80 / 116
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