OVERVIEW OF THE HEALTHCARE SECTOR

India's healthcare market may see a threefold jump in value terms to reach $ 372 bn by 2022. The healthcare industry in India stood as the fourth largest employer in 2017 as the sector employed a total of 319,780 people.

Key components of the healthcare market in India are hospitals (Government and Private), pharmaceuticals, diagnostics (imaging and pathology), medical equipment and supplies, medical insurance and telemedicine.

Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving healthcare market in India.

• By 2020, India is expected to rank amongst the top 3 healthcare markets in terms of incremental growth
• By 2020, the healthcare information technology market is expected to grow 1.5 times from current $ 1 bn
• By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $ 32 bn from $ 5 bn in 2012
• During 2015-20, the in-patient market is expected to grow at a CAGR of 13%

100% FDI is allowed under the automatic route for greenfield projects. For investments in brownfield projects, up to 100% FDI is permitted under the government route.

Investment Scenario

The Industry is expected to reach US$ 372 Billion by 2022

Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The industry 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 medical tourism industry in India is expected to double its value to become a $ 6 bn industry by 2018 from $ 3 bn in 2017. Medical tourist arrivals in India increased by over 50% to 200,000 in 2016 from 130,000 in 2015.
• The diagnostics industry in India is currently valued at $ 4 bn. The share of 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 organized sector is practically negligible in this case.