Emerging innovations, government support and increased awareness, especially digital health has substantially improved the Indian healthcare ecosystem driving growth
By FY2022, revenue generated by the industry is anticipated to reach $372 billion growing at a compound annual growth rate (CAGR) of 16-17 per cent, from $160 billion in FY2017, catalysed by favourable government policies and overall business environment
The Indian healthcare industry is set for exponential growth, along with a substantial improvement in healthcare infrastructure and workforce. By FY2022 revenue generated by the industry is anticipated to reach US $372 billion growing at a compound annual growth rate (CAGR) of 16-17%, from US $160 billion in FY2017, catalysed by favorable government policies and overall business environment. Over the years, the government has worked to position healthcare as one of the largest industries, both in terms of revenue and employment.
Major emerging innovations in Indian healthcare, such as 3D printing, biosimilars, zikavac, etc. are likely to drive the market growth, along with an improvement in technological capabilities. An increase in venture capital funding, ably supported by government activities, has brought about impactful innovations in India. The surge in disposable incomes, rising accessibility to better healthcare facilities, pre-eminent awareness about personal health and hygiene, and overall economic prosperity have boosted India’s per capita healthcare expenditure. Public and private players have also been increasing their expenditure on healthcare. By 2025, the Indian government plans to increase its public health expenditure to 2.5 per cent of the country’s GDP. Various policy measures and infrastructural improvements have been undertaken to meet this target.
Frost & Sullivan’s study – An Overview of Indian Healthcare Industry, 2019, finds that the Indian market is primed and well-positioned for further growth. Small and medium businesses can also make a good mark on this growing industry aided by substantial investments, support activities, evolving technology, and an expanding domestic market.
“The Indian healthcare market is well-positioned for exponential growth, driven by a substantially improved healthcare ecosystem, government support, and increasing awareness among the public,” said Krishanu Banerjee, Consultant, Public Sector Practice, Frost & Sullivan. “Government schemes such as ‘Make in India’ and ‘Digital India’ have given rise to quality start-ups, and improved awareness of healthcare in digital spaces. This, coupled with an increase in venture capital funding, has given rise to impactful innovations in India,” he added. Other factors such as long-standing expertise, location advantage, availability of resources and skilled labour, and increasing access to insurance will help the industry flourish further in India while opening up more growth and employment opportunities.
This study shares in-depth insights on:
· The healthcare scenario in India – what is the current market size and growth trends
· Government policy and initiatives to boost the performance of the sector
· Industry growth drivers and future growth prospects
· Emerging healthcare innovations in India