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OVERVIEW | OPPORTUNITIES
Healthcare
OVERVIEW
SIZE
- The Indian Healthcare market is estimated at about US$34 billion (FY 2006)
- The industry is expected to grow at 15% p.a., to reach US$79 billion by
FY 2012
- The large domestic market complemented by the inflow of medical tourists
- Medical tourists have increased almost 20-fold from 10,000 in 2000 to about 1,80,000–2,00,000 in 2006
STRUCTURE
- The industry is fragmented with a large number of independent, privately run hospital and healthcare centres
- Private sector corporate entities like the Apollo Hospitals, Wockhardt Hospitals and Fortis Healthcare have aggressive expansion plans
- Indian hospitals are gaining reputation globally as “quality” service providers
- Many Indian hospitals have secured accreditation from the British Standards Institute and Joint Commission on Accreditation of Healthcare Organisations
- NHS, UK has indicated India to be a preferred destination for surgery
POLICY
- 100% FDI is permitted for all health-related services under the automatic route
- Infrastructure status has been accorded to hospitals
- Lower tariffs and higher depreciation on medical equipment
- Income tax exemption for 5 years to hospitals in rural areas, Tier II and
Tier III cities
Top Private Healthcare Providers in India
| Player |
FY07 Revenues (US$ million) |
Number
of Hospitals |
| Apollo Hospitals |
225 |
41 |
| Wockhardt Hospitals |
59 |
12 |
| Fortis Healthcare |
31 |
11 |
| Manipal Group |
NA |
20 |
Source: Company websites, Capitaline Database
OPPORTUNITY
 |
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Healthcare delivery
is one of the largest service
sector industry in India |
World-class healthcare
facilities are available in India |
OUTLOOK
- The industry is expected to grow to US$79 billion by 2012
- Medical tourism is expected to become a US$2.2 billion industry
by 2012
POTENTIAL
- High-growth in the domestic market arising from:
- Increasing health awareness: share in total private consumption expected to increase by 10%
- Increasing penetration of health insurance
- Rapid growth in private sector companies owning and managing hospitals
- High-growth in medical tourism
- Cost of comparable treatment is on average 1/8th to 1/5th of those in western countries.
- Opportunities exist in multiple segments along the value chain
- Service providers: curative and preventive in primary, secondary and tertiary care
- Diagnostics services: imaging and pathology labs
- Infrastructure: hospitals, diagnostic centres
- Health insurance: less than 10% of the population is covered by health insurance. The medical insurance premium income is expected to grow to US$3.8 billion by 2012
- * 44% growth in health insurance during 2006-2007
- Healthcare BPO: medical billing, disease coding, forms processing and claims adjudication
- Training: large opportunity for training doctors, managers, nurses and technicians
- Investment opportunity of over US$25 billion by 2010
Source: IBEF, Indian Healthcare Foundation,
India Country Commercial Guide 2002
For additional information:
Ministry of Health and Family Welfare (http://mohfw.nic.in),
Indian Medical Association (http://www.imanational.com)
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