Since 2016, the healthcare sector has grown at a CAGR of roughly 22%. In terms of revenue and employment, healthcare has become one of the most important sectors of the Indian economy. In 2015, the sector surpassed agriculture as the fifth-largest employment, directly employing 47 lakh people.
Niti Aayog has outlined a wide range of investment prospects in India's healthcare sector, advising investors to take advantage of the favourable environment to participate in the country's healthcare industry, which is estimated to grow to $372 billion by 2022.
Since 2016, the healthcare industry has grown at a compound annual growth rate (CAGR) of roughly 22%. In terms of revenue and employment, healthcare has become one of the most important sectors of the Indian economy. In 2015, the sector surpassed agriculture as the fifth-largest employment, directly employing 47 lakh people. The National Skill Development Corporation (NSDC) expects that healthcare would create 27 lakh new employment in India between 2017 and 22 – over 500,000 new jobs every year.
India's pharmaceutical business is currently worth $41 billion, but it is predicted to grow to $130 billion by 2030. By 2025, India's biotechnology market is predicted to have grown at a rate of roughly 30% per year, reaching $100 billion.
With the Aatmanirbhar Bharat project, India has the opportunity to promote domestic pharmaceutical manufacture, aided by recent government schemes with performance-linked incentives. Furthermore, patents worth $251 billion are set to expire internationally between 2018 and 2024, creating a profitable opportunity for the country's pharmaceutical sector.
The development of private firms into Tier-II and Tier-III cities in the hospital sector presents an appealing investment opportunity. According to Invest India's Investment Grid, the country's hospital/medical infrastructure sub-sector has around 600 investment opportunities totaling $32 billion (Rs 2.3 lakh crore).
Global and domestic investors are putting a lot of money into the healthcare industry. The hospital industry will benefit from the government's intentions to boost budgetary allocation for public health spending to 2.5 percent of GDP by 2025. Tertiary care hospitals and speciality hospitals, in particular, are in high demand.