On March 31, 2021, National Institution for Transforming India (NITI Aayog) Member Dr VK Paul, CEO Amitabh Kant, and Additional Secretary Dr Rakesh Sarwal released a report titled ‘Investment Opportunities in India’s Healthcare Sector’. The report highlights the range of investment opportunities in different segments of India’s Healthcare sector.
i.As per the report,
- Investments in the Healthcare sector are expected to reach USD 372 Billion in 2022.
- The FDI inflows in the sector increased from USD 94 million in 2011 to USD 1, 275 million in 2016 (a jump of over 13.5 times).
- The sector has been growing at a CAGR (Compound Annual Growth Rate) of 22% since 2016, providing direct employment to around 4.7 Million People.
- It has the potential to generate 2.7 Million additional jobs in India between 2017-22 (over 500, 000 new jobs per year).
- At this rate, Healthcare is set to become one of the largest sectors of the Indian economy in terms of both revenue & employment.
ii.The report states that expansion of Private players to Tier 2 & Tier 3 locations will offer attractive investment opportunities.
iii.The report provides insights regarding employment generation potential, prevailing business, investment climate & an overarching policy landscape.
iv. Hospital industry in India accounts for 80 per cent of the total healthcare market, the report said. The hospital industry was valued at USD 61.79 billion in 2016-17 and is expected to reach USD 132 billion by 2023, growing at a CAGR of 16 per cent-17 per cent.
v.There are seven key segments they are, hospitals and infrastructure, health insurance, pharmaceuticals and biotechnology, medical devices, medical tourism, home healthcare as well as telemedicine and other technology-related health services.
Factors driving growth of Indian Healthcare sector
The report has listed several factors behind the growth of the Indian Healthcare sector. They are Aging population, growing middle class, rising proportion of lifestyle diseases, emphasis on public-private partnerships & increased adoption of digital technologies, increased FDI inflows over the last two decades.
Support of Central Government
It also highlights the steps taken by Government of India to boost the investment opportunities.
- ‘Atma Nirbhar Bharat Abhiyaan’ package which has short-term & longer-term measures for growth of health care system.
- Introduction of Production-Linked Incentive (PLI) schemes for boosting domestic manufacturing of pharmaceutical and medical devices.
- COVID-19 has presented an opportunity for the expansion of the telemedicine & home healthcare market in India.
- India is also working towards becoming the global hub for spiritual & wellness tourism.
Union Budget Allocation:
i.The government’s plans to increase budgetary allocation for public health spending to 2.5% of the country’s GDP by 2025 will benefit the hospital sector as well.
Recent Related News:
i.On December 14, 2020, NITI Aayog publicized a white paper titled “Vision 2035: Public Health Surveillance in India” which was released by NITI Aayog Vice Chairman Dr Rajiv Kumar; Member (Health) Dr Vinod K Paul; Chief Executive Officer (CEO) Amitabh Kant; and Additional Secretary Dr Rakesh Sarwal.
About NITI Aayog:
Chairperson – Prime Minister (Narendra Modi)
CEO – Amitabh Kant
Headquarters – New Delhi