Indian medical tourism market is growing at the rate of 18 per cent year on year and is expected to reach US$ 9 billion by 2020. There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. The government’s expenditure on the health sector has grown in recent years.Health insurance is gaining momentum in India. Gross direct premium income underwritten by health insurance grew at 14.70 per cent y-o-y to Rs 42,328.18 crore (US$ 6.06 billion) in FY20 (up to January 2020). The Government of India is planning to increase public health spending to 2.5 per cent of the country's GDP by 2025. The healthcare market can increase three-fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022.
The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 6.625 billion between April 2000 and December 2019, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT).
Forecast for the Industry
The Government of India aims to increase healthcare spending to three percent of the Gross Domestic Product (GDP) by 2022. India’s healthcare industry is one of the fastest growing sectors and it is expected to reach $280 billion by 2020.
The hospital industry in India is forecasted to increase to Rs 8.6 trillion (US$ 132.84 billion) by FY22 from Rs 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16-17 per cent.
The Government of India is planning to increase public health spending to 2.5 per cent of the country's GDP by 2025.