Healthcare Industry

 It is set to reach $280 billion by the year 2020.

 The expenditure on healthcare is likely to expand at the CAGR of 17% over 2011-20.
 Changing demographics, rising income, improvement in health awareness, increase in
life related ailments, rising health insurance and increasing medical tourism will lead to
increased demand.
 Government is looking to make India as a global healthcare hub for which they have
reduced exercise and custom duty and exemption in GST.
 Healthcare sector has five segments which are Hospitals, Medical Equipment and
Supplies, Medical Insurance, Pharmaceuticals and Diagnostic.
 Private hospitals contribute 74% of total healthcare expenditure.
 Expected to achieve CAGR of 35% from 2014 to 2022. The total size is expected to be
$370 Billion by 2022.
 Private hospitals bed share is 40% of the total number of beds in the country.
 During April 2000 to March 2018, foreign direct investment (FDI) inflows for drugs and
pharmaceuticals sector stood at $15.72 billion and for hospital and diagnostic centers it
was $5.05 billion. For medical and surgical appliances the FDI inflow was $1.66 billion.
 Health insurance is gaining momentum and witnessed a growth at a CAGR of 19.43 per
cent during FY14-18. The Insurance industry recorded growth due to increasing
penetration of private players.
 Many companies offer health insurance coverage to employees, driving market
penetration of insurance companies. The increasing in healthcare cost and burden of
new diseases along with low government funding is raising demand for health insurance
coverage.
 In FY-18, the overall health insurance premium collected in India recorded at $5.90
billion, in FY-17 it was 4.78 billion and in FY-16 it was 4.08 Billion. The health segment
has 25.2 per cent share in gross direct premiums earned in the country.
 Increasing Medical tourism because the cost is very low as compared to the developed
countries.
 The government is encouraging the entry of International patients in India by providing
special medical visas and other initiatives to facilitate medical tourism in the country.
 The Indian medical tourism industry is expected to reach $6 billion by 2018 registering a
CAGR of 18.92 per cent for the period 2014-18.
 Medical devices market size, valued at $4 billion in 2016 and it is expected to reach $11
billion by 2022, on the back of declining cost of medical services and rising geriatric
population.
 The Union Health Ministry has draft rules on sale of drugs by e-pharmacies with an aim
to regulate online sale of medicines across India and provide patients accessibility to
genuine drugs from authentic online portals. The draft rules on 'sale of drugs by e-
pharmacy' state that no person will distribute or sell, stock, exhibit or offer for sale of
drugs through e-pharmacy portal unless registered.
 The government has unveiled a new National Health Protection Scheme under which
health coverage of upto Rs 5 lakh per family will be offered for secondary and tertiary
care hospitalization. The government will also establish 1.5 lakh Health and Wellness
centres under the Ayushman Bharat program. These centres will provide comprehensive
health care, including for non-communicable diseases and maternal and child health
services. The Budget has allocated Rs 1,200 crore for this flagship programme.
 Under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), in May 2018 the
Government of India approved financial outlay of Rs 14,832 crores for FY2017-18 to
FY2019-20, and Rs 1,103 crore for setting up All India Institute of Medical Sciences
(AIIMS) in Deoghar in the state of Jharkhand.
 The Ministry of Health and Family Welfare released Rs 4 crore to Centre for
Development of Advanced Computing (C-DAC), Pune for developing National Resource
Centre for HER Standards (NRCeS) from a total estimated cost of Rs 23.59 crore to
enable adaptation of notified EHR standards.
  The Union Cabinet approved setting up of National Nutrition Mission (NNM) with a
three year budget of Rs 85,217 crore to monitor, supervise, fix targets and guide the
nutrition related interventions across ministries.
 Healthcare sector showing great potential and is expected to perform well in coming
years on the back of consistent growth in medical tourism, increase in collection of
health insurance premium and increasing penetration of private players. With increasing
demand for affordable and quality healthcare, penetration of health insurance is poised
to grow exponentially in the coming years. As Government is focusing to increase
foreign customer bases, through offering healthcare services for cheaper costs
compared to the expense of the same services and treatments provided in developed
countries which can attract many foreign patients. Meanwhile, Indian healthcare sector
provides various opportunities to all the players involve in the healthcare space in every
segment. With the increase in the competition, businesses are looking to explore for the
latest dynamics and trends which will have positive impact on their business. Indian
healthcare space also provides vast opportunities in R&D as well as medical tourism. To
sum up, there are vast opportunities for investment in healthcare infrastructure in both
urban and rural India.

Hospital Industry
 The hospital segment in India stood at $61.79 Billion in 2017 and expected to increase at
a CAGR of 16-17% and is expected to reach $132 Billion by 2022.
 The demand for Hospital services is expected to grow over the coming years due to
increase in Life-related illnesses such as cardiac ailments, oncology, diabetes, etc.
 The Life-related illnesses or non-communicable diseases (NCDs) have been growing
rapidly in India over the last few years. India's burden of NCDs is daunting.
 The country accounts for nearly 1/5th of global NCD mortality, a remarkably high
proportion, which poses a substantial threat to its socio-economic development.
 About 50 per cent of spending in-patients beds account for lifestyle diseases due to
increasing urbanization and problems related to modern-day living in urban-settings.
 India is still not equipped for the tsunami of NCDs and the hospital segment will need to
prepare to overcome the requirements of such a large population.
 FDI in Hospital and diagnostic centers was $5.05 billion from April 2000 to March 2018.
 It is estimated that India will require 2.07 million more doctors by 2030 in order to achieve a
doctor-to-population ratio of 1:1,000.
 Over 2015-20, the In-Patient market is expected to grow at a CAGR of 13 per cent
 Over 2015-20, the Out-Patient market is expected to grow at CAGR of 10 per cent
 Over 2012-22, diagnostic market is expected to grow at a CAGR of 20.4 per cent to US$
32 billion from US$ 5 billion in 2012
 The benefit of section 10 (23 G) of the IT Act has been extended to financial institutions
that provide long term capital to hospitals with 100 beds or more.
 The benefit of section 80-IB has been extended to new hospitals with 100 beds or more
that are set up in rural areas; such hospitals are entitled to 100 per cent deduction on
profits for 5 years .
 Additional 3 million beds needed for India to achieve the target of 3 beds per 1,000
people by 2025