Can India be a Global Healthcare Hub?

The changing economy, market demands, and the technological/digital revolution are redefining the way healthcare is delivered. India, as a leading destination for healthcare is prominently placed among the top healthcare providers in the world for its medical know-how, technological expertise, and cost-effective and efficient healthcare. Increasing health awareness and prevention, rising income levels, penetration of health insurance, and increasing precedence of lifestyle diseases has become the key contributors to the growth of the healthcare industry. With the tremendous growth of the healthcare market generating revenue and employment for the country, India is all set to develop into a global healthcare hub in the coming years.

The Indian healthcare sector is expanding and growing at a rapid swiftness meeting, or even exceeding the international quality standards. It is expected to register a CAGR of 22.9 percent and reach US$ 280 billion by 2020. The presence of world-class hospitals and infrastructure along with skilled medical professionals has strengthened India's healthcare system further ahead in the global arena. The private healthcare sector has emerged as a vibrant force, accounting for almost 74 percent of the country’s total healthcare expenditure and lending the industry both national and international repute.

The Government of India has created the National Health Mission (NHM) to provide effective healthcare services to both the urban and rural population across the country. It has also come up with various policies supporting the healthcare industry in the form of reduced excise/customs duty, an exemption in service tax, and initiatives that support growth in healthcare. In recent years, there has been a rise in investments in healthcare infrastructure, benefiting both 'hard' (hospitals) and 'soft' (education, R&D) infrastructure.

The Indian healthcare sector and its benefitting subsectors have presented centers of excellence in healthcare delivery, thanks to the infrastructure developments and technological advancements. Telemedicine, medical tourism, diagnostics, and pharmaceutical industry are a few of the fast-emerging subsectors that are raising the country’s position in the global level.

Medical Tourism

Medical tourism in India is one of the most booming sectors in the country with India having around 18 percent of the global medical tourism market. Everything from heart surgeries and knee transplants to cosmetic surgeries and dental care are attracting people to come to India for treatments. Technologically advanced hospitals/infrastructure, specialized and skilled doctors and health professionals, comparatively low-cost treatment, and increasing e-medical visa facilities have together contributed a lot to the growth of medical tourism, making India one of the most sought after medical tourism destinations. The medical tourism market is expected to increase into a $9 billion-worth industry by 2020, having more than 20 percent share of the global market.

Telemedicine

As a fast-emerging trend in India, telemedicine has been widely accepted and adopted by many private hospitals. The Indian telemedicine market was valued at US$ 18.7 million in 2017 and this figure is expected to grow further at a CAGR of 20 percent in the coming years.

Pharmacy Industry

Over the past few years, the pharmacy industry has seen a steep rise in its growth with a CAGR of 14%. The size of India’s pharma market is estimated to be INR 1.8 Lakh Crore, inclusive of both domestic and foreign manufacturers producing generic medicines and therapeutic category of drugs. The self-sufficient formulation plants engage new generation technology formulations that usher the bulk imports of drugs. The bulk drug import from manufacturing units is witnessing a turnover of about USD 12 Billion, accounting to approximately 10% of the global bulk drug market. With the current pharma market undergoing promising growth, the industry size is expected to double by 2020, owing to the government initiatives and policies bringing stability in regulatory and pricing. Moreover, the existing taxation and financial conditions for research and development in the sector would further give a boost to the pharmaceutical manufacturing sector, turning India’s position in the global level more promising.

Along with the primary healthcare sector boosting its growth in the global arena, subsectors are equally contributing to its growth and development in the worldwide market. With the cumulative growth of the telemedicine, medical tourism, pharmaceutical industry, and diagnostics sector, the entire healthcare industry would witness a fair boost among the global healthcare industry. Moreover, the government interventions and policies favoring the sector growth would promote the sector’s position further higher in the global arena. With proper infrastructure and skilled healthcare professionals, India can transform into a global healthcare hub in near future.

With the need for adequately skilled and trained health professionals, there is also the rising need for healthcare management institutions to revamp their education standards. IIHMR, Delhi is one of the esteemed healthcare management institutions in the country that has been striving to prepare students for the growing industry demands. The institution provides industry-relevant academic knowledge along with practical experience that enhances their learning about the healthcare domain and helps them align with the changing trends. With a cutting-edge curriculum and experienced faculty, IIHMR instills in its students efficient knowledge that lets them stand abreast with the global standards. IIHMR, as a premier healthcare management institution, has embraced world-class pedagogy and curriculum that has been helping to generate efficient healthcare professionals who are competent and productive in all aspects of the burgeoning healthcare industry.