Indian Healthcare
Healthcare has become one of India’s largest sectors, both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical
tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk
pace due to its strengthening coverage, services, and increasing expenditure by public as well private
players
Healthcare has become one of India’s largest sectors, both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical
tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk
pace due to its strengthening coverage, services, and increasing expenditure by public as well private
players.
India’s healthcare delivery system is categorized into two major components - public and private. The
government, i.e. public healthcare system, comprises limited secondary and tertiary care institutions
in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare
centres (PHCs) in rural areas. The private sector provides a majority of secondary, tertiary, and
quaternary care institutions with a major concentration in metros, tier-I and tier-II cities
India's competitive advantage lies in its large pool of well-trained medical professionals. India is also
cost-competitive compared to its peers in Asia and western countries. The cost of surgery in India is
about one-tenth of that in the US or Western Europe. The low cost of medical services has resulted in
a rise in the country’s medical tourism, attracting patients from across the world. Moreover, India has
emerged as a hub for R&D activities for international players due to its relatively low cost of clinical
research.
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 1:854, assuming 80% availability
of 12.68 lakh registered allopathic doctors and 5.65 lakh AYUSH doctors.
DEVELOPMENTS
Some of the recent developments in the Indian healthcare industry are as follows:
As of February 20, 2023, more than 220.63 crore COVID-19 vaccine doses have been
administered across the country.
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.
As of February 2023, the number medical colleges in India stood at 612.
In July 2022, the Indian Council of Medical Research (ICMR) released standard treatment
guidelines for 51 common illnesses across 11 specialties to assist doctors, particularly in rural
regions, in diagnosing, treating, or referring patients in time for improved treatment
outcomes.
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.
As of November 18, 2021, 80,136 Ayushman Bharat-Health and Wellness Centres (AB-
HWCs) are operational in India.
As of November 18, 2021, 638 e-Hospitals are established across India as part of the central
government's ‘Digital India’ initiative.
GOVERNMENT INITIATIVES
In the Union Budget 2023-24:
Under the Union Budget 2023-24, the Ministry of Health and Family Welfare has been
allocated Rs. 89,155 crore (US$ 10.76 billion), an increase of 3.43% compared to Rs.
86,200.65 crore (US$ 10.4 billion) in 2021-22.
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 3,365 crore (US$
0.41 billion)
Human Resources for Health and Medical Education was allotted Rs. 6,500 crore (US$ 780
million).
National Health Mission was allotted Rs. 29,085 crore (US$ 3.51 billion).
Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 7,200
crore (US$ 870 million).
Rs. 5,156 crore (US$ 675.72 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.
In July 2022, the World Bank approved a US$ 1 billion loan towards India's Pradhan Mantri-
Ayushman Bharat Health Infrastructure Mission.
Road Ahead
India is a land full of opportunities for players in the medical devices industry. The country has
also become one of the leading destinations for high-end diagnostic services with tremendous
capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the
population. Besides, Indian medical service consumers have become more conscious towards
their healthcare upkeep. Rising income levels, an ageing population, growing health awareness
and a changing attitude towards preventive healthcare is expected to boost healthcare services
demand in the future. Greater penetration of health insurance aided the rise in healthcare
spending, a trend likely to intensify in the coming decade.
The Government aims to develop India as a global healthcare hub, and is planning to increase
public health spending to 2.5% of the country's GDP by 2025
