Healthcare industry in developing world is all set to grow exponentially and India with its inherent qualities can become the global hub for healthcare services
India is very well placed to tap the growing potential of the healthcare sector. It has the relevant skill-sets with adequate human resources to become the preferred healthcare player in emerging countries across the globe.
The Indian healthcare includes pharmaceuticals, healthcare, medical and diagnostic equipment and surgical equipment and supplies and the market estimated to be US$ 30 billion. Revenues from the healthcare sector account for 5.2 per cent of the GDP and it employs over 4 million people. Private spending accounts for almost 80 per cent of total healthcare expenditure.
According to the Commerce Minister Kamal Nath, the services sector in India has clearly come of age, as Indian companies have move towards higher value services, in knowledge processing, remote infrastructure management, design and engineering. The healthcare in India can expect another boom with outsourcing in the healthcare sector having come a long way from low-end claims processing and transcription to analytics and clinical processing.
With combined annual growth rate of 150 percent over the last couple of years, the medical service outsourcing has enormous growth potential.
India will spend US$ 45.76 billion on healthcare in the next five years as the country is witnessing changes in its demographic profile accompanied with lifestyle diseases and increasing medical expenses, according to a study by CII-McKinsey on ‘Health in India’. The total healthcare market in the country could increase to US$ 53-73 billion (6.2-8.5 per cent of GDP) in the next five years.
Private healthcare will continue to be the largest component in 2012 and is likely to double to US$ 35.7 billion. It could rise by an additional US$ 8.9 billion if health insurance cover is extended to the rich and middle class.
Scope for growth
The growing healthcare market accompanied by the socio-economic changes in the population has made the Indian healthcare industry an attractive investment proposition. Nearly 90 per cent of the private healthcare is met by the unorganised sector thus there is huge potential market for the organised sector to tap.
Some of the prominent corporate hospital networks in the country
|Apollo Hospitals||41 specialty hospitals|
|Fortis Healthcare||12 hospitals|
|Max Healthcare||8 hospitals|
|Wockhardt Hospitals||10 hospitals|
|Manipal Group||11 hospitals, including 8 teaching hospitals|
|Artemis Health Institute||1 hospital (plan to have 15 hospitals across India by 2015)|
|Paras group||1 hospital (new)|
|MediCity||1 hospital (new)|
Some of the major foreign players who have entered India include Singapore based Parkway Group and Pacific Healthcare Holding, Malaysia-based Columbia Asia, Dubai-based EMAAR Group, and US based Prexus Healthcare Partners.