How The Health Care Sector Is Spacing In India
Healthcare has become one of India’s largest sectors, both in terms of revenue and employment, comprising hospitals, clinical trials, medical services, and many more. The Indian healthcare sector is growing at a rapid rate due to its strengthening coverage, services and increasing expenditure by the public as well as private players.
Comprising of two components-public and private, the public healthcare system comprises limited secondary and tertiary care institutions, focusing on providing basic healthcare facilities to the people. The majority of secondary and tertiary care institutions are provided by the private sectors, targeting metros, tier 1 and 2 cities.
Well-trained medical professionals are the key players while contributing to India’s growing healthcare sector. Being cost competitive as well, the cost of surgery in India is about one-tenth of that in the US or Western Europe.
Experiencing a growth of 22-25% in medical tourism, the healthcare market is expected to increase to Rs 9 trillion by 2022. The market is expected to double its size from US$ 3 billion to US$ 6 billion by 2018. In fact, the medical tourist arrivals in India have increased to 1.07 million in January 2018 from 0.98 million in January 2017.
The Gross Domestic Product (GDP) rise has provided the healthcare services with a significant scope for enhancing in the upcoming time. Rural India accounting for over 70% of the population is all set to emerge as a potential demand source for the sector.
According to data released by the Department of Industrial Policy and Promotion, Foreign Direct Investment (FDI) worth US$ 5 billion was attracted by the hospitals and diagnostics centers between April 2000 and December 2017.
Recently India and Cuba signed a Memorandum of Understanding for increasing cooperation in health and medicine areas, stated by the Ministry of Health and Family Welfare, Government of India. Another investment was seen from Fortis Healthcare where they approved the de-merger of its hospital business with Manipal Hospital Enterprises, looking to invest Rs 3,900 crore.
The healthcare industry in India is one of the fastest growing sectors, which is expected to reach $275 billion in the upcoming 10 years. As the Indian consumers are becoming more health conscious, the country is becoming one of the leading destinations for high-end diagnostic services with huge capital investments.
Indian healthcare sector is much diversified, coming with full of opportunities in every segment which includes providers, payers, and medical technology. The rise in competition has opened the door for the sector to explore for the latest dynamics and trends which can have a positive impact on the business. Abbreviated New Drug Application (ANDA) also contributes heavily to India’s competitive advantage. Indian healthcare sector provides vast opportunities for investment in healthcare infrastructure in both urban and rural India, as R&D and medical tourism experiencing a rapid growth.