IBEF印度医疗行业分析英文20181035页1mb

Summary of the Indian Healthcare Sector

Core Content

The Indian healthcare sector is experiencing significant growth, driven by rising incomes, an aging population, and increasing health awareness. It is projected to become one of the top three healthcare markets in terms of incremental growth by 2020, with the total market size expected to reach US$ 372 billion by 2022. The sector is also a major employer, with 319,780 jobs in FY17 and an estimated 40 million jobs by 2020.

Main Viewpoints

• Market Growth: The healthcare sector is growing at a CAGR of 22% from 2016 to 2022, with the hospital industry expected to grow at 16-17% to reach Rs 8.6 trillion (US$ 132.84 billion) by FY22.
• Healthcare Expenditure: Per capita healthcare expenditure has increased rapidly due to rising incomes and better access to high-quality services. The government's healthcare spending is expected to rise to 1.4% of GDP by FY18.
• Medical Tourism: India is a leading destination for medical tourism due to its world-class hospitals, skilled professionals, and low treatment costs. The market is expected to grow from US$ 3 billion in 2017 to US$ 9 billion by 2020.
• Traditional Healthcare: The traditional medical care sector, including Ayurveda, Yoga, and Homeopathy, is growing at a CAGR of 16%. The government has launched initiatives to promote these systems and has allocated significant funds for their development.
• Health Insurance: Coverage is currently at less than 27% of the population, but demand is increasing due to rising healthcare costs and the burden of new diseases. The health insurance segment is expected to grow exponentially in the coming years, with a 25.2% share in gross direct premiums in FY18.

Key Information

Market Overview

• The healthcare market is divided into five segments: hospitals, medical devices, pharmaceuticals, health insurance, and traditional medicine.
• Pharmaceuticals turnover reached US$ 14.97 billion in 2017, with a 5.5% annual growth.
• The medical devices market is expected to grow from US$ 4.9 billion in 2017 to US$ 11 billion by 2022.

Trends and Strategies

• Shift to lifestyle diseases: Lifestyle diseases such as heart disease, diabetes, and obesity are becoming more prevalent, increasing demand for specialised care.
• Expansion to tier-II and tier-III cities: The government has introduced tax incentives to encourage private sector expansion in smaller cities.
• Telemedicine: The sector is expected to grow at a CAGR of 20% to reach US$ 32 million by 2020. Major hospitals like Apollo and AIIMS have adopted telemedicine services.
• Home healthcare: Enabled by IT and medical electronics, the home healthcare market is expected to reach US$ 6.21 billion by 2020, with cost savings of 20-50%.
• Management contracts: Hospitals are increasingly entering into management contracts with private entities to boost revenue and efficiency.

Government Initiatives

• Ayushman Bharat: Launched in 2018, this scheme provides health insurance coverage of up to Rs 5 lakh per family per year to 100 million poor families.
• National Health Mission (NHM): Aims to improve healthcare infrastructure and services, with a budget of Rs 85,217 crore (US$ 13.16 billion).
• National Health Resource Repository (NHRR): A centralized database of healthcare resources, launched in 2018.
• National Nutrition Mission (NNM): Aims to reduce stunting, under-nutrition, and anemia, with a three-year budget of Rs 85,217 crore (US$ 13.16 billion).

Policy and Investment

• FDI Inflows: 100% FDI is allowed for greenfield projects under the automatic route, and up to 100% for brownfield projects under the government route.
• Cumulative FDI inflows into the healthcare sector from April 2000 to June 2018 stood at US$ 22.75 billion, with US$ 15.83 billion in pharmaceuticals, US$ 5.25 billion in hospitals and diagnostic centers, and US$ 1.67 billion in medical appliances.

Growth Drivers

• Rising demand: Increasing elderly population and changing disease patterns are major contributors to growth.
• Cost advantages: Low treatment costs and affordable medical services have boosted the attractiveness of India for medical tourism and R&D.
• Policy support: The government has introduced tax holidays, incentives for healthcare education, and investments in infrastructure and R&D.

Opportunities

• Healthcare Infrastructure: India needs 3 million additional beds by 2025 to achieve a target of 3 beds per 1,000 people. Over US$ 200 billion is expected to be invested in healthcare infrastructure by 2024.
• Research: The contract research segment is growing rapidly, with the cost of developing new drugs in India being 60% lower than in the US. The number of clinical trials has increased by 400% from 2013 to 2017.
• Medical Tourism: The market is expected to double in value by 2018-19, with 21 JCI-accredited hospitals in India.
• Health Insurance: With increasing demand for affordable and quality healthcare, the health insurance market is expected to grow exponentially, with a 25.2% share in gross direct premiums in FY18.

Key Industry Organisations

• Indian Brand Equity Foundation (IBEF): Provides market research and analysis on the Indian healthcare sector.
• All India Institute of Medical Sciences (AIIMS): A major government institution for medical education and research.
• National Health Profile (NHP): Offers data on healthcare infrastructure and services in India.
• Ministry of Health and Family Welfare: Implements major healthcare policies and initiatives.
• Medical Tourism Association: Promotes India as a medical tourism destination.

Useful Information

• Medical Colleges: Increased from 314 in FY11 to 476 in FY18.
• Doctors: Registered doctors (under IMC Act) increased from 827,006 in 2010 to 841,104 in 2017.
• Nurses: Expected to increase by 2.4 million by 2025.
• Healthcare Jobs: Expected to create 58,000 job opportunities by 2025.
• Telemedicine: Expected to reach US$ 32 million by 2020.

Conclusion

The Indian healthcare sector is on a path of rapid growth, supported by favorable policies, increasing demand, and cost advantages. With a focus on infrastructure development, technological innovation, and expanding access to services, the sector is poised to become a global healthcare hub. The government's initiatives such as Ayushman Bharat and the National Health Mission are playing a crucial role in improving healthcare accessibility and quality. Opportunities for both domestic and international players are abundant, particularly in the areas of medical tourism, health insurance, and traditional healthcare.