The Indian Healthcare industry reached US$ 193.83 billion by 2020 and is estimated to touch US$ 372 billion by 2022. Healthcare has become one of India’s largest sector, both in terms of revenue and employment. Healthcare comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players. Add to this the covid conundrum and the long term side effects of it.
India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Europe.
The large scale corona vaccine drive in India is a testimony to its robust healthcare industry given the vast population at stake.
The healthcare market can increase three-fold to Rs. 8.6 trillion (US$ 133.44 billion) by 2022. In Budget 2021, India’s public expenditure on healthcare stood at 1.2% as a percentage of the GDP.
In FY21, gross written premiums in the health segment grew at 13.7% YoY to Rs. 58,584.36 crore (US$ 8.00 billion). The health segment has a 29.5% share in the total gross written premiums earned in the country.
Between April 2000 and December 2020, FDI inflows for drugs and pharmaceuticals sector stood at US$ 17.74 billion, according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
The government announced Rs. 64,180 crore (US$ 8.80 billion) outlay for the healthcare sector over six years in the Union
Budget 2021-22 to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary and tertiary
care, healthcare systems.
In the Union Budget 2021, the Ministry of AYUSH was allocated Rs. 2,970 crore (US$ 407.84 million), up from Rs. 2,122 crore
(US$ 291.39 million).
The hospital industry in India is forecast to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 with a CAGR of 16–17%.
The Government of India is planning to increase public health spending to 2.5% of the country's GDP by 2025.