Growth Drivers Of Indian Healthcare Industry
As India progresses, healthcare constitutes an important aspect of the country's development. With increased attention from the Government as well as international organizations like the WHO and other non-profit organizations, we see healthcare in India poised for growth. There are various aspects of healthcare services, including hospitals (both public and private), medical diagnostic services, medical equipment, private health insurance etc. Healthcare services in India are expected to improve and thereby the industry to continue on its growth path over the next few years. There’s a lot of potential in the sector, and avenues of growth by both public and private organizations. Overall, the healthcare industry (including retail pharmacy) is expected to reach USD 158 billion from USD 78.6 billion.
Medical Equipments and supplies
The medical equipments and supplies industry is in direct correlation with the rise of healthcare. As hospitals increase their scope of activities, the need for quality and cost competitive equipment and supplies in the country will increase. This is expected to encourage private players to service domestic demand. However, till regulatory guidance for the segment is not finalized and implemented, the growth of the industry is expected to be moderate, though beating some prior industry estimates. The Indian Medical Device industry is currently valued at around USD 3.5 billion and is expected to grow at a CAGR of 15% and touch the USD 5 billion mark in coming years.
Medical Tourism has seen enhanced interest from both the government and private sector. With increasing number of medical tourists all around the world, and a significant portion coming to India for treatments, the medical tourism industry is poised for growth. However, medical tourism is highly dependent upon the regulations at the home country of the tourist as well as the economic conditions. Considering the above, the medical tourism will still make an impact on the healthcare services market of India.
The hospitals business would continue to contribute to more than 70 percent of the healthcare sector, with the private and public sector combined contributing about USD 54.5 billion. While the government will step up its investment in the sector as planned, the private sector will foray into the hitherto largely ignored sector. With increasing confidence and understanding of the industry, investor interest will spur many private players to increase their scope of operations.
Diagnostic and Pathology Industry
The diagnostic and pathology industry boosted by catering to rising medical needs of the country and gaining momentum through growing acceptance of preventive cures will inch towards a more mature market setup over the years. The diagnostic and pathology services industry is expected to continue its consolidation. With increasing investor interest, this sector is expected to touch USD 2.5 billion.