In terms of revenue and employment innovations, the Indian healthcare industry is likely one of the largest industries. Hospitals, medical gadgets, medical insurance, telemedicine, medical trials, medical tourism, and medical equipment are included. The rising circumstances of lifestyle diseases, the demand for reasonably priced healthcare, technological advances, and medical health insurance penetration are among the main drivers of growth for this sector. The current state of this sector and the potential of changes have been illustrated in the COVID-19 pandemic. Healthcare investment in India has always been somewhat an issue.
$9.87 Bn has been allocated to the health sector , which includes $915.72 Mn for the PMJAY health scheme, according to the last government budget (FY 2020-21). Approximately 8,059 private and 7,980 public hospitals are accredited under this and have offered care under the Ayush programme for qualified patients. The Centre also plans to increase its expenditure on healthcare to 3 percent of GDP by 2022. The sector is also attracting new investments from domestic and foreign investors in order to finance the growth of existing major hospital chains and greenfield projects. International investors are taking a keen interest in healthcare investment in India for developing hospital chains, testing laboratories, and medical devices.
The following are the factors that will attract investment in healthcare of India:
- Penetration by medical insurance
- Hospitals and associated infrastructure
- On-line session to address the medical professionals’ shortage
- Tourism in Medicine
- Tier-2 and three-city alternatives
With these recent developments and shifts in the government’s priority, as an investment opportunity, the healthcare sector is promising and rising every day and is likely to benefit all participants. Key insights about the healthcare sector from the government’s Invest India portal are:
- By 2022, the size of the healthcare industry is projected to hit $372Bn.
- 80 percent of the overall healthcare sector is the hospital industry, rising at a CAGR of 16-17 percent and is set to hit $132 Bn by 2023.
- At a CAGR of 20.4 percent, the diagnostics industry is projected to expand and is set to hit $32 Bn by 2022.
- From 2000 to 2014, there was a 370 percent rise in health spending.
- For all greenfield projects under the automatic path, the government has permitted 100 percent FDI.
- Telemedicine, artificial intelligence, mobile and wearable devices, and robotic operations are key segments.