14 / 40
14
Israel-India Business Guide - MedTech, Pharma & Biotech
India’s Healthcare Sector
Developing rapidly and
it continues to expand
The huge need for overall Healthcare Infrastructure in India offers great
scope for collaborations
Sateesh Kulkarni
Key facts
• Healthcare sector in India is expected to grow to
USD 158.2 billion in 2017 from USD around 90 billion
currently. In 2008, the healthcare sector was worth a
mere USD 45 billion.
• India’s per capita healthcare expenditure has increased at
a CAGR of 10.3 per cent from USD 43.1 in 2008 to USD
57.9 in 2011. This is expected to rise to USD 88.7 by 2015.
• Growth drivers for the sector include rising incomes,
easier access to high-quality healthcare facilities and
greater awareness of personal health and hygiene.
• The country’s healthcare system is developing rapidly
and it continues to expand its coverage, services and
spending in both the public as well as private sectors.
• The private sector has emerged as a vibrant force in
India’s healthcare industry, lending it both national and
international repute.
• Private sector’s share in healthcare delivery is expected
to increase from 66 per cent in 2005 to 81 per cent by
2015. Its share in hospitals and hospital beds is estimated
to be 74 per cent and 40 per cent, respectively.
• Demand for high-quality and specialty healthcare
services will emerge from tier-II and tier-III cities. To
encourage the private sector to establish hospitals
in these cities, government has announced fiscal
concessions.
• Health insurance is gaining momentum in India and
gross healthcare insurance premium is expanding at a
CAGR of 39 per cent over 2006-10.
• Strong mobile technology infrastructure and launch of
4G is expected to drive mobile health initiatives in the
country. Mobile health industry in India is expected to
reach USD 0.6 billion by 2017. To standardize the quality
of service delivery, control cost, and enhance patient
engagement, healthcare providers are focusing on the
technological aspect of healthcare delivery.
• Digital health knowledge resources, electronic medical
record, mobile healthcare, hospital information system
are some of the technologies gaining acceptance
in the sector. The healthcare sector’s spending on IT
products and services is expected to cross USD 60
billion in 2014.
Current Size of the Healthcare Industry
• The break-up of the sector (2012 estimates) is shown
below:
• India’s healthcare spend is significantly low when
compared to the global, developed and other similar
emerging economies.
• The Indian healthcare spend is less than half the global
average in percentage terms when compared on a
“percent of GDP” basis.
As is noted from the comparison below, private sector
contribution to the healthcare sector at 75 % is amongst
the highest in the world in percentage terms. Public
spending, on the other hand, isamongst the lowest in the
world and is 23% points lower than the global average.
Challenges & Opportunities in Healthcare
Much of the growth in India’s healthcare sector will occur
in the country’s low-income markets, where population
growth has caused severe pressure on resources. This
resource shortage has resulted in a lack of quality health
care that is affordable and easily accessible. Insufficient
government efforts and failing infrastructure both bear
some of the blame for this shortfall. But while several
NGOs are active in these low-income markets, their focus
is primarily on sanitation, sexual health and prevention of
infectious diseases.
Without access to a broader array of quality health care
services, low-income communities are at an elevated risk.
As a result of their limited options, families often experience
high rates of mortality, lower earning potential linked to
treatable diseases, and overall reduced quality of life.
Major Opportunities
• There is huge need for overall healthcare infrastructure
with national bed density till lagging at 1.3/1000 (2010
figure).
• Dismal public infrastructure have made private hospitals
the only available option to access healthcare
• Education and Training Institutes for medical and
healthcare professionals still remains an unexplored
territory
MedTech