India’s healthcare sector expected to reach USD 372 bn in 2022
The Niti Aayog report titled ‘Investment Opportunities in India’s Healthcare Sector’ mentioned that the healthcare sector in the country has the potential to create 27 lakh jobs between 2017 and 2022.
According to the latest report released by Niti Aayog on March 30, 2021, healthcare has become one of the largest sectors of India and is expected to reach USD 372 billion in the year 2022.
The report by Niti Aayog outlined a range of investment opportunities in the healthcare sector of India across pharmaceuticals, hospitals, medical devices, areas of new-age technologies, and home healthcare solutions.
The report mentioned that the healthcare industry in India has been growing at a compound annual growth rate of around 22% since 2016 and at this rate, it has been expected to reach 372 billion dollars in 2022.
The report on Investment Opportunities in #India’s Healthcare Sector was released today by #NITIAayog Member Dr. VK Paul, CEO @amitabhk87, Additional Secretary Dr. Rakesh Sarwal, Policy Specialist @urvashi01 & Sr. Consultant @kmadangopal.— NITI Aayog (@NITIAayog) March 30, 2021
📖 Read, here: https://t.co/cQwZmnHCdY pic.twitter.com/OZLLEXKjgP
Report by Niti Aayog: key Highlights
• The Niti Aayog report titled ‘Investment Opportunities in India’s Healthcare Sector’ mentioned that the healthcare sector in the country has the potential to create 27 lakh jobs between 2017 and 2022. It means over 5 lakh new jobs every year.
• The FDI inflows in this sector in India have increased from USD 94 million in 2011 to USD 1,275 million in 2016.
• In the hospital segment in India, the expansion of the private hospitals to tier-II and tier-III locations has offered an attractive investment opportunity.
• The technology advancements such as wearables, artificial intelligence, and other mobile technologies have offered several avenues for investment in key segments.
Hospital industry in India:
The Indian hospital industry accounts for 80% of the total healthcare market. In 2016-2017, the hospital industry was valued at USD 61.79 billion and is now expected to reach USD 132 billion by the year 2023.
As per the latest report, around 65% of the hospital beds cater to almost 50% of the population which is centered in Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, West Bengal, Telangana, and Kerala.
While the other 50% of the population in the remaining states and UTs has access to only 35% of the hospital beds. The report suggests that there is a potential to grow hospital beds, by at least 30%, to ensure equitable access to healthcare for citizens all over India.
Healthcare industry perfect for investment:
According to Niti Aayog CEO Amitabh Kant, the pandemic has not only given challenges but has also provided several opportunities for India to grow and all these factors make the country’s healthcare industry perfect for investment.
While mentioning the home healthcare solutions in India, on the account of the rising elderly population, enhanced demand for personalized care, increase in chronic disease as well as emergency of nuclear family structures, home healthcare has tremendous potential for growth in the near future.