The Indian healthcare sector can be viewed as a glass half empty or a glass half full. The challenges the sector faces are substantial, but the opportunities are equally compelling. For those that view it as a glass half full, the potential is enormous.
Indian healthcare industry in a nutshell
The healthcare delivery market in India was estimated at around US$ 45 billion in 2010. It has been witnessing double digit growth rates in recent years with growing demand for quality healthcare services. Though the government healthcare organizations play a significant role in catering to the medical needs of the population, there is a predominant presence of the private sector in the industry.
Despite an incredible growth in recent times, the Indian healthcare system can be described as a paradoxical one. On the one hand, the country boasts of ‘best in class’ healthcare delivery attracting medical tourists from across the world, while on the other, there is a near absence of accessible & affordable quality healthcare services for a large part of its population, especially in the rural areas. Moreover, just less than 10 per cent of the population is covered under health insurance.
The government support to the entry of private players in the sector, an effective use of medical technology supported by continuous innovation, development of infrastructure and ICT would be a way forward towards the development of healthcare industry in the country. Therefore, India provides the significant opportunity for the investors, medical technology providers and insurers throughout the world to invest in one of the fastest developing healthcare nations in the world.
Does India have potential to become the global healthcare destination?
To analyze the potential of healthcare development in India, let’s first take a look at the key trends, which are driving the growth of healthcare sector in the country.
- · Increasing awareness about health & health related issues
- · Increase in lifestyle diseases
- · Ageing population
- · Insurance penetration
- · Government recognizing the need to partner with private sector
- · Medical tourism industry expected to grow due to cost-efficient quality healthcare services
The key sectors poised for tremendous growth include-
- · Medical technology
- · Healthcare Insurance
- · Infrastructure
- · Pharmaceuticals
- · Medical Tourism