NITI Aayog has released a report highlighting the range of investment opportunities in various segments of India’s healthcare sector, including medical devices and equipment, hospitals, health insurance, home healthcare, telemedicine, and medical value travel.
Key Points
- The report titled ‘Investment Opportunities in India’s Healthcare Sector’ was released by NITI Aayog CEO Amitabh Kant, Member Dr. VK Paul, and Additional Secretary Dr. Rakesh Sarwal.
- As per the report, since 2016 India’s healthcare industry has been growing at a Compound Annual Growth Rate of around 22%.
- At this rate, the industry is expected to reach USD 372 billion in the year 2022. Healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment.
- In the first section, this report has provided an overview of the country’s healthcare sector, including insights about the prevailing business and investment climate, its employment generation potential as well as the overarching policy landscape.
- The second section of the report highlights the key drivers of growth for the sector and the third section points out the enabling policies and investment opportunities in 7 key segments health insurance, hospitals and infrastructure, medical devices, pharmaceuticals and biotechnology, medical tourism, home healthcare as well as telemedicine and other technology-related health services.
- In the hospital segment, the expansion of private players to tier-2 and tier-3 locations, beyond metropolitan cities, offers an attractive investment opportunity.
- With respect to pharmaceuticals, India can boost domestic manufacturing, supported by recent Government schemes with performance-linked incentives, as part of the Aatmanirbhar Bharat initiative.
- In the medical devices and equipment segment, expansion of diagnostic and pathology centres as well as miniaturized diagnostics have a high potential for growth.
Further, medical value travel, especially wellness tourism, has bright prospects, given India’s inherent strengths in alternative systems of medicine. Technology advancements like Artificial Intelligence (AI), mobile technologies, wearables along with Internet of Things, also offer numerous avenues for investment.
