Israel India | Business Guide | 2017

Israel-India > Business Guide > 2017 080 > ‏‏ Medtech & Pharma > Review ‏ I ndia’s healthcare sector is growing at a brisk pace due to its increasing coverage, services and increasing expenditure by public, corporate and private players. ‏ India has a large,well-trained pool of medical professionals and is cost competitive compared to Asia and Western countries. The cost of surgery in India is about one- tenth of that in the US or Western Europe. ‏ Market Size ‏ The overall Indian healthcaremarket is worth around $100 billion and is expected to grow to $ 280 billion by 2020.Healthcare delivery, which includes hospitals, nursing homes, diagnostics centers and pharmaceuticals, constitutes 65 per cent of the market while Healthcare Information Technology (IT ) market is worth $ 1 billion currently and is expected to grow 1.5 times by 2020. ‏ India requires 700,000 additional beds over the next six years at a cost of $ 25-30 billion. The Indianmedical tourism industry is pegged at $ 3 billion per annum,with tourist arrivals estimated at 230,000,and is expected to rise to $ 6 billion in 2018. India's Healthcare Sector has potential for collaborations ‏ Major Investments: ‏ • International Finance Corporation (IFC),the investment arm of World Bank,has invested around $ 67.5 million for a 29 per cent stake in Healthcaremajor Apollo Group’s subsidiary Apollo Health and Lifestyle Ltd for funding Apollo's expansion activities. ‏ • Japanese financial services firmOrix Corp.is in talks to buy a minority stake in Bengaluru- based fertility clinic chain Nova IVI Fertility from the company’s promoters and existing private equity investors for $ 37.5-45 million. ‏ • CDC, a UK-based development finance institution,invested $ 48 million in Narayana Hrudayalaya, a multi-speciality healthcare provider. With this investment, Narayana Health will expand affordable treatment in eastern, central and western India. ‏ • Pluss,a Gurgaon-based on-demandmedicine and healthcare products delivery service start- up,has raised $ 1million inpre-Series A funding from IDG Ventures, India, M & S Partners, Singapore and Powerhouse Ventures, US. ‏ Government Initiatives ‏ • In the Union Budget 2017-18, the overall health budget increased from $ 5.96 billion to $ 7.3 billion. ‏ • Government to set up two new All India Institutes of Medical Sciences (AIIMS) in Gujarat and Jharkhand. ‏ • Convert 1.5 lakh sub centres in Indian villages to health and wellness centres. ‏ • The Government of India plans to set up a single window approval system for innovation in medical research. ‏ • The Governments of India and Nagaland signed financing agreement and project agreement respectively with The World Bank, for the ‘Nagaland Health Project’ for $ 48 million, to improve health services. ‏ • A unique initiative for healthcare 'Sehat' (Social Endeavour for Health and Telemedicine) has been launched at a government-run Common Service Centre (CSC) to empower rural citizens by providing access to information, knowledge & skills. ‏ • The E-health initiative, which is a part of Digital India drive aims at providing effective and economical healthcare services to all citizens. ‏ Road Ahead ‏ India's competitive advantage also lies in the increased success rate of Indian companies in getting Abbreviated NewDrug Application (ANDA) approvals. India also offers vast opportunities in R&D as well as medical tourism. Source:IBEF,Department of Commerce & Industry, Govt. of India New Technology is Increasing Reach photo by: © Mattmcinnis, Dreamstime.com