Healthcare has become one of India’s largest sectors - both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.

Indian healthcare delivery system is categorised into two major components - public and private. The Government, i.e. public healthcare system comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary and quaternary care institutions with a major concentration in metros, tier I and tier II cities.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.

Market Size

Deloitte Touche Tohmatsu India has predicted that with increased digital adoption, the Indian North India's Healthcare Market, which is worth around US$ 100 billion, will likely grow at a CAGR of 23 per cent to US$ 280 billion by 2020.

The revenue of India’s corporate healthcare sector is estimated to grow at 15 per cent in FY 2017-18.*

India is experiencing 22-25 per cent growth in medical tourism and the industry is expected to double its size from present (April 2017) US$ 3 billion to US$ 6 billion by 2018. Medical tourist arrivals in India increased more than 50 per cent to 200,000 in 2016 from 130,000 in 2015.

The Healthcare Information Technology (IT) market is valued at US$ 1 billion currently (April 2016) and is expected to grow 1.5 times by 2020.

Over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms^.

There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source.

A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of alternative medicine and treatment to the people.

Punjab (5.5), Himachal Pradesh (4.5) and Andhra Pradesh (5.4) have the highest doctor density per 10,000 people in rural areas

Punjab have 39370 registered medical doctors alone.

“The private sector [in health] over the years has grown very strong. In government sector we have less manpower and if we have doctors, they are less qualified,” said Dr. Inderjeet. “These days, patients choose private hospitals to survive, only those who don’t have any option go to government hospitals.”

Dr Rajesh Kumar, head, Department of Community Medicine, PGI says the report reflects how health expenditure is pushing people into poverty. “The government’s contribution ro healthcare should be increased three-fold,” he said, “to make public healthcare more effective.”

The state government said the focus is on rural and poor pockets of urban areas. “A lot has been done over the last few years to improve the health services, but certainly there is scope to do more and we are working on it” said Vini Mahajan, Principal Secretary Health & Family Welfare Punjab. “Evidence is that the great heathcare need is in the rural areas and in poor pockets of urban areas, so special attention is given to these areas.”

  • Healthcare has become one of India's largest sectors both in terms of revenue & employment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well private players
  • During 2008-20, the market is expected to record a CAGR of 16.5 per cent
  • The total industry size is expected to touch USD160 billion by 2017 & USD280 billion by 2020
  • As per the Ministry of Health, development of 50 technologies has been targeted in the FY16, for the treatment of diseases like Cancer & TB
  • Government is emphasising on the eHealth initiatives such as Mother & Child Tracking System (MCTS) & Facilitation Centre (MCTFC)
  • Indian companies are entering into merger & acquisitions with domestic & foreign companies to drive growth & gain new markets.