The Indian healthcare sector, one of the fastest growing industries, is expected to grow at a compound annual growth rate (CAGR) of 17 per cent during 2011-2020 to touch US$ 280 billion. Rising income levels, ageing population, growing health awareness and changing attitude towards preventive healthcare is expected to boost healthcare services demand in future.
The private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute. Its share in healthcare delivery is expected to increase from 66 per cent in 2005 to 81 per cent by 2015. In India, private healthcare accounts for almost 72 per cent of the country's total healthcare expenditure.
Per capita healthcare expenditure is estimated to grow at a CAGR of 15.4 per cent during 2008-2015E to reach US$ 88.7 on the back of rising incomes, easier access to high-quality healthcare facilities and greater awareness of personal health and hygiene.
The Government of India aims to develop India as a global healthcare hub. It has created the National Health Mission (NHM) for providing effective healthcare to both the urban and rural population.
India has an advantage over its peers in the West and Asia in terms of cost of high-quality medical services offered. It offers a huge patient pool, favourable regulatory environment and cost advantage for conducting clinical trials.