Introduction
Healthcare is a costly sector to enter, and running your own firm is even more so, but you can make it work if you have the proper idea. If you’re thinking of starting your own healthcare company, there are a few things you should do first. While there are exceptions, determining what form of business will help your community and sell your healthcare product or service best is the first step in figuring out how to establish a business in healthcare. This includes determining who your target market is and what value they will receive from acquiring your product or service over similar items or services offered by other firms.
Healthcare Industry Business opportunities in India
By 2020, the health-care sector is anticipated to be worth $3 trillion. This means that there are a plethora of options for entrepreneurs who want to start a business and make money in one of the most profitable industries in history. However, if you’re considering starting a healthcare firm, you’ll need specific skill sets as well as understanding of a variety of elements that will be vital to your success. From occupations inside hospitals and medical offices to enterprises that service healthcare workers and customers, there are a variety of options for business ownership in healthcare. If you’re thinking about beginning a small business in the healthcare industry, hospitals and medical offices are a good place to start. Hospitality is one of those fields where hard work pays well. To be in close proximity to your customers you can capitalize on this proximity by creating a coffee shop or restaurant inside a hospital or medical office building.
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Growth of healthcare industry
The Indian healthcare sector is one of the fastest expanding in the world, contributing significantly to both revenue and jobs. Hospitals, medical devices, health insurance, telemedicine, clinical trials, medical tourism, and medical equipment are all included in this category. For the past 24 months, healthcare has been at the centre of attention. This shift in attention to healthcare infrastructure caused not only the country, but the entire world, to wake up and understand that there is a huge opportunity for the country outside of the pharmaceutical sector. The hospital industry in India, which accounts for 80% of the entire healthcare market, is seeing strong demand from both international and domestic investors. From $61.8 billion in 2017, the hospital business is predicted to grow to $132 billion by 2023. Expanding at a 16-17 percent compound annual growth rate (CAGR). By 2020, the Indian medical tourism sector is expected to increase from $3 billion to $7-8 billion. The diagnostics sector in India is valued at $4 billion at the moment. In this section, the organized sector accounts for over a quarter of the total (15 percent in labs and 10 percent in radiology).
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Market size of Healthcare industry
Total healthcare spending in India is expected to reach US$280 billion by 2020, growing at a CAGR of 16.8 percent. It is now valued at $93 billion, with a forecast of $200 billion by 2017. The industry has been consistently rising since 2010-11, when it expanded by 5%. By the end of FY17, the market is expected to have grown to Rs. 2.20 lakh crores (US$36 billion) from Rs. 1.55 lakh crores (US$27 billion) on March 31, 2016. To put things in perspective, that’s more than twice what we already spend on education and defence. According to PwC, India’s health-care spending would increase from $65 billion in 2012 to $280 billion in 2020. According to the World’s reports, According to the World Health Organization (WHO), the health-care sector accounts for 3% of our country’s GDP and is expected to rise to 4% by 2025.
Working towards building a Healthier India
Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment are all part of India’s healthcare industry. Due to expanding coverage, services, and increased spending by both public and private entities, the business is growing at a breakneck speed.
The healthcare market in India is being driven by a growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to rising healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration, and government initiatives such as e-health, as well as tax benefits and incentives.
In 2020, the Indian healthtech business was estimated to be worth $1.9 billion. It is predicted to reach $ 5 billion by 2023, with a CGAR of 39%.
- The Indian digital healthcare industry was worth INR 116.61 billion in 2018, and is expected to rise to INR 485.43 billion by 2024, with a compound annual growth rate (CAGR) of 27.41 percent between 2019 and 2024.
- The diagnostics industry is predicted to expand at a CAGR of 20.4 percent from $5 billion in 2012 to $32 billion by 2022.
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- The in-patient healthcare market is predicted to increase at a CAGR of 13% from 2015 to 20.
- Telemedicine is India’s most promising health area, with revenues estimated to reach $5.4 billion by 2025, expanding at a 31 percent compound annual growth rate (CAGR).
- The National Digital Health Blueprint has the potential to unlock approximately $200 billion in incremental economic value for India’s healthcare industry over the next ten years.
- India boasts the world’s largest government-sponsored health insurance programme (Ayushman Bharat).
- India’s overall investment in medical education: during 2014, INR 17,691.08 crore has been invested in 157 new recognised medical colleges.
- The Ayush sector has grown significantly from $3 billion in 2014 to $18 billion in 2022. Greenfield developments are eligible for 100% FDI under the automatic route. Under the government method, up to 100 percent FDI can be invested in brownfield projects.
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Industry Scenario
- By 2022, India’s healthcare industry is expected to be worth $372 billion dollars.
- Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment are all part of India’s healthcare industry. The healthcare sector is expanding at a breakneck speed, thanks to expanded coverage, services, and increased spending by both public and private entities.
- India’s hospital business, which accounts for 80% of the country’s entire healthcare market, is seeing strong demand from both international and domestic investors. The hospital industry is predicted to increase at a CAGR of 16-17 percent from $61.8 billion in 2017 to $132 billion in 2023.
- By 2020, the Indian medical tourism sector is predicted to rise from $3 billion to $7-8 billion.
- India’s hospital business is currently valued at $4 billion. In this section, the organised sector has a nearly 25% stake (15 percent in labs and 10 percent in radiology).
- The primary care industry is worth $13 billion right now. In this situation, the organised sector’s part is basically non-existent.
- In India, 70,000 Ayushman Bharat facilities are open, with the goal of providing primary health care services to people closer to their homes.
- The AYUSH market grew by 17% from 2014 to 2016, to $18.1 billion, and the business is expected to increase to $23.3 billion by 2022.
- Health insurance accounts for 20% of non-life insurance revenue, making it the second-largest portfolio. In FY20, gross direct premium income covered by health insurance increased 17.16% year on year to $6.87 billion.
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GROWTH DRIVERS
Robotic process automation (RPA)
RPA can help enhance the efficiency of the healthcare staff while also lowering costs and increasing value.
Shifting Disease Burden
In India, non-communicable diseases (NCDs) account for half of the disease burden and 60% of all deaths.
Rise in Medical Tourism
Medical tourism is growing at a rate of 22-25 percent in India due to the relatively low cost of medical care. It contributes more than $2 billion to India’s healthcare market. Medical tourism has increased demand for healthcare and medical devices.
Policy Support & Incentives
Greenfield and brownfield projects are authorised 100 percent FDI, and initiatives to remedy the unfavourable tariff structure are being implemented, as well as a single-window clearance e-portal to improve EoDB.
Atmanirbhar Bharat Abhiyaan – Self Reliant India
A specific economic and comprehensive package worth INR 20 lakh crores is being offered to India in order to promote manufacturing.
Life Expectancy
By 2022, life expectancy would have surpassed 70 years, necessitating greater healthcare services.
Insurance Coverage
20% of Indians are covered; this number is anticipated to rise as incomes and urbanisation increase.
Emergence of telemedicine
The rise of telemedicine, as well as government programmes such as e-health, combined with tax perks and incentives, are propelling the Indian healthcare business.
Medical Infrastructure
By 2024, more than $200 billion will have been spent on medical infrastructure.
INDUSTRY TRENDS
Telemedicine
Telemedicine services have been embraced by major hospitals, and a number of PPPs have been formed. The Indian telemedicine market is predicted to grow at a CAGR of 20% from 2016 to 2020, reaching $32 million.
Artificial intelligence
AI for keeping track of medical records and delivering the best treatment to patients at the proper time
Mobile & Wearable Devices
With around 2 million devices sold in 2017, India is poised to become a significant market for wearables, with 129 million units predicted by 2030.
Robotic Surgeries
The surgical robotics market in India is expected to grow at a CAGR of 20% from 2017 to 2025, reaching $350 million.
Health Insurance
The Rashtriya Swastha Bima Yojana (RSBY), which is led by the government, is planned to cover about 380 million people by FY20.
Government Ministry/ Department
Industry Association
- Association of Diagnostics Manufacturers of India (ADMI)
- Association of Indian Medical Device Industry (AIMED)
- Confederation of Indian Industry (CII)
- Federation of Indian Chambers of Commerce & Industry
- Indian Medical Association (IMA)
- Medical Technology Association of India (MTaI)
- The Associated Chambers of Commerce and Industry of India
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