The Government of India aims to develop India as a global healthcare hub. India offers a huge patient pool, favourable regulatory environment and a cost advantage to conduct clinical trials. Healthcare expenditure in India is expected to increase at a compound annual growth retae (CAGR) 12 per cent per annum during 2011-15. Rising incomes, greater health awareness, lifestyle diseases, and increasing insurance penetration will contribute to increase this growth.
Healthcare markets five major segments are - Hospitals (generate 71 per cent revenue), Pharmaceutical (generate 13 per cent revenue), Diagnostics (generate 9 per cent revenue), Medical Equipment and Supplies (generate 4 per cent revenue) and Medical Insurance (generate 3 per cent revenue).
Telemedicine is fast-emerging in India. The private sector accounts for 68 per cent of overall healthcare spending. The size of the healthcare industry is expected to touch US$ 72 billion by 2012 and US$ 280 billion by 2020.
100 per cent foreign direct investment (FDI) is being permitted for all health related services under the automatic route. Contract research is a fast growing segment in the Indian health care industry. In FY11, the mergers and acquisitions (M&As) deal value in healthcare stood at US$ 4.2 billion, an increase of more than 230 per cent compared to deals in FY10.
The Indian medical tourism industry is poised to grow at 30 per cent annually into a US$ 2 billion business by 2012. There has been a wide array of policy support in the form of reduction in exercise duties and higher budget allocation for the healthcare sector to develop India as a global healthcare club.