Knowledge Based Guidance for Sustainable Growth...

Hospitals, Lifecare & Pharma

The Indian healthcare industry is growing in leaps and bounds. At present it is expected to grow at a CAGR of 15.2% over the 2011-2017 period and reach an estimated USD 250 billion by 2020. The healthcare revenues in India from hospitals and pharmaceuticals are 71% and 13% respectively. Particularly the growth of the private sector has emerged as an important factor in the industry, an increase of 15% (2005-2015) is expected in its share of healthcare delivery.

The main growth factors are increasing population, increase in disposable income, increase in lifestyle related health issues, fall in the cost of treatments, a thrust in the medical tourism sector, improving health insurance penetration and a growing health awareness. Along with these a slew of government initiatives and a renewed focus on public-private partnerships (PPP) models are acting as game-changers in the Indian market.

Indian metropolitan cities increasingly have hospitals with world class infrastructure, processes and outcomes and easy access to medication and healthcare professionals. However, about 70% of the entire healthcare infrastructure is limited only to the top 20 Indian cities with a total population of about 100 million. The remaining population (about 1.2 billion) is presently out of reach of the healthcare mechanism driving the industry’s growth. Innovations and investments to make healthcare affordable and easily accessible to such a huge market is a required in both healthcare products and delivery.

Healthcare systems differ greatly in means, methodology and approach, but all are faced with mediocre health outcomes and ever increasing cost curve that is unsustainable in the long term. New and innovative approach to affordable healthcare without compromising ease of access to care and quality is essential in sustaining the market as well as improving the economy.
The healthcare market provides existing and new players with an opportunity to create innovation, differentiation and profits. It is estimated that within the next decade, an increase in consumer awareness and demand for better facilities will define the country’s second largest service sector employer.

The Indian pharmaceutical industry is on the verge of becoming a major global market by the year 2020 with an expected CAGR of 15%-20% with a valuation of USD 50 billion to USD 74 billion within the next decade.

A significant producer of APIs and formulations, the country’s pharmaceutical companies include global players in generic drugs and vaccines. Some of the top Indian pharmaceutical companies are now partially foreign-owned and generating more than half of their sales outside the country. India’s large pool of scientific manpower can be harnessed in drug research such as drug discovery, development and clinical tests and trials.

The economic growth of India has increased the buying power of the middle class for healthcare products such as medicine. A rise in lifestyle diseases has increased the demand for medications. Some leading MNCs have already established a foothold in the country.


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