Investments in Healthcare and Hospital Industry in India

Healthcare has developed to be one of India’s most important industries, both in terms of income and jobs. Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment are all part of it. The sector is expanding at a rapid pace as a result of improved coverage, services, and increased spending by both public and private actors. Increased prevalence of lifestyle disorders, as well as the rising need for cheap healthcare delivery systems as healthcare expenses rise, are fueling the market growth in India.

 The Indian healthcare industry is predicted to triple, rising at a CAGR of 22% between 2016 and 2022 to reach US$ 372 billion in 2022, up from US$ 110 billion in 2016. The medical tourism industry in India was valued at $2.89 billion in 2020 and is predicted to grow to $13.42 billion by 2026. Gross direct premium income guaranteed by health insurance firms increased 13.3 percent year on year to Rs. 58,572.46 crores (US$ 7.9 billion) in FY21. The Medical Tourism Index (MTI) has rated India tenth for 2020-21. The introduction of Ayushman Bharat in 2018 created new opportunities for employment generation. Personnel will be needed, for example, under the National Digital Health Mission (NDHM), to digitize family records from the local to the facility level. The extension of PM-JAY, as well as a greater emphasis on enhancing health insurance coverage in general, will create additional employment.

Some of the top reasons for investing in the healthcare and hospital industry are:

• Home healthcare evolved as the greatest contender for allowing treatment outside of hospitals, particularly if traditional institutions were rendered unavailable due to the epidemic. Some of the primary drivers driving this industry are the country’s growing older population, growth in the frequency of lifestyle illnesses, and a greater need for tailored care at home. The inclusion of homestay and care for COVID-19 under the standard health insurance as of 2020 is a significant move that is likely to influence the future of home healthcare. According to statistics, the home healthcare business will be worth $21.3 billion by 2027.

• There are considerable and attractive investment prospects in India’s pharmaceutical business, which encompasses over-the-counter medications, vaccines, and contract manufacturing and research. When the pandemic was at its apex in the second wave, India showcased local production of products such as oxygen concentrators. With vaccines made in-house, the country reached a COVID immunization target of 100 million people in a very short period.

• Because of its relative cost efficiency and availability of skilled workers, India is a popular location for medical value travel. AI, ML, big data, and the internet of things are providing 24-hour access to care, even in the convenience of people’s homes. The Indian government presently allows up to 100 percent under the automated route for the healthcare sector and medical device production. Wearables, as well as the integration of robotics and block chain technologies in remote monitoring and other elements, have enormous growth potential.

• By 2025, the government intends to boost the budgeted allocation for public health spending to 2.5 percent. This will be advantageous given the high demand for tertiary care and specialized hospitals in particular. There is now a substantial patient-to-bed ratio, and the COVID-19 pandemic exposed this flaw. In the next 15 years, India is expected to require at least 2.2 million beds.

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