IBEF-印度医疗保健业报告（英文）-2018.9-35页-1mb

Summary of the Indian Healthcare Sector

Core Content

The Indian healthcare sector is experiencing significant growth, driven by a combination of demographic changes, economic development, technological advancements, and supportive government policies. It is projected to become one of the top three healthcare markets in terms of incremental growth by 2020, with the market size expected to reach US$ 372 billion by 2022, up from US$ 110 billion in 2016. The hospital industry alone is anticipated to grow to Rs 8.6 trillion (US$ 132.84 billion) by FY22, with a CAGR of 16-17%.

The sector is also expected to create 40 million jobs by 2020, and 58,000 new job opportunities by 2025. The government has taken several steps to boost the industry, including increasing healthcare spending to 3% of GDP by 2022, allocating US$ 10 billion for the National Rural Health Mission (NRHM), and launching initiatives like Ayushman Bharat, which is the world's largest government-funded healthcare programme, covering 100 million poor families with up to Rs 5 lakh (US$ 7,723.2) per family per year for hospitalisation.

Main Points

Market Overview and Trends

• The Indian healthcare market is composed of five segments, including hospitals, medical devices, pharmaceuticals, health insurance, and traditional medicine.
• The pharma market is growing, with US$ 14.97 billion in turnover in 2017.
• Medical devices are expected to grow from US$ 4.9 billion in 2017 to US$ 11 billion by 2022.
• Health insurance is gaining momentum, with 25.2% of overall gross direct premium income in FY18 and 19% y-o-y growth in 2018.

Notable Trends and Strategies

• Shift from communicable to lifestyle diseases: Lifestyle diseases such as heart disease, diabetes, and obesity are increasingly prevalent, boosting demand for specialised care.
• Expansion to Tier-II and Tier-III cities: Government incentives are encouraging private hospitals to expand into smaller cities.
• Telemedicine: A fast-growing sector, expected to reach US$ 32 million by 2020, helping bridge the rural-urban divide in healthcare access.
• Home healthcare: Integration of IT and medical electronics allows for affordable and high-quality care at home, reducing costs by 20-50%.
• Medical tourism: India is a preferred destination due to its low treatment costs and high-quality medical facilities. The market is expected to reach US$ 9 billion by 2020, with 21 JCI-accredited hospitals.
• Traditional medicine: Ayurveda and other traditional systems are gaining international attention, supported by government initiatives like the National AYUSH Mission and National Health Resource Repository.

Growth Drivers

• Rising incomes and affordability: Per capita GDP is expected to reach US$ 3,273.85 by 2023, enhancing access to healthcare.
• Ageing population: The elderly population is projected to grow from 98.9 million to 168 million by 2026.
• Policy support: The government has introduced tax holidays, excise duty reductions, and 100% FDI in the AYUSH sector for medical tourism.
• Investment environment: The sector is attracting private equity, venture capitals, and foreign players, with FDI inflows in the healthcare sector reaching US$ 15.83 billion from April 2000 to June 2018.

Key Industry Organisations

• Indian Brand Equity Foundation (IBEF): Provides insights and analysis on the Indian healthcare sector.
• ASSOCHAM-RNCOS: Jointly published a paper on the growth and development of the healthcare industry.
• Ministry of Health and Family Welfare: Implements major healthcare initiatives and policies.
• Ministry of External Affairs (Investment and Technology Promotion Division): Promotes FDI and technology in the healthcare sector.
• Drug Controller General of India (DCGI): Regulates drug approvals and supports innovation in the sector.

Useful Information

• Medical colleges: Increased from 314 in FY11 to 476 in FY18.
• Doctors: Rose from 827,006 in 2010 to 841,104 in 2017.
• Health insurance coverage: Less than 27% of the population is currently covered.
• Government healthcare expenditure: Increased from 1.2% of GDP in FY14 to 1.4% in FY18.
• FDI in healthcare: Automatic route allows 100% FDI for greenfield projects, while brownfield projects are permitted up to 100% FDI under the government route.

Opportunities

• Healthcare infrastructure: 3 million additional beds and 1.54 million more doctors and 2.4 million more nurses are needed by 2025.
• Research and development: India is becoming a hub for clinical research and contract research, with testing costs being 60% lower than in the US.
• Medical tourism: Expected to double in value by 2018-19, reaching US$ 9 billion by 2020.
• Health insurance penetration: Set to grow exponentially due to increasing healthcare costs and demand for affordable services.

Conclusion

India's healthcare sector is poised for substantial growth, supported by a strong policy environment, increasing demand for healthcare services, and a competitive cost structure. The integration of technology, expansion into new markets, and emphasis on both traditional and modern medical practices are key factors driving this growth. The government's initiatives, such as Ayushman Bharat and the National Health Mission, are playing a crucial role in improving healthcare access and quality across the country.