Indian Healthcare Sector is one of the largest and fastest growing sectors in terms of revenue and employment. It comprises of Hospitals, clinical trials, outsourcing, medical devices, telemedicine, medical tourism, health insurance and medical equipment. Highly talented human resource with technological advancement enables India to provide cross border services, such as telemedicine, telesurgery and telediagnosis. Moreover, India has also emerged as a strong outsource destination for service such as medical transcription, coding and billing, back office support etc.
India holds strong position in advanced healthcare services such as organ transplants, cardiovascular procedures, cancer treatments, etc. with high success rate. High growth of Healthcare sector is the result of government initiatives, high Private and foreign investments which has promoted the Infrastructure for Healthcare Services in the country. Indian Hospital Industry stood at US$ 61.79 billion during the FY2017 and is expected to reach US$ 132.84 billion by 2022. Globally, Health care spending is projected to increase at an annual rate of 4.1% in 2017-2021, up from just 1.3% in 2012-2016. India is expected to rank amongst the top three healthcare markets worldwide in terms of incremental growth by 2020.
Wellness services in India
Wellness Industry has continued to emerge from a niche lifestyle concept into a mainstream commodity with high growth prospects. Wellness industry is estimated to be worth over $3.72 trillion, representing more than 5% of all global economic output (Global Wellness Industry Report 2018).
As per the recent estimates of Ernst & Young, Indian wellness industry is estimated to grow at a CAGR of nearly 12% for the next 5 years and is expected to reach Rs 1.5 trillion by 2020. Rise in disposable incomes, changing lifestyle, etc. are some important factors driving the growth of wellness services.
Indian Healthcare sector is expected to reach Rs 8.6 trillion (US$ 133.44 billion) by 2022. The sectors has registered strong growth and stood at US $160 billion in 2017 and is expected to touch US$372 billion by 2022 with a CAGR of 16.28% during 2008-22.
Indian Hospital Industry stood at US$ 61.79 billion (Rs 4 trillion) during FY17 and is expected to increase to US$ 132.84 billion by FY22 at a CAGR of 16-17%.
Healthcare Sector Growth Trends (US$ Billion)
Source: Frost and Sullivan, LSI Financial Services, Deloitte, Aranca Research
Indian healthcare sector stood as the fourth largest employer, employing approx. 319,780 people in FY2017. The sector is expected to generate 40 million jobs in India by 2020. Indian healthcare sector, is expected to record a threefold rise to US$ 372 billion in 2022 from US$ 110 billion in 2016. As per the Economic Survey 2017-18, net sales of healthcare services have been growing at an average of 12.1%.
Source: Economic Survey 2017-18