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The Healthcare industry size is estimated to reach US$ 193.83 billion by 2020 and US$ 372 billion by 2022.

Indian Healthcare Industry Analysis

    Last updated on Oct, 11 2021

Indian healthcare sector is expected to reach US$ 193.83 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. In FY21, gross direct premium income underwritten by health insurance companies grew 13.3% YoY to Rs. 58,572.46 crore (US$ 7.9 billion). The health segment has a 29.5% share in the total gross written premiums earned in the country. In June 2021, gross written premiums of health insurance companies in the non-life insurance sector increased by 40% YoY (for the FY period up to June 2021) to Rs. 17,497.4 crore (US$ 2.36 billion), driven by rising demand for health insurance products amid the COVID-19 surge.

As of July 2021, the number medical colleges in India stood at 558.

The country had 393 Ayurveda and 221 homeopathy Government recognised colleges. As of April 2021, over 75,500 Health and Wellness Centres were operationalised in India.

The hospital industry size is estimated to touch US$ 193.83 billion by 2020 and US$ 372 billion by 2022.

As of February 2021, 420 e-Hospitals were established across India as part of the central government's ‘Digital India’ initiative.

By August 2021, the Health Ministry’s eSanjeevani telemedicine service crossed 9 million teleconsultations since its launch, enabling patient-to-doctor consultations, from the confines of their homes, and doctor-to-doctor consultations.

The Indian government is planning to introduce a credit incentive programme worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s healthcare infrastructure. The programme will allow firms to leverage the fund to expand hospital capacity or medical supplies with the government acting as a guarantor and strengthen COVID-19-related health infrastructure in smaller towns.

Budget 2021 highlights

  • India’s public expenditure on healthcare stood at 1.2% as a percentage of the GDP.
  • In the Union Budget 2021, investment in health infrastructure expanded 2.37x, or 137% YoY; the total health sector allocation for FY22 stood at Rs. 223,846 crore (US$ 30.70 billion).
  • The government announced Rs. 64,180 crore (US$ 8.80 billion) outlay for the healthcare sector over six years in the Union Budget 2021-22 to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary and tertiary care, healthcare systems and institutions for detection and cure of new & emerging diseases.
  • In Union Budget 2021-22, the government announced its plans to launch ‘Mission Poshan 2.0’ to merge ‘Supplementary Nutrition Programme’ with ‘Poshan Abhiyan’ (Nutrition Mission) in order to improve nutritional outcomes across 112 aspirational districts.
  • The Government of India approved continuation of ‘National Health Mission’ with a budget of Rs. 37,130 crore (US$ 5.10 billion) under the Union Budget 2021-22.
  • In the Union Budget 2021, the Ministry of AYUSH was allocated Rs. 2,970 crore (US$ 407.84 million), up from Rs. 2,122 crore (US$ 291.39 million).

Between April 2000 and March 2021, FDI inflows for drugs and pharmaceuticals sector stood at US$ 17.99 billion.

Indian Healthcare Industry Report (July, 2021)
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