Potential

 High growth domestic market arising from:

Increasing health awareness: Share in total private consumption expenditure has increased from 3.5% (1993-94) to 5.3% (2000-01).

Expected to increase further

Increasing penetration of Health insurance

Rapid growth in private sector companies owning and managing hospitals

High growth in medical tourism

Cost of advanced surgeries in India is about 10% of that in USA

Opportunities exist in multiple segments along the value chain

Service Providers: Curative and preventive in primary, secondary and tertiary care

Diagnostics Services: Imaging and pathology labs

Infrastructure: Hospitals, Diagnostic centres

Health Insurance: Only 30-40 million Indians have Health Insurance; expected to rise to 160 million by 2010.

100% growth in Health Insurance in the last two years

Healthcare BPO: Medical billing, disease coding, forms processing and claims adjudication

Training: Large opportunity for training doctors, managers, nurses and technicians

Investment opportunity of over $25 billion in the next 5 years

At the current pace of growth, medical tourism, currently pegged at US$ 350 million, has the potential to grow into a US$ 2 billion industry by 2012.

  • Healthcare spending in the country will double over the next 10 years. Private healthcare will form a large chunk of this spending, rising from Rs 690 billion (US$ 15 billion) to Rs 1,560 billion (US$ 34 billion) in 2012. This figure could rise by an additional Rs 390 billion (US$ 8.4 billion) if health insurance cover is available to the rich and the middle class.
  • The voluntary health insurance market, which is estimated at Rs 4 billion (US$ 86.3 million) currently, is growing fast. Industry estimates put the figure at Rs 130 billion (US$ 2.8 billion) by 2005.
  • With the expected increase in the pharmaceutical market, the total healthcare market could rise from Rs 1,030 billion (US$ 22.2 billion) currently (5.2 per cent of GDP) to Rs 2,320 billion (US$ 50 billion)-Rs 3,200 billion (US$ 69 billion) (6.2-8.5 per cent of GDP) by 2012.