Healthcare

March 2024
For updated information, please visit [Link]
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Recent Trends and Strategies 10

Growth Drivers 18

Opportunities 32

Key Industry Contacts 35

Appendix 37

2
Executive summary

2. IMPRESSIVE GROWTH PROSPECTS 3. STRONG FUNDAMENTALS AND

• The Indian Healthcare industry continued its healthy growth in COST ADVANTAGE
2022 and reached a value of US$ 372 billion driven by both the
• Rising income levels, an ageing population, growing health
private sector and the government.
awareness and a changing attitude towards preventive healthcare is
• As of December 13, 2023, more than 2.20 billion COVID-19 expected to boost healthcare services demand in the future.
vaccine doses have been administered across the country.
• The low cost of medical services has resulted in a rise in the
• The Indian hospital sector, valued at US$ 95.86 billion in FY21, country’s medical tourism, attracting patients from across the world.
is expected to reach US$ 221.50 billion by FY27, growing at a Moreover, India has emerged as a hub for R&D activities for
CAGR of 18.24%. international players due to its relatively low cost of clinical research.

1. FOURTH-LARGEST EMPLOYER
• India climbed to the 63rd rank 4. FAVOURABLE
among 190 countries in the World
Bank’s ‘Ease of Doing Business’ INVESTMENT ENVIRONMENT
rankings in 2020. • Conducive policies for encouraging FDI, tax
• The World Bank’s Logistics benefits, and favourable Government policies
Performance Index (LPI) 2023 coupled with promising growth prospects have
has ranked India at 38th position helped the industry attract private equity (PE),
(out of 139 economies), recording venture capitals (VCs) and foreign players.

•
an improvement of 6 positions.
As of 2024, the Indian healthcare
2 3
sector is one of India’s largest
employers as it employs a total of
7.5 million people. Progress in
telemedicine, virtual assistants,
and data analytics is expected to
1 4
create 2.7-3.5 million new tech
jobs.

Source: Business Standard, Ministry of External Affairs, Ministry of External Affairs (Investment and Technology Promotion Division), ASSOCHAM-RNCOS joint paper, Lancet Study

3
Advantage India

4
Advantage India

2. ATTRACTIVE OPPORTUNITIES 3. POLICY AND GOVERNMENT SUPPORT

• India’s public expenditure on healthcare touched 2.1 % • The Government aims to develop India as a global healthcare hub.
of GDP in FY23 and 2.2% in FY22, against 1.6% in • Public health surveillance in India will further strengthen the health
FY21, as per the Economic Survey 2022-23. systems.
• Two vaccines (Bharat Biotech's Covaxin and Oxford- • In the Interim Union Budget 2024-25, the government allocated Rs.
AstraZeneca’s Covishield manufactured by the Serum 90,659 crore (US$ 10.93 billion) to the Ministry of Health and
Institute of India) were instrumental in medically Family Welfare (MoHFW).
safeguarding the Indian population and those of 100+
• In March 2021, the Parliament passed the National Commission for
countries against COVID-19.
Allied & Healthcare Professions Bill 2021, which aims to create a
body that will regulate and maintain educational and service
1. STRONG DEMAND standards for healthcare professionals.
4. RISING
• Rising income, greater health
awareness, lifestyle diseases and
MANPOWER
increasing access to insurance will • Availability of a large pool of well-
contribute to growth. trained medical professionals in
• The healthcare sector, as of 2024,
is one of India’s largest employers, 2 3 •
the country.
The number of allopathic doctors
employing a total of 7.5 million with recognised medical
people. qualifications (under the I.M.C Act)
• A recent research report predicts registered with state medical
that the integration of Artificial
Intelligence (AI) within the Indian
1 4
councils/national medical council
increased to 1.3 million in
healthcare sector will create nearly November 2021, from 0.83 million
3 million new jobs by 2028. in 2010.

Source: KPMG, Deloitte, Hospital Market – India by Research on India, Frost and Sullivan, LSI Financial Services, ‘Report on Healthcare, Telemedicine and Medical Tourism in India’- ASA
and Associates LLP, Indian Journal of Public Health

5
MARKET OVERVIEW AND TRENDS

6
The healthcare market functions through five segments

Government hospitals – It includes healthcare centres, district hospitals and

general hospitals.
Hospitals

Private hospitals – It includes nursing homes and mid-tier and top-tier

private hospitals.

It includes manufacturing, extraction, processing, purification and packaging

Pharmaceutical
of chemical materials for use as medications for humans or animals.

It comprises businesses and laboratories that offer analytical or diagnostic

Healthcare Diagnostics
services, including body fluid analysis.

It includes establishments primarily manufacturing medical equipment and

Medical equipment
and supplies supplies, e.g. surgical, dental, orthopaedic, ophthalmologic, laboratory
instruments, etc.

It includes health insurance and medical reimbursement facility, covering an

Medical insurance
individual’s hospitalisation expenses incurred due to sickness.

Telemedicine has enormous potential in meeting the challenges of

Telemedicine healthcare delivery to rural and remote areas besides several other
applications in education, training and management in health sector.

Source: Hospital Market – India by Research on India

7
Strong growth in healthcare expenditure over the years

▪ Healthcare has become one of India's largest sectors, both in terms Healthcare
Visakhapatnam
Sectorport
Growth
traffic
Trend
(million
(US$tonnes)
billion)
of revenue and employment. The industry is growing at a
tremendous pace owing to its strengthening coverage, service and
400 CAGR: 22.52%
increasing expenditure by public as well private players.

▪ The Indian healthcare market enjoyed a robust Compound Annual

372
350
Growth Rate (CAGR) of 22.52% between 2016 and 2022,
highlighting its rapid growth trajectory.
300
▪ The healthcare profit pools will grow at a 4% CAGR from US$ 654

280
billion in 2021 to US$ 790 billion in 2026. 250
▪ The total industry size is estimated to be at US$ 372 billion in 2022.
200
▪ The Indian healthcare market, which was valued at US$ 110 billion in
2016 is now projected to reach US$ 638 billion by 2025.
150

160
▪ The e-health market size is estimated to reach US$ 10.6 billion by
2025.
100

110
▪ Government of India approves a Rs. 64,000 crore (US$ 7.7 billion)
project for establishing 22 AI Institutes of Precision Medicine: This 50
government-funded initiative aims to leverage artificial intelligence
for advanced diagnostics and personalized healthcare, significantly
0
impacting the sector.

2016

2017

2020

2022
Source: Frost and Sullivan, LSI Financial Services, Deloitte

8
Per capita healthcare expenditure has risen at a fast pace

▪ This is due to rising income, easier access to high-quality healthcare Government

Visakhapatnam
Healthcare
portExpenditure
traffic (million
astonnes)
a % of GDP
facilities and greater awareness of personal health and hygiene.

▪ Greater penetration of health insurance aided the rise in healthcare

spending, a trend likely to intensify in the coming decade. 2.6
2.5
▪ Economic prosperity is driving the improvement in affordability for
generic drugs in the market. 2.2
▪ The budgeted spending on the health sector by the federal and state
governments was 2.1% of Gross Domestic Production (GDP) in 1.8
FY23 and 2.2% in FY22, up from 1.6% in FY21. The Government is
1.6
planning to increase public health spending to 2.5% of the country's
GDP by 2025. 1.4 1.4
1.3 1.3
1.2 1.2

Note: * - Forecast
Source: World Bank, Press Information Bureau

9
Recent Trends and Strategies

10
Healthcare infrastructure has risen at a fast pace

Number of Medical Colleges Number of Doctors

800
13,50,000
700 757
600 654 13,00,000
13,01,319 13,08,009
500 595
541 562
529 12,50,000
400 462 476
412
300 12,00,000 12,55,786
200
100 11,50,000
0
11,00,000 11,54,686
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
(as of
Feb 10,50,000
2024) 2018 2020 2021 2022

▪ India’s medical educational infrastructure has grown rapidly in the last few decades.
▪ By FY22, Indian healthcare infrastructure is expected to reach US$ 349.1 billion.
▪ The Indian healthcare market, which was valued at US$ 86 billion in 2016 is now projected to reach US$ 638 billion by 2025.
▪ The Government of India's 2024-25 interim budget proposes expanding medical colleges using existing hospitals, building a stronger foundation
for future healthcare professionals.
• The number of allopathic doctors, with recognised medical qualifications (under the I.M.C Act), registered with state medical councils/national
medical councils increased to 1.3 million in June 2022, from 0.83 million in 2010.
▪ As per information provided to the Lok Sabha by the Minister of Health & Family Welfare, Dr. Bharati Pravin Pawar, the doctor population ratio in
the country is 1:834, assuming 80% availability of 12.68 lakh registered allopathic doctors and 5.65 lakh AYUSH doctors.
▪ Multinational healthcare company Abbott has committed to converting 75 Primary Health Centres (PHCs) to Health and Wellness Centres
(HWCs) in nine Indian States, in collaboration with Americares India Foundation, a nonprofit organization dedicated to relief and development in
the field of health. This will benefit over 2.5 million people from under-resourced communities every year.

Source: National Health Profile, News Articles

11
Notable trends in the Indian healthcare sector … (1/4)

1
Shift from communicable to lifestyle diseases
• With increasing urbanisation and problems related to modern-day living in urban settings, currently about 50% of spending on in-patient beds is
for lifestyle diseases – this has increased the demand for specialised care. In India, lifestyle diseases have replaced traditional health
problems.
• Most lifestyle diseases are caused by high cholesterol, high blood pressure, obesity, poor diet and alcohol.

2
Expansion to Tier II and Tier III cities
• Vaatsalya Healthcare is one of the first hospital chains to start focusing on tier II and tier III cities for expansion.
• There have been a total of six AIIMS facilities in Rishikesh, Bhubaneswar and Bhopal. Moreover, there are proposed AIIMS setups in J&K
(Awantipora), Haryana (Rewari), Bihar (Darbangha), and Tamil Nadu (Madurai).
• To encourage the private sector to establish hospitals in these cities, the Government has relaxed taxes on these hospitals for the first five years.

3
Emergence of telemedicine
• Telemedicine is a fast-emerging sector in India. Virtual care - constituting teleconsult, telepathology, teleradiology and e-pharmacy - is
experiencing a stimulus in India. Major hospitals (Apollo, AIIMS, Narayana Hrudayalaya) have adopted telemedicine services and entered into
a number of PPPs.
• In September 2020, according to a study (survey of consumers, doctors and stakeholders from pharma companies and global EY research) by
EY, in collaboration with the Indian Pharmaceutical Alliance, the domestic telemedicine market is expected to reach US$ 5.5 billion by 2025.
• By March 25, 2022, the Health Ministry’s eSanjeevani telemedicine service crossed 3 crore tele-consultations. Moreover, eSanjeevani
telemedicine set a new record by completing over 1.7 lakhs consultations in a single day.

Note: PPP is Public – Private Partnerships

Source: IRDA, CII, Grant Thornton, Gartner, Technopak, News Articles

12
Notable trends in the Indian healthcare sector … (2/4)
4
Rising adoption of artificial intelligence (AI)
• AI expenditure in India is expected to reach US$ 11.78 billion by 2025 and add US$ 1 trillion to India’s economy by 2035. The AI in Healthcare
Market is projected to grow from US$ 14.6 Billion in 2023 to US$ 102.7 Billion by 2028.
• Rising adoption of AI-based applications has enabled people to talk directly to doctors, and physicians, and get expertise for the best
treatment.
• It is also capable of solving problems of patients, doctors, and hospitals, as well as the overall healthcare industry.

5
Introduction of digital vaccine delivery platform
• In December 2020, a new COVID-19 vaccine delivery digital platform called ‘CoWIN’ was prepared to deliver vaccines. As a
beneficiary management tool with different modules, this user-friendly mobile app for recording vaccine data is in the process of
establishing the ‘Healthcare Workers’ database, which is in an advanced stage across all states/UTs.
• In July 2021, India made its COVID-19 vaccination platform, CoWIN, open source for all countries. Almost 76 countries have
displayed interest in leveraging the CoWIN platform to manage their national COVID-19 vaccination drives.

6
Increasing penetration of health insurance
• Approximately 514 million people across India were covered under health insurance schemes in 2021, which merely covers 37% of the people
in the country.
• In FY21, gross healthcare insurance stood at 29.5% of the overall gross direct premium income by non-life insurers segment.
• Health insurance is gaining momentum in India. Gross direct premium income underwritten by health insurance companies grew 13.3% YoY in
FY21 to Rs. 58,572.46 crore (US$ 7.9 billion).
• In June 2021, the government announced that the ‘Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for Health Workers
Fighting COVID-19’, which was launched in March 2020, has been extended for one more year. The insurance scheme provides
comprehensive personal accident cover of Rs. 50 lakh (US$ 68,189.65) to all healthcare providers, including community health workers and
private health workers. It was drafted by the government for the care of COVID-19 patients and those who may have come in direct contact
with COVID-19 patients and were at risk of being infected by the virus. The scheme is being implemented through New India Assurance
Company (NIACL).
Source: News Articles

13
Notable trends in the Indian healthcare sector … (3/4)

7
Focus on universal immunization programmes (UIP)
• Under the Government of India’s Universal Immunization Programme, close to 2.67 crore children and 2.9 crore pregnant women are
immunized free of cost against 12 vaccine-preventable diseases annually.

• Universal Immunization Programme (UIP) is one of the largest public health programs targeting close to 2.67 crore newborns and 2.9 crore
pregnant women annually.

8
Technological initiatives
• Digital Health Knowledge Resources, Electronic Medical Record, Mobile Healthcare, Electronic Health Record, Hospital Information System,
PRACTO, technology-enabled care, telemedicine and Hospital Management Information Systems are some of the technologies gaining wide
acceptance in the sector.
• During the Global Digital Health Summit 2023 on September 1, 2023:
1. The Health Parliament introduced the Digital Doctor Leadership Maturity Model (DDLMM), offering clinicians worldwide a systematic guide to
seamlessly integrate technology and measure its impact on clinical processes and outcomes.
2. 'Mission SCALE' was launched to address the critical role of digital health startups, aiming to accelerate their growth by bringing together global
leaders, startup founders, and investors to empower these startups in effecting positive change within the healthcare sector.
• In December 2021, Eka Care became the first CoWIN-approved organization in India, through which users could book their vaccination slot,
download their certificate and even create their Health IDs.

Source: News Articles

14
Notable trends in the Indian healthcare sector … (4/4)

9
Point of care treatment
• It encompasses any tests that are performed at or near a patient and at the site where care or treatment is provided. Results are typically
available relatively quickly so that they can be acted upon without delay.
• The most common point-of-care tests include blood glucose monitoring, home pregnancy tests, tests for hemoglobin, fecal occult blood, rapid
strep, as well as Prothrombin Time/ International Normalized Ratio (PT/INR) for people on the anticoagulant warfarin.
• It further helps to alleviate emergency room overcrowding by reducing the time it takes to treat people and thus shortens their stays.

Source: News Articles

15
Covid-19 fightback from the Indian healthcare sector

Export of the COVID-19 COVID-19 Vaccination

vaccine and drugs • As of December 13, 2023, more than 2.20
• As of July 15, 2023, India has exported billion COVID-19 vaccine doses have
30.12 crore vaccine doses. been administered across the country.
• Minister of Health & Family Welfare, • In March 2022, Hyderabad-based
Chemicals and Fertilizers, Mr. pharmaceutical company Biological E
Mansukh Mandaviya, stated that 96 applied for emergency use authorisation
countries have agreed to mutual (EUA) for its COVID-19 vaccine Corbevax
recognition of COVID-19 vaccination for the 5-12 years age group.
certificates with India. • In January 2022, Phase 3 trials
commenced of India's first intranasal
vaccine against COVID-19 which is being
developed by Bharat Biotech, in
conjunction with the Washington
University School of Medicine in St Louis,
the US.

Collaboration
• In April 2023, Cognizant and Microsoft will work together to build an integration roadmap between Cognizant’s
TriZetto healthcare products with Microsoft Cloud for healthcare.
• In September 2021, Biocon Biologics Limited, a subsidiary of Biocon, announced a strategic alliance with
Serum Institute Life Sciences, a subsidiary of Serum Institute of India (SII). The alliance is expected to
strengthen India's position as a global vaccine and biologics manufacturing powerhouse.
• In September 2021, the Telangana government, in a joint initiative with the World Economic Forum, NITI
Aayog and HealthNet Global (Apollo Hospitals), launched the ‘Medicine from the Sky’ project. The project will
pave the way for drone delivery of life-saving medicines and jabs in far-flung regions of the country.

Notes: R&D - Research and Development

Source: News Articles

16
Strategies adopted

2. DIFFERENTIATION AND DIVERSIFIED 3. CO-DEVELOPMENT

BUSINESS APPROACH ▪ Key players in the industry are focusing on start-ups for co-developing
innovative healthcare solutions. In December 2020, a cohort of six
▪ Players in the industry are trying to differentiate
health-tech start-ups - AarogyaAI, BrainSightAI, Fluid AI, InMed
themselves by providing multiple healthcare services
Prognostics, Wellthy Therapeutics and Onward Assist - were selected by
under one roof.
the India Edison Accelerator. This start-up partnership programme
▪ Offering a range of healthcare and wellness services focused on Indian mentors, creating strategic partners to co-develop
under a single brand has become a trend. Patients and healthcare solutions.
healthcare services-seekers find it convenient. Demand
of such arrangements boosts the healthcare sector. 4. MERGERS & ACQUISITIONS (M&A)
▪ In the Indian pharmaceutical industry, there
1. COST LEADERSHIP were 17 M&A deals announced in Q2 2023,
worth a total value of US$ 287.2 million.
▪ Private players in the industry are
making their supply chains efficient and ▪ The healthcare and pharmaceutical sector in
leveraging economies of scale to reduce India had M&A activity worth US$ 5 billion in
costs. One such example is Narayan 2023.
Hrudayalaya (NH), where healthcare is ▪ In September 2023, Nirma a diversified
provided at an affordable cost. NH Indian conglomerate, acquired a 75% stake
reduces costs by high procurement of in Glenmark Life Sciences, a pharmaceutical
medical supplies, high-volume by high- company, for US$ 689 million. This
capacity utilization, staff productivity and transaction marked one of the biggest Indian
good human capital management (i.e.,
training). 2 3
healthcare M&A deals of the year.
▪ In May 2023, Temasek, a Singaporean
investment company, invested US$ 2 billion
in Manipal Health Enterprises, a leading
healthcare provider in India, highlighting the
growing interest in the Asian healthcare
1 4 market.

Source: News Articles

17
Growth Drivers

18
Indian healthcare sector is poised to grow

2. POLICY SUPPORT 3. FOCUS

▪ Encouraging policies for FDI in the private sector. • Expanding R&D and distribution facilities in
▪ Reduction in customs duty and other taxes on life-saving India.
equipment. • Public-private partnerships facilitate
▪ NRHM allocated US$ 10 billion for healthcare facilities. collaborative research aimed at addressing
▪ The WHO and G20 India presidency launched the Global specific medical challenges in India.
Initiative on Digital Health (GIDH) at the G20 Summit's • The government provides financial grants, tax
Health Minister’s Meeting, aiming to leverage digital health breaks, and subsidies to encourage research
for universal coverage and Sustainable Development Goals and development in pharmaceuticals.
by 2030.

1. GROWING DEMAND
• Rising income and affordability. 2 3 4. M&A
• Growing elderly population, changing
disease patterns. • Rising FDI and private sector
• Rise in medical tourism. investment.
• Better awareness of wellness, • Lucrative M&A opportunities.
preventive care and diagnosis. • Foreign players setting up

1 4
R&D centres and hospitals in
India.

Note: FDI – Foreign Direct Investment, M&A - Mergers and Acquisitions NRHM - National Rural Health Mission
Source: Ministry of Health and Family Welfare, Government of India

19
Rising income, ageing population to be key healthcare
demand driver

▪ Rising income means a steady growth in the ability to access GDP per Capita at Current Prices (US$)
healthcare and related services.

▪ Per capita GDP of India is expected to reach US$ 3,277.28 in 2024 4,000
from US$ 1,761.63 in 2016.

▪ Moreover, changing demographics will also contribute to greater 3,500

healthcare spending. This is likely to continue as the size of the

3,374.80
elderly population is set to rise from the current 98.9 million to about 3,000

3,101.76
168 million by 2026.

2,847.56
▪ Per capita GDP at current prices in February 2024, stood at US$ 2,500

2,612.45
2,850.40.

2,391.87
2,238.13
2,000

2,050.16
1,974.38
1,957.97

1,913.22
1,714.28
1,500

1,000

500

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026
Source: International Monetary Fund, World Economic Outlook Database, April 2018

20
Medical tourism: a new growth factor for India’s healthcare
sector
▪ Presence of world-class hospitals and skilled medical professionals has strengthened India’s position as a preferred destination for medical
tourism.
▪ With US$ 5-6 billion size of Medical value travel (MVT) and 500000 International patients annually, India is among the global leader
destinations for international patients seeking advanced treatment.
▪ Superior quality healthcare coupled with low treatment costs in comparison to other countries is benefitting Indian medical tourism, and in
turn, has enhanced prospects for the Indian healthcare market.
▪ Treatment for major surgeries in India costs approximately 20% of that in developed countries.
▪ India also attracts medical tourists from developing nations due to the lack of advanced medical facilities in many of these countries.
▪ Indian medical tourism market was valued at US$ 7.69 billion in 2024 and is expected to reach US$ 14.31 billion by 2029.
▪ According to India Tourism Statistics , around 634,561 foreign tourists came for medical treatment in India in 2023, which was nearly 6.87%
of the total international tourists who visited the nation.
▪ India has been ranked 10th in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association.
▪ Yoga, meditation, ayurveda, allopathy and other traditional methods of treatment are major service offerings that attract medical tourists from
European nations and the Middle East to India.
▪ The Government of India liberalised its policy by providing 100% FDI in the AYUSH sector for the wellness and medical tourism segment.
▪ On February 25, 2024, Prime Minister Mr. Narendra Modi inaugurated five new All India Institute of Medical Sciences (AIIMS) across
different states. These AIIMS facilities, situated in Rajkot (Gujarat), Bathinda (Punjab), Raebareli (Uttar Pradesh), Kalyani (West Bengal),
and Mangalagiri (Andhra Pradesh), signify a transformative step towards bolstering tertiary healthcare infrastructure.
▪ With a vision to promote Medical and Wellness Tourism in India, the Ministry of Tourism established the ‘National Medical & Wellness
Tourism Board’ in July 2021. The board will operate as an umbrella organisation with the goal of promoting all types of medical tourism.
Yoga and Ayurveda tourism would also be promoted, along with any alternative form of medicine under the Indian system of medicine that is
covered under AYUSH.
▪ The Ministry of Tourism has also published a draft of the ‘National Strategy and Roadmap for Medical and Wellness Tourism’, which aims at
providing governance and developmental framework for medical and wellness tourism.

Source: Ministry of Health, RNCOS, KPMG, Deloitte, Medical Tourism Association, LSI Financial Services, Apollo Investor Presentation, News Article

21
Re-emergence of traditional medical care

1. Market size and 5. Recent Developments

services offered •
5 The Government of India approved the
continuation of the ‘National Health Mission’
• The overall Ayush industry in the country
is worth over US$ 50 billion.- in 2024.
1 with a budget of Rs. 36,785 crore (US$ 4.44
billion) under the Union Budget 2023-24.
• Ayurveda and Unani medicines consist • In November 2022, six pharmaceutical
of more than 90% of plant-based companies were chosen by the Indian Council
formulations. of Medical Research to produce monkeypox
• The sector has broadened its offerings vaccines - Serum Institute of India, Biological
and now includes services on diet and
nutrition, yoga, herbal medicine, humour
2 4 E, Dr. Reddy's Laboratories, Hester
Bioscience Ltd., Indian Immunologicals Ltd.,
therapy and spa. and Reliance Life Sciences.
•
2. Leading brands
3 In July 2022, the Indian Council of Medical
Research (ICMR) released standard treatment
guidelines for 51 common illnesses across 11
and players specialities to assist doctors, particularly in
3. Developing infrastructure rural regions, in diagnosing, treating, or
• Many big players such as Apollo, • In January 2021, the PM Cares fund allocated Rs. referring patients in time for improved
VLCC and Manipal Group are 201.58 crore (US$ 27.55 million) for the construction treatment outcomes.
setting up wellness centres of 162 additional dedicated pressure swing
across India with traditional adsorption medical oxygen generation plants inside
healthcare remedies as the focus the country's public health facilities. The AI in 4. Notable trends
of their offerings. Healthcare Market is projected to grow from US$ • The traditional medical sector is developing a
14.6 billion in 2023 to US$ 102.7 billion by 2028. traditional knowledge digital library to prevent
• In July 2021, the Union Cabinet approved companies from claiming patents on such
continuation of the National Ayush Mission, remedies. There is a growing interest from
responsible for the development of traditional numerous PE firms in the traditional
medicines in India, as a centrally sponsored scheme healthcare sector in India.
until 2026.
Notes: AYUSH - Ayurveda, Yoga, Naturopathy, Unani, Siddha and Homoeopathy, MoU – Memorandum of Understanding
Source: Ministry of Health, Make in India, RNCOS, KPMG, Ayurveda Industry Market Size, Strength and Way Forward report by
Confederation of Indian Industry (CII), News Articles

22
Policy support and government initiatives… (1/8)

1
Pradhan Mantri Jan Arogya Yojana (PMJAY)
▪ The government announced Rs. 90,659 crore (US$ 10.93 billion) outlay for the healthcare sector in the Interim Union Budget 2024-2025
to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary and tertiary care, healthcare systems,
and institutions for detection and cure of new & emerging diseases. As of October 2023, a total of 26 crore Ayushman cards have been
created. To prevent, detect, and deter healthcare fraud and to ensure that eligible beneficiaries receive adequate treatment, the
Government of India is using Artificial Intelligence (AI) and Machine Learning (ML).

2
Tax incentives
▪ All healthcare education and training services are exempted from service tax.
▪ Increase in tax holiday under section 80-IB for private healthcare providers in non-metros for minimum of 50 bedded hospitals.
▪ 250% deduction for approved expenditure incurred on operating technology enables healthcare services such as telemedicine and
remote radiology.
▪ Artificial heart is exempted from basic custom duty of 5%.
▪ Income tax exemption for 15 years for domestically manufactured medical technology products.
▪ The benefit of section 80-IB has been extended to new hospitals with 100 beds or more that are set up in rural areas. Such hospitals are
entitled to 100% deduction on profits for 5 years.

3
Credit incentives for healthcare infrastructure
▪ The Indian government is planning to introduce a credit incentive programme worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s
healthcare infrastructure. The programme will allow firms to leverage the fund to expand hospital capacity or medical supplies with the
government acting as a guarantor and strengthen COVID-19-related health infrastructure in smaller towns.

Source: News Articles

23
Policy support and government initiatives… (2/8)

4
National Nutrition Mission
▪ The programme is planning to reduce the level of stunting by 2%, under-nutrition 2%, anaemia by 3% and low birth babies by 2% every
year.
▪ PoshanAbhiyan is a Centrally Sponsored Scheme with the implementation of the scheme being done by States/UTs. To ensure that all
Anganwadi Centres are equipped with Smartphones and Growth Monitoring devices (GMDs) such as Infantometer, Stadiometers, and
Weighing Scale for Mothers and Infant, the Ministry has released revised guidelines for technical specifications and replacement of
GMDs by the States.
▪ Over 100 million people are expected to be benefited by this programme – all states and districts will be covered within the programme.
▪ In the Union Budget 2021-22, the government announced its plans to launch ‘Mission Poshan 2.0’ to merge ‘Supplementary Nutrition
Programme’ with ‘Poshan Abhiyan’ (Nutrition Mission) in order to improve nutritional outcomes across 112 aspirational districts.

5
Liberalised Pricing & Accelerated National COVID-19 Vaccination Strategy
▪ The Liberalised Pricing & Accelerated National COVID-19 Vaccination Strategy was implemented on May 1, 2021. As part of the
strategy, every month, 50% of the total vaccine doses that have been cleared by the Central Drugs Laboratory (CDL) will be procured by
the Government of India (GOI), which will provide those vaccines to the State Governments at no cost. In addition, the remaining 50% of
the vaccine doses will be available for direct procurement by the State Governments and private hospitals.

6
National Health Mission (NHS)
▪ The Government of India approved continuation of ‘National Health Mission’ with a budget of Rs. 38,183 crore (US$ 4.60 billion) under
the Interim Union Budget 2024-25.

Source: News Articles

24
Policy support and government initiatives… (3/8)

7
Incentives in the medical travel industry
▪ Incentives and tax holidays are being offered to hospitals and dispensaries providing health travel facilities. Senior citizens above 80
years of age will be allowed deduction of US$ 491 towards medical expenditure if they are not covered under health insurance.

8
Universal health
▪ The Union Budget 2021 announced the launch of ‘Jal Jeevan Mission’ (Urban) to achieve universal health. The mission is aimed at
universal supply of water to all 4,378 urban local bodies, with 2.86 crore household tap connections, and management of liquid waste in
500 AMRUT cities. It will be executed with an outlay of Rs. 2,87,000 crore (US$ 39.41 billion) over five years.

9
Tele-medicine initiatives
▪ State Telemedicine Network (STN): The states and union territories have been provided support under the National Health Mission
(NHM) under Program Implementation Plan (PIP) to create a reliable, ubiquitous and high-speed network backbone. eSanjeevani
telemedicine service of Union Health Ministry has crossed 3 crore tele-consultations.
▪ The eSanjeevani platform has experienced remarkable growth, with its user base increasing more than 2.5 times within a single year.
Impressively, the app has garnered an astonishing three million downloads, with approximately 10% of its users being senior citizens.
• The eSanjeevani telemedicine programme run by the Health Ministry has performed 3 crore teleconsultations as of March 25, 2022.
Additionally, eSanjeevani telemedicine accomplished more than 1.7 lakh consultations in a single day, breaking a previous record.

Source: News Articles

25
Policy support and government initiatives… (4/8)

10
Bilateral ties
▪ On January 18, 2024, the Union Cabinet was briefed on a Memorandum of Understanding signed between CDSCO, India, and ARCSA,
Ecuador, fostering cooperation in medical product regulation, enhancing international coordination, and potentially boosting India's
pharmaceutical exports.
▪ On November 8, 2023, India and Netherlands inked a significant Memorandum of Intent in The Hague, aiming to bolster cooperation on
medical product regulation, thereby elevating the quality of healthcare services for both nations.

11
Single window system
▪ The Drug Controller General of India (DCGI) has proposed to set up a single window system for start-ups and innovators seeking
approvals, consents, and information regarding regulatory requirement.
▪ .

12
Medical institutions
▪ On February 25, 2024, Prime Minister Mr. Narendra Modi inaugurated five new All India Institute of Medical Sciences (AIIMS) across
different states. These AIIMS facilities, situated in Rajkot (Gujarat), Bathinda (Punjab), Raebareli (Uttar Pradesh), Kalyani (West Bengal),
and Mangalagiri (Andhra Pradesh), signify a transformative step towards bolstering tertiary healthcare infrastructure.
▪ In May 2022, the Union Government approved grants for five new medical colleges in Gujarat with a grant of Rs. 190 crore (US$ 23.78
million) each. These colleges will come up in Navsari, Porbandar, Rajpipla, Godhra and Morbi.

Source: Union Budget 2020-21, News Articles

26
Policy support and government initiatives… (5/8)

13
Interim Union Budget 2024–25
▪ Under the Interim Union Budget 2024-25, the Ministry of Health and Family Welfare has been allocated Rs. 90,659 crore (US$ 10.93
billion), an increase of 1.69% compared to Rs. 89,155 crore (US$ 10.75 billion) in 2023-24.

▪ Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 2,400 crore (US$ 0.29 billion)

▪ Human Resources for Health and Medical Education was allotted Rs. 5,016 crore (US$ 0.60 billion)

▪ National Health Mission was allotted Rs. 38,183 crore (US$ 4.60 billion).

▪ Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 7,500 crore (US$ 0.90 billion)

14
Establishment of health system capacities at airports under the Aatmanirbhar
Swasth Bharat Yojana
▪ In the Union Budget 2021, the government proposed enhancement of the country's potential for health systems, which included entry
points for aviation. It planned to strengthen the public health units at 32 airports under the Aatmanirbhar Swasth Bharat Yojana scheme.
This programme would promote smooth movement of pharmaceuticals through India and other parts of the world by air.

Source: Union Budget 2023–24

27
Policy support and government initiatives… (6/8)

15
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY)
▪ In the Interim Union Budget 2024-25, Rs. 2,400 crore (US$ 289 million) was allocated to the scheme.

▪ The Government of India will use this money to boost the medical education infrastructure of the country and set up AIIMS across the
country.

16
‘Vision 2035: Public Health Surveillance in India’
▪ To make the public health surveillance system in India more flexible and predictive to strengthen action preparedness at all levels.
▪ A citizen-friendly public health surveillance system, supported by a consumer feedback process, would ensure individual privacy and
confidentiality.
▪ To improve data-sharing system for effective disease control between the center and states.
▪ India aims to provide regional and international leadership in managing events of global concern, which constitute a public health
emergency.

17
PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM)
▪ In the Interim Union Budget 2024-25, Rs. 4,107.68 crore (US$ 495 million) was allocated to the newly announced PM-ABHIM to
strengthen India’s health infrastructure and improve the country’s primary, secondary and tertiary care services.

Source: News Articles, Press Information Bureau

28
Policy support and government initiatives… (7/8)

18
Ayushman Bharat
▪ Ayushman Bharat scheme was launched to ensure universal health coverage and provide financial risk protection, assuring quality and
affordable essential health services to all individuals.
▪ As of February 25, 2024, there are 1,67,891 Ayushman Arogya Mandir in the country since its launch in 2018.
▪ On November 26, 2023, the Union Government decided to rename the existing Ayushman Bharat Health and Wellness Centres (AB-
HWCs) as ‘Ayushman Arogya Mandir’ with the tagline ‘Arogyam Parmam Dhanam’, aiming to bolster healthcare branding.
▪ In August 2022, Edelweiss General Insurance partnered with the Ministry of Health, Government of India to help Indians generate their
Ayushman Bharat Health Account (ABHA) number.
▪ In July 2022, the World Bank approved a US$ 1 billion loan towards India's Pradhan Mantri-Ayushman Bharat Health Infrastructure
Mission.
▪ September 2021, Prime Minister Mr. Narendra Modi launched the Ayushman Bharat Digital Mission. The mission will connect the digital
health solutions of hospitals across the country with each other. Under this, every citizen will now get a digital health ID and their health
record will be digitally protected.

19
Digital India Initiative
▪ As of May 2023, 1,138 e-Hospitals were established across India as part of the central government's ‘Digital India’ initiative.

Source: News Articles, Press Information Bureau

29
Policy support and government initiatives… (8/8)

20
Free Covid Vaccine For Healthcare Workers
▪ In the Phase 1 of COVID-19 vaccination drive, free vaccines were provided across the country to the prioritised beneficiaries that
included 10 million healthcare and 20 million frontline workers.

21
Intensified Mission Indradhanush (IMI) 3.0
▪ In March 2021, various states and UTs started implementation of the ‘Intensified Mission Indradhanush 3.0’ - a campaign aimed to reach
those children and pregnant women who were missed out or have been left out of the routine immunisation programme due to the
COVID-19 pandemic. This is aimed to accelerate the full immunisation of children and pregnant women through a mission mode
intervention.

22
National Digital Health Mission (NDHM)
▪ On August 15, 2020, Prime Minister Mr. Narendra Modi launched the National Digital Health Mission (NDHM) programme, which was
developed to provide the necessary support system for integrated digital health infrastructure of the country.
▪ As of May 2021, 11.9 lakh Health IDs have been generated and 3,106 doctors and 1,490 facilities have registered on the platform.

Source: News Articles, Press Information Bureau

30
FDI inflow

▪ 100% FDI is allowed under the automatic route for greenfield Cumulative FDI inflows from April 2000-December 2023
Visakhapatnam port traffic (million tonnes)
projects. (US$ billion)
▪ For brownfield project investments, up to 100% FDI is permitted
under the government route.
3.26
▪ Demand growth, cost advantages and policy support have been
instrumental in attracting FDI.

▪ Between April 2000-December 2023, the FDI inflow for the drugs
and pharmaceuticals sector stood at US$ 22.37 billion.
9.81
▪ Inflows in sectors such as hospitals and diagnostic centres and US$ 35.44 billion
medical and surgical appliances stood at US$ 9.81 billion and US$
3.26 billion, respectively, between April 2000-December 2023.
22.37
▪ In May 2023, Temasek invested US$ 2 billion in Manipal Health
Enterprises, a leading healthcare provider in India, highlighting the
growing interest in the Asian healthcare market.

Drug and Pharmaceuticals

Hospital and Diagnostic Centers

Medical and Surgical Appliances

Note: FDI – Foreign Direct Investment

Source: Department of Industrial Policy and Promotion

31
Opportunities

32
Opportunities in healthcare

2. RESEARCH 3. HEALTH-TECH
▪ India currently holds the fourth position in
1. HEALTHCARE ▪ On January 6, 2021, Dr. Harsh Vardhan, the
Minister for Health & Family Welfare, attracting VC funding to the health-tech sector,
INFRASTRUCTURE released INDIA REPORT on Longitudinal with investments of US$ 4.4 billion between 2016-
Ageing Study of India (LASI) Wave-1. He 21, with US$ 1.9 billion invested in 2021 alone.
• Additional three million beds will stated that this report will be used to further
be needed for India to achieve the improve and expand the reach of the ▪ In November 2022, diabetes management app
target of 3 beds per 1,000 people ‘National Elderly Health Care’ network and BeatO raised US$ 33 million in its Series B
by 2025. Also, India will have one contribute to the implementation of a funding round led by impact investor Lightrock
doctor to every 800 patients by spectrum of preventive and healthcare
2030. India.
services for the elderly and vulnerable
• Additional 1.54 million doctors and population. ▪ Startup HealthifyMe, with a total user base of 30
2.4 million nurses will be required million people, is adding half a million new users
to meet the growing demand for every month and crossed US$ 40 million ARR in
healthcare. 58,000 job January 2022.
opportunities are expected to be
generated in the healthcare sector
by 2025.
4. MEDICAL DEVICES
• Over US$ 500 billion is expected
to be spent on
infrastructure by 2030.
medical
2 3 ▪ The medical devices market is
expected to reach US$ 11 billion
• Over the years, India has made in 2022, backed by rising
strategic interventions in the geriatric population, growth in
National Health Mission and the medical tourism and declining
national disease control
programmes to ensure quality and 1 4
cost of medical services.

affordable healthcare for all.

Source: News Articles

33
Opportunities in health insurance

▪ A growing middle-class, coupled with rising burden of new diseases, Health Insurance Premium Collection (US$ billion)
are boosting the demand for health insurance coverage. With
increasing demand for affordable and quality healthcare, penetration 10.00
of health insurance is poised to expand in the coming years.
9.00 9.21
▪ According to data released by Just Dial Consumer Insights, the
demand for health insurance in India increased by 321% after COVID,
8.00
with Star Health, Max Bupa, Aditya Birla, HDFC Ergo, and Acko 8.18
7.90
dominating the top five searched and desired insurance brands.
7.00 7.45
▪ During April 2021-January 2022, health insurance portfolio of insurers 7.04
increased by 25.9%, with rise in retail health policies of 17.3% and 6.58
6.00
group policies of 30.1%.
5.90
▪ In FY24 as of February 2024, premiums underwritten by health 5.00
insurance companies grew to Rs. 98,716.73 crore (US$ 8.18 billion).
4.65
The health segment has a 37.55% share in the total gross written 4.00
premiums earned in the country. 3.82
▪ The number of policies issued to women in FY21 stood at 93 lakh, 3.00
with one out of every three life insurance policies in FY21 sold to a
woman. 2.00

▪ By leveraging strategic partnerships, WhatsApp plans to debut

opportunities for health insurance and micro-pension products in India. 1.00
WhatsApp plans to collaborate for the Sachet-Health Insurance
Programme with the State Bank of India (SBI) General and plans to 0.00
FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24*
work with HDFC Pension to introduce the National Pension Scheme.

Source: GIC, News Article

*- April-November

34
Key Industry Contacts

35
Key industry contacts

Agency Contact Information

I.M.A. House
Indraprastha Marg,
New Delhi - 110 002, India
Indian Medical Association
Telephone: 91 11 2337 0009, 2337 8819
Fax: 91 11 2337 9470, 2337 9178
Website: [Link]
E-mail: hsg@[Link]

Model Residency, 605,

Bapurao Jagtap Marg,
The Federation of Obstetric
Jacob Circle, Mahalaxmi East,
and Gynaecological Societies
Mumbai - 400 011, India
of India
Fax: 23021383
Website: [Link]
E-mail: fogsi2007@[Link]

36
Appendix

37
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ EPA: Externally Aided Projects

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March)

▪ So FY10 implies April 2009 to March 2010

▪ GOI: Government of India

▪ ICT: Information and Communications Technology

▪ IMF: International Monetary Fund

▪ Rs.: Indian Rupee

▪ M and A: Mergers and Acquisitions

▪ NHRM: National Rural Health Mission

▪ PPP: Public Private Partnerships

▪ R and D: Research and Development

▪ US$ : US dollar

▪ WHO: World Health Statistics

▪ Where applicable, numbers have been rounded off to the nearest whole number

38
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33

2006-07 45.29 2007 41.29

2007-08 40.24 2008 43.42

2008-09 45.91 2009 48.35

2009-10 47.42 2010 45.74

2010-11 45.58 2011 46.67

2011-12 47.95 2012 53.49

2012-13 54.45 2013 58.63

2013-14 60.50 2014 61.03

2014-15 61.15 2015 64.15

2015-16 65.46 2016 67.21

2016-17 67.09 2017 65.12

2017-18 64.45 2018 68.36

2018-19 2019 69.89

69.89
2020 74.18
2019-20 70.49
2021 73.93
2020-21 73.20 2022 79.82
2021-22 74.42 2023 82.61
2022-23 78.60 2024* 83.09

Note: *- Until February 2024

Source: Foreign Exchange Dealers’ Association of India

39
Disclaimer

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of
IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for
professional advice.

IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume
any liability, damages or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

IBEF shall not be liable for any special, direct, indirect or consequential damages that may arise due to any act or omission on the part of the user
due to any reliance placed or guidance taken from any portion of this presentation.

40