Healthcare is the India’s largest sector in terms of Revenue as well as Employment. Healthcare covers Hospitals, Medical devices, Clinical Trials, Outsourcing, Health Insurance and Medical Equipment. Indian Healthcare delivers its services in Public and Private sector. The public sector has the limited access in secondary and tertiary care institute in few cities and always focus to provide the primary healthcare facilities in rural areas. The private sector has provide the services majority of their services in metro cities, tier 1 and tier 2 cities.
The overall healthcare market of India is about USD 100 Billion which growing at a CAGR of 22.9 %. With this pace the Healthcare sector is expected to grow 1.5 times, which is to reach USD 280 Billion by 2020. The basic reason behind the growth is the increase in Digital Adoption.
The healthcare delivery, which includes hospitals, nursing homes and diagnostics centers and Pharmaceuticals constitutes about 65% of the overall market.
70% of the population in India is living in rural area which is supposed to be potential market for the Healthcare India. The healthcare facilities are improve in rural area. With a huge investment in healthcare sector, still there is an opportunity. There is a requirement of 600,000 to 700,000 beds over the next five years and the investment of USD 25-30 billion is required. The average investment size by private equity funds in healthcare chains has already increased o USD 20-30 million from USD 5-15 million.
Indian Medical tourism industry is reached to USD 3 Billion per annum, with the tourist arrivals estimated at 230000. The medical tourism industry will double by 2018 and it is expected to reach USD 16 Billion in 2018.