Hospital and Health Sector 



Indian economy is one of the largest in the world on the basis of purchasing power parity (PPP). It is the most attractive destinations for business investment in India. During April-January 2012-13, India received foreign direct investments (FDI) worth US$ 30.82 billion while FDI equity inflows during January 2013 stood at US$ 2.16 billion, according to latest data released by the Department of Industrial Policy and Promotion (DIPP).

 

The healthcare sector of Indian hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment, is expected to reach US$ 160 billion by 2017.On rising demand, the hospital services sector is expected to be worth US$ 81.2 billion by 2015. The Indian hospital services industry generated revenue of over US$ 45 billion in 2012.

 

India received in hospital and diagnostics centre the foreign direct investment (FDI) worth US$ 1,914.28 million, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 11,318.32 million and US$ 653.45 million, respectively during April 2000 to June 2013, according to information given by Department of Industrial Policy and Promotion (DIPP). India is the third-most attractive destination for FDI in the world. Indian markets have significant potential and a favorable regulatory regime for foreign investors, according to a survey titled World Investment Prospects Survey 2012ñ2014 by UNCTAD.

 

Over the past decade, India has emerged as the biggest and most competitive destination for FDI or Foreign Direct Investments. In the past, India was mostly regarded as a developing country, now it is seen as a strategic location for conducting profitable international business.


India’s healthcare sector is expanding rapidly, contributing to 6% of GDP. It has become the largest sector in terms of generating employment and revenue, hence why it is attracting healthcare investors from across the world.

Overall healthcare revenue breakup in India

·  Hospitals – 71%                                                                                                                                   

·  Pharmaceuticals – 13%

·   Medical equipment – 9%

·   Medical insurance – 4%

·  Diagnostics – 3%

 

According to Fitch, a rating agency, the Indian healthcare industry is estimated to touch $100 billion in 2015, growing by 20% every year. By 2020, it is expected to reach $280 billion. The ever-growing increase in the demand for professional and expert healthcare facilities will give a further boost to India’s healthcare sector.

 

Medical Tourism

Several key trends are giving impetus to the growth of India’s healthcare sector. Of these, medical city is relatively a new concept that offers immense growth opportunities, in addition to the medical tourism. India is also regarded as the most competitive destination with advantages of lower cost and sophisticated treatments. Due to such promising factors, the medical tourism has great potential in the country.

 

The industry in India is pegged at US$ 1 billion per annum, growing at around 18 per cent and is expected to touch US$ 2 billion by 2015. India has witnessed an influx of patients from Africa, CIS countries, Gulf and SAARC nations, Pakistan, Bangladesh and Myanmar, who mainly come for organ transplant, orthopedic, cardiac and oncology problems.

 

Apollo Hospitals has six tele-medicine (through video-conferencing system) centres in the East and North East India. Plans are afoot to add another 24 over the next couple of years.

 

Key Factors in growth of health care industry:

 

1.Increase in population

 

2.Increase in lifestyle related health problems

 

3.Faster diagnosis leading to early treatment – health awareness & prevention

 

4.Better penetration of health insurance

 

5.Medical tourism

 

6.Medical insurance and compulsory wellness checkups by companies

 

7. Government programs and focus on PPP (Public Private Partnership) models in healthcare to reach deeper into rural areas

 

8.  Rising literacy and growing awareness.

 

9. In Indian hospitals, the availability of hospital beds is less than required. Hence by 2025, there is an impending necessity to add $1.8 million extra beds to attain the ratio of 2 beds/1000 people.

 

10.  Only 2% of the total Indian population is covered under health insurance, but due to the growth of the middle class, better education, and awareness, the numbers are expected to grow upwards

 

11.  Patients mostly from Gulf & SAARC Nations, Africa, CIS countries, Bangladesh, Pakistan, and Myanmar are attracted to India for treatment. They come mainly for orthopedic treatments, organ transplant, cardiac & oncology issues. Medical tourism is assessed to rise 27% (CAGR), which is from $1.9 billion (2011) to $3.9 billion (2014).

 

12.  Telemedicine is the best solution for health care facilities in rural and semi-urban sectors because of the lack of doctors. Development of the Indian IT sector plays an important role in the growth of telemedicine.

 

13.  A report by PwC stated that the Indian medical technology sector is projected to peak from $2.7 billion (2008) to $14 billion (2020).

 

14.  The Indian medical equipment and implants sector contributes to approximately 85% of the import market. Investment opportunities are also seen on machineries like X-ray, ECG, in-vitro diagnostics, patient monitoring, etc.

 

Opportunities in healthcare industry of India     


The Indian healthcare sector is ripe for the expansion and significant growth due to the reasons mentioned above. One of the main factors is increase in the space of medical tourism in India. Medical tourism in India is growing at a compounded annual growth rate of over 27 per cent during 2009-2012. Medical tourism market is valued to be worth USD 310 million and is expected to generate USD 3.9 billion by 2014 and is growing at 30 per cent a year.

 

Consultancy services:

 

·         Market Research

·         Feasibility Study

·         Partner Search

·         Incorporation of company as private Limited or public Limited company.

·         Supervise, running of business and mange the legal affairs time to time ass required.

·Find land/ building/premises for hospital or health care project to acquire legal title.

 

·         Advice and take care the construction of building or alteration or changing of structure as required under various laws and regulations to get  accreditation, permissions, licenses, etc.,in coordination with it’s related technical personnel and professionals.

 

Establish, manage, look after and take care all the legal affairs step by step required from establishment of hospital/ health care project with it’s sophisticated running in coordination with team of doctors, professionals and experts till the repatriation of income with invested amount.

 

For more details please contacts us:   Enquiry 

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