Key components of the healthcare market in India are Hospitals (government & private), Pharmaceuticals, Diagnostics (imaging & pathology), Medical equipment, Supplies, Medical insurance & Telemedicine. The hospital industry in India accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. The diagnostics industry & primary health-care industry has also been witnessing major growth. World’s one of the largest government funded healthcare scheme, Ayushman Bharat was launched in September 2018. Over 70 000 Ayushman Bharat centres, which aims at providing primary health care services to communities closer to their homes, are operational in India.
100% FDI is permitted under automatic route for greenfield projects. For brownfield projects, upto 74% through automatic route, beyond 74% under approval route
Current Scenario
- FDI in hospitals & diagnostic centers stood at $ 7.72 billion during April 2000 –December 2021, representing 1.35% of total FDI inflows during the said period
- The diagnostics industry in India is currently valued at $4 billion. The primary care industry is valued at $13 billion
- Over 2000-2014, there has been an increase of 3.7 times in health expenditure in India
Investment Opportunities
- Telemedicine, hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, medical equipment
- Healthcare infrastructure, home-based care services, health-care & wellness centers
- Mobile & wearable devices (such as glucose monitors, exercise trackers, etc.) acting as preventive measures against health issues
- Technology, robotic process automation, Internet-of-medical-things (IOMT), AI
Why Invest?
- Healthcare is one of India’s largest sectors in terms of both revenue & employment
- PLI scheme for domestic manufacturing of Medical Devices & promotion of Medical Device Parks with financial outlay of INR184.20 billion
- Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to increasing healthcare costs, technological advancements, emergence of telemedicine, rapid health insurance penetration & government initiatives like e-health together with tax benefits & incentives are driving factors for growth of healthcare market in India
- The industry is growing at a tremendous pace owing to its strengthening coverage, services & increasing expenditure by public as well private players
Read Ahead
- Over $200 billion to be spent on medical infrastructure by 2024. Telemedicine expected to be key area of growth. Several telemedicine mobile applications have emerged. COVID-19 pandemic has been a catalyst for the advancement of telemedicine in India
- Health-care organizations need providers for successfully deploying AI powered solutions. Patient care & experience, operations & R&D are top priorities for AI implementation
- India is emerging as a strong market for wearables, with approx. 2 million units sold in 2017, expected to reach 129 million units in 2030
