Commerce Dashboard
Healthcare
The Government of India is planning to increase public health spending to 2.5 per cent of the country's GDP by 2025.

Indian Healthcare Industry Analysis

    Last updated on Sep, 4 2020

Indian healthcare sector is expected to reach Rs 19.57 lakh crore (US$ 280 billion) by 2020. Rising income level, greater health awareness, increased precedence of lifestyle diseases and improved access to insurance would be the key contributors to growth. Health insurance is gaining momentum in India. Gross direct premium income underwritten by health insurance grew 17.16 per cent y-o-y to Rs 51,637.84 crore (US$ 7.39 billion) in FY20.

As of April 2020, number of sub centres reached 169,031 and number of primary health centres (PHCs) increased to 33,987.

The hospital industry in India is estimated to touch US$ 372 billion by 2022 from US$ 160 billion in 2017.

National Telemedicine services completed more than 2 lakh teleconsultations since its launch, enabling patient-to-doctor consultations from the confines of their home, as well as doctor-to-doctor consultations.  

Private sector has emerged as a vibrant force in India's healthcare industry, lending it national and international repute. It accounts for almost 74 per cent of the country’s total healthcare expenditure. Telemedicine is a fast-emerging trend in India. Major hospitals (Apollo, AIIMS, and Narayana Hrudayalaya) have adopted telemedicine services and have entered several public-private partnerships (PPP). Further, presence of world-class hospitals and skilled medical professionals has strengthened India’s position as a preferred destination for medical tourism.

Indian medical tourism market is growing at the rate of 18 per cent y-o-y and is expected to reach US$ 9 billion by 2020. The value of merger and acquisition (M&A) deals in hospital sector jumped to a record 155 percent at Rs 7,615 crore (US$ 1.09 billion) in FY19.

The Government of India has approved the continuation of National Health Mission with a budget of Rs 34,115 crore (US$ 4.88 billion) under Union Budget 2020-21. National Nutrition Mission is aimed to reduce the level of stunting by 2 per cent, under-nutrition by 2 per cent, anaemia by 3 per cent and low birth babies by 2 per cent ever year. The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (PMJAY), the largest Government funded healthcare program targeting more than 500 million beneficiaries, has been allocated Rs 6,429 core (US$ 919.87 million) under Union Budget 2020-21. As of November 2019, nearly 63.7 lakh people received free treatment under PMJAY.

Under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), allocation of Rs 3,000 crore (US$ 429.25 million) has been made under Union Budget 2020-21. Intensified Mission Indradhanush (IMI) 2.0 was launched by the Ministry of Health and Family Welfare from December 2019 to March 2020.

Under Union Budget 2020-21, Rs 65,012 crore (US$ 9.30 billion) and Rs 2,100 crore (US$ 300.47 million) has been allocated to the Ministry of Health and Family Welfare and the Department of Health Research, respectively.

The Government’s expenditure on the health sector has grown to 1.6 per cent of the GDP (Gross Domestic Product) in FY20 from 1.3 per cent in FY16. The Government is planning to increase its public health spending to 2.5 per cent of the country's GDP by 2025. Healthcare’s share of GDP is expected to rise by 19.7 per cent by 2027.

During April 2000–March 2020, Foreign Direct Investment (FDI) inflow in drugs and pharmaceuticals sector stood at US$ 16.50 billion.

Indian Healthcare Industry Report (August, 2020)
Download PDF Download PDF  (Size: 388.39 KB )

Click to access the Healthcare Industry Archived Report

Healthcare India

Healthcare Clusters
Healthcare Clusters in India

Posters

Brand India Pharma

OPEN YOUR EYES

With over 2.5 million operations performed and 20 million patients treated in the last 30 years,Aravind Eye Care System is the largest eye care provid...

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

Agri Export Policy - Towards smoother trade, wider global presence

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_logo-ibef1.jpg Indian packaging industry riding on the e-commerce wave
IBEF, Knowledge Centre

Packaging plays a pivotal role in consumers’ experience with respect to the brand and the overall purchasing experience. There are four major functions of packaging...

author_logo-ibef1.jpg MSMEs in India – Pad for the next economic leap
IBEF, Knowledge Centre

India has approximately 6.33 crore micro, small and medium enterprises (MSMEs). The number of registered MSMEs grew 18.5% YoY to 25.13 lakh units in 2020, from 21.21 lakh...

author_logo-ibef1.jpg INDIA'S OTT MARKET: WITNESSING A RISE IN NUMBER OF PAID SUBSCRIBERS
IBEF, Knowledge Centre

With enhanced networks, stronger internet connectivity and multimedia service-capable mobiles, the presence of Indian subscribers on over-the-top (OTT) platforms is incre...

author_logo-ibef1.jpg COVID-19: Opportunities for Start-ups
IBEF, Knowledge Centre

India has an ambitious plan to create a US$ 5 trillion economy by 2025. To achieve this goal, the country is focussing on knowledge economy-led development. Knowledge-dri...

author_logo-ibef1.jpg Indian Railways – Net Zero Carbon Emitter by 2030
IBEF, Knowledge Centre

As a first step on the pathway towards low-carbon economic growth, India has set ambitious targets for both reducing carbon emissions and deploying more clean energy. As ...

author_logo-ibef1.jpg An analysis of export preparedness Index by NITI Aayog
IBEF, Knowledge Centre

India is a vast and geographically diverse country with 28 States and 8 Union Territories (UT). India plans to become a US$ 5 trillion economy by 2024 and th...

ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password