The Indian healthcare industry, which comprises hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment, was valued at US$ 79 billion in 2012, and is expected to reach US $160 billion by 2017. The Indian healthcare sector is expected to grow at about 15 percent year-on-year (y-o-y), on account of factors such as rapid growth in infrastructure development, creation of demand for higher levels of healthcare, rising awareness of end users, and launch of innovative insurance, reimbursement, and financing policies.
The growth of the Indian healthcare sector is further driven by the 300 million strong middle class population with significant disposable income, which is likely to demand superior healthcare services.
The healthcare equipment sector attracted 8.8 per cent of the total investments in terms of deal value with an aggregate of US$ 249.01 million (20 deals), according to data released by VCCEdge.
The hospital and diagnostics centre in India received foreign direct investment (FDI) worth US$ 1,597.33 million, while drugs & pharmaceutical and medical & surgical appliances industry registered FDI worth US$ 10,318.17 million and US$ 622.99 million, respectively during April 2000 to March 2013, according to data provided by Department of Industrial Policy and Promotion (DIPP).
The diagnostics sector in India has been witnessing immense progress in innovative competencies and credibility. In addition, the emerging sectors, such as bio-generics and pharma packaging are also paving way for the pharmaceutical market to continue its upward trend during FY 2012- FY 2014.
The favourable demographic virtues offer an attractive market for healthcare providers and investors in India. An increase in foreign investment inflows and private equity (PE) deals in the industry’s various segments have also been noted, in addition to the increased focus received from the Government.
The Indian healthcare providers plan to spend Rs 5,700 crore (US$ 986.16 million) on IT products and services in 2013, a 7 per cent rise over 2012 revenues of Rs 5,300 crore (US$ 916.96 million), as per a report by Gartner.
India and the United Kingdom (UK) have signed a memorandum of understanding (MoU) on cooperation in the field of health sector. The latter is eager to assist and partner India in achieving low-cost, high quality care, said Mr Kenneth Clarke, British Cabinet Minister and Prime Minister's Trade Envoy.
Some of the major investments in the sector include: