15 million
- Temasek Holdings Pte Limited acquired the entire 17.74 per cent stake of Punj Lloyd Limited in Global Health Private Limited, which owns and operates the Medanta Super Specialty Hospital in Gurgaon(India)
- CDC, a UK based development finance institution, invested GBP 36.13 million in Narayana Hrudayalaya, a multi-speciality healthcare provider. With this investment, Narayana Health will expand affordable treatment in eastern, central and western India.
- Future perspective of the industry seems to be immensely bright in terms of the expected surge in global demand and upsurge in investments
- Several trends such as globalization, continuous investments in research and development, newer techniques of drug development and discovery, product proliferation, mergers and acquisitions are the key drivers of this industry
- Advancement in the field of IT allow critical medical data to be processed and transferred quickly over larger distances, thus saving time of both the patients and the physician, hence enhancing the speed
- Health insurance and Medical Tourism are the other significant trends governing medical and healthcare industry
- In the backdrop of a growing and affluent middle class increasing corporatization of Private Healthcare is an emerging trend that has been pushing the growth of the industry
In this edition of our newsletter, we have given the overview of the Indian market, recent investments made in the sector, opportunities and future prospects and government measures to ease of doing business in India.
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