The Growing Indian Healthcare Industry
The healthcare industry in India is growing at a rapid pace and it is poised to become one of the dominant participants of the Indian economy. According to a Yes Bank and ASSOCHAM report, the Indian health care industry is estimated to grow at 23% p.a. to $77 billion by 2012 from the current $35 billion. The sector has grown at a rate of 9.3% from the year 2000 to 2009.
Of the sum, diagnostic and pathology services would account for $2.5 billion in 2012, more than double its estimated current size of $1billion. The growth in the segment is expected to be driven by consolidation in the industry and increasing insurance penetration among the country's population. Healthcare facilities, inclusive of public and private hospitals, the core sector, around which the healthcare sector is centered, would continue to contribute over 70% of the total sector and touch a figure of $54.7 billion by 2012
According McKinsey report, the Indian healthcare market is expected to grow at a rate of 10-12 percent p.a. This is being driven by a strong local demand and growing population. With average household consumption expected to increase by more than 7 per cent per annum, the annual healthcare expenditure is projected to grow at 10 per cent and also the number of insured is likely to jump from 100 million to 220 million. India's high population makes it an important player in this industry. According to the Insurance Regulatory and Development Authority, the Indian healthcare industry has the potential to show the same exponential growth that the software and pharmaceutical industries have shown in the past decade. Only 10 per cent of the market potential has been tapped till date. This is indicative of the strong growth potential of the Indian healthcare market.
The last few years have seen a rise in the purchasing power of the middle class. With an erratic and sedentary urban lifestyle of the growing middle and upper-middle class in India, healthcare has become an important component of everyone's life. Expenditure on healthcare is rising with increase in self-awareness and availability of high-class healthcare facilities with the advent of private players. According to ICRA 2005 report on Indian Medical Care Industry, India spends 5.10 percent of its GDP on healthcare. India's expenditure on health, in terms of percentage of GDP, is among the highest for developing countries. India is being seen as the preferred destination for quality health solutions due to the major cost advantage over the western countries.
The burgeoning segment; Pathology and Diagnostics testing market in India
The diagnostics and pathology testing market in India represents one of the most lucrative markets in the world. The market has grown robustly in past few years on the back of increasing disease prevalence and rising consumer awareness. There are 2 major segments of the Diagnostics Market:
1) Pathological Laboratories 2) Diagnostic kits and reagents
Both of the above segments provide very strong potential for growth, both in the domestic market and as a preferred hub for clinical trials and outsourcing from western countries.
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