The healthcare industry forms the backbone of any nation's well being and can be broadly divided into five segments namely hospitals, pharmaceuticals, diagnostics, medical equipment & supplies and medical insurance.
The Indian healthcare sector is expected to reach US$ 100 billion by 2015 from the current US$ 65 billion, growing 20 per cent year-on-year (y-o-y), as per rating agency Fitch. The industry aims to touch US$ 79 billion in 2012 and US$ 280 billion by 2020, on back of increasing demand for specialised and quality healthcare facilities.
In order to strengthen bilateral cooperation, India and Netherlands have signed a memorandum of understanding (MoU) in health and medicine.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) is promoting 'iPhex 2013' to showcase country's pharmaceutical products. Medicine exports from India are pegged at about Rs 64,000 crore (US$ 11.62 billion), and about 50 per cent goes to the emerging markets, as per Dr P V Appaji, Director-General, Pharmexcil.
The hospital services market, which represents one of the most important segments of the Indian healthcare industry, is expected to be worth US$ 81.2 billion by 2015.
Further, the healthcare segment offers an attractive growth opportunity for the information technology (IT) and business processing outsourcing (BPO) industry. The market for outsourced services to healthcare payers is expected to increase from US$ 9 billion in 2011 to US$ 15 billion in 2016, according to research firm NelsonHall.
In addition, the Indian pharmaceutical market is also expected to grow at a compound annual growth rate (CAGR) of 15.3 per cent during 2011-12 to 2013-14, as per Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals.
The healthcare and life sciences sector has received the maximum investment from private equity (PE) and venture capital (VC) players, attracting US$ 817 million across 29 investments till August 2012, according to data from Venture Intelligence. Last year, 38 deals were recorded in the sector worth US$ 421 million.
The hospital and diagnostic centre in India has attracted foreign direct investment (FDI) worth US$ 1.48 billion, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 9.78 billion and US$ 571.91 million, respectively during April 2000 to October 2012, according to data provided by Department of Industrial Policy and Promotion (DIPP).
The private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute.
Some of the major investments in the sector include: