The Indian Healthcare Sector Is Ripe For Expansion And Significant Growth
India, one of the biggest emerging markets, is currently an important destination for foreign direct investment (FDI). The healthcare sector as an industry is expanding rapidly in India and is expected to grow at a CAGR of 15 percent and will reach around USD 280 billion by 2020. Foreign investors are playing a significant role in the development of the hospital and diagnostic sector. According to recent research, hospitals and diagnostic centres attracted FDI of USD 3,133.81 million. Below are the opportunities for foreign companies in Indian healthcare sector.
There is tremendous demand for tertiary care hospitals and speciality hospitals in India. Most healthcare players have been setting up additional facilities to cater to critical care or super-speciality healthcare and some leading hospital players are aggressively raising funds for their expansion or accepting large capital injections.
The healthcare sector in India, especially hospital services, is dominated by the private sector. Recently, Fortis Healthcare Ltd. accepted the proposal from Malaysia’s IHH Healthcare Berhad to invest INR 4,000 crores in the Indian Hospital Chain.
“The proposals represent an opportunity for IHH to further expand its growing footprint in India, given India’s tremendous growth potential with the rising demand for quality private healthcare.” said, IHH.
Medical Devices and Equipments
Medical device includes any instrument, apparatus, appliance, implant, material, etc. Medical devices are intended to be used for examination and providing information for medical or diagnostic purposes. Investment in the medical equipment manufacturing sector is one of the most attractive areas for foreign companies. This sector has seen a significant flow of foreign investments over the past few years. The medical equipment manufacturing industry is expected to grow in tandem with the hospital sector, which is expected to grow to USD 60 billion.
Diagnostic centres are proving to be a lucrative business/investment opportunity for foreign companies. These centres have expanded their service to include all kinds of diagnostic services including cardiology and neurology.
Technology Driven Services
A significantly low presence of doctors in rural and semi-urban areas has led to limited access to proper healthcare facilities for the people there. Tele-medicine and e-Healthcare are considered to be some solutions to this lack of access. Tele-radiology has emerged very fast with an increasing number of foreign hospitals active in this space. Many hospitals have adopted the foreign partnership route to render these services.