According to an NITI Aayog report, India's healthcare industry has been rising at a compound annual growth rate of about 22% since 2016 and is projected to hit $372 billion in 2022 at this rate.
According to the report released by NITI Aayog's Member, Health, V.K. Paul, CEO Amitabh Kant, and Additional Secretary Rakesh Sarwal, healthcare has been one of the largest sectors of the Indian economy in terms of both revenue and employment.
The study describes the numerous investment prospects in India's healthcare market, such as hospitals, medical instruments and supplies, health services, telemedicine, home healthcare, and medical benefit travel.
“An ageing population, an increasing middle class, a rising proportion of lifestyle disorders, a greater focus on public-private collaborations, and rapid penetration of digital technology are all driving growth in the Indian healthcare sector,” said Kant in the report.
“The Covid-19 pandemic has provided India with both challenges and opportunities. Both of these aspects converge to make India's healthcare sector an enticing investment prospect,” he added.
The first section of the report offers an analysis of India's healthcare industry, providing insights into its job generation capacity, the current market and investment environment, and the overall policy landscape.
The second section focuses on the sector's main growth factors, while the third section delves further into the supporting policies and investment prospects in seven key segments: hospitals and facilities, health insurance, pharmaceuticals and biotechnology, medical equipment, medical tourism, home healthcare, and telemedicine and other technology-related health services.
The penetration of private players into tier-2 and tier-3 areas outside of metropolitan cities, it argues, provides a convincing investment potential in the hospital sector.
India will improve domestic pharmaceutical manufacturing, according to the study, thanks to recent government schemes with performance-linked incentives as part of the Aatmanirbhar Bharat initiative.
The expansion of diagnostic and pathology centers, as well as miniaturized diagnostics, have high growth potential in the medical devices and equipment market, according to the report.
Furthermore, given India's inherent strengths in alternative systems of medicine, medical value travel, especially wellness tourism, has bright prospects, said the report.
“Artificial intelligence (AI), wearables, and other emerging devices, as well as the Internet of Things, present a plethora of investment opportunities.”