Rising population, increasing government expenditure on health care sector, growing consciousness of the people regarding their health, attractive health insurance policies etc., are some of the reasons that have made health care sector as an important sector for investment. According to recent estimates there is an investment opportunity of $25 billion in the next five years.
Facts and Figure
- Health care is one of the largest service sector in India
- In 2005, the sector generated the revenue of about $30 billion that is 5% of the GDP
- Health care industry is growing at the robust pace of over 12% p.a. in the past four years
- The cheap and at the same time world class medical facilities is prompting the foreign nationals to flock here and avail the health benefits
- Government is also promoting the concept of medical tourism. From 2001 to 2004-05, the medical tourists number have risen from 10,000 to 100,000
- The reputation of Indian hospitals for providing quality services is increasing globally
- According to NHS UK, India is a preferred destination for surgery
- The health care sector consist of independent, privately-run hospital and health care centers
- Private health care centers accounts for the major share. Nearly 63% of the total spend is accounted by the private health care sector
- Government health centers and the corporate health sectors account for the rest
- Private sector corporate entities in the Indian health sector is quite low. Noted service providers in this sector include Apollo Hospitals, Escorts Group and Fortis Healthcare
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Government of India Policy
- To encourage investment in the health care sector, government of India has allowed 100% FDI under the automatic route
- Government has also accorded the infrastructure status to the hospitals
- Lower tariffs on medical equipment
- Government has also announced tax holiday for five years for the hospitals in rural areas
Investment Opportunity and Business Potential
There is a huge scope of investment in the health care sector in India. It is becoming one of the largest service providers in India. The health care industry is growing fast and it is expected that this sector would grow with the pace of 15% p.a. to $60 billion by 2010.
The world class yet cost effective services provided by the Indian health care industry would encourage the medical tourism. It is expected, that by 2010, medical tourism will become $2 billion industry.
More over health care BPO is also expected to become a $4.5 billion industry by 2008
Market Drivers of Health Care Sector
- Health awareness is rising
- Health insurance sector is also on the rise
- Private sector companies are growing fast in terms of owning and managing hospitals
- Growth in medical tourism
- Cost effective surgical services. According to report, the cost of surgery in India is just about 10% of that in USA
Opportunities in various segments along the value
- Diagnostics Services: Imaging and pathology labs
- Infrastructure: Hospitals, Diagnostic centers
- The benefits of health Insurance is availed by just 30-40 million Indians which is expected to rise to 160 million by 2010
- Healthcare BPO is also growing fast. The services include medical billing, disease coding, forms processing and claims adjudication
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Unknown
October 29, 2013 at 12:12 AM
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