Financial Research and Analysis

Abstract

Hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment are all part of the Indian healthcare business. The sector is expanding at a rapid pace as a result of improved coverage, services, and increased spending by both public and private actors. Since 2016, the healthcare industry has grown at a compound annual growth rate (CAGR) of about 22%. Healthcare has grown to be one of the most important areas of the Indian economy, both in terms of income and jobs. In 2015, the sector was the fifth-largest employer, directly employing 47 lakh people. According to National Skill Development Corporation (NSDC) forecasts, healthcare can create 27 lakh new employment in India between 2017 and 22 – more than 500,000 new jobs each year. According to National Skill Development Corporation (NSDC) forecasts, healthcare can create 27 lakh new employment in India between 2017 and 22 – more than 500,000 new jobs each year. Niti Aayog, while outlining the many investment prospects in India's healthcare sector, has stated that investors can take advantage of the favourable climate to engage in the country's healthcare business, which is anticipated to grow to $372 billion by 2022. In terms of pharmaceuticals, India has the chance to increase local production, thanks to new government initiatives with performance-based incentives as part of the Aatmanirbhar Bharat project. Furthermore, patents worth $251 billion are anticipated to expire internationally between 2018 and 2024, offering a profitable opportunity for the country's pharmaceutical sector. The growth of private players into Tier II and Tier III cities in the hospital market presents an appealing investment opportunity. According to Invest India's Investment Grid, there are over 600 investment possibilities in the country's hospital/medical infrastructure subsector totaling $32 billion (Rs 2.3 lakh crore).