(MENAFN- KNN India) India's healthcare sector is expected to be USD 280 billion in size by 2020, growing at a compound annual growth rate of 16 per cent, but it is in "dire need" of right policy framework and infrastructure push, says a FICCI-KPMG report.
Jitendra Singh, Minister of State for Development of NE Region and Minister of State for Prime Minister Office, Government of India, today suggested that the government could provide public facilities and other support to the private sector for setting up clinics, medical schools, medical colleges and diagnostic facilities in order to supplement the efforts of the government in providing healthcare services.
Addressing 'FICCI HEAL 2015', the annual flagship healthcare conference of FICCI on the theme, 'India's Healthcare: Time for Paradigm Shift' organized in association with the Ministry of Health and Family Welfare, Government of India, Singh said that the Prime Minister's call for 'Make in India' should also focus on 'Make in India Strategies for Indian healthcare', aimed at management of diseases in the country. He added that there was a need for prioritization in healthcare delivery.
Referring to the gap in healthcare services delivery in urban and rural areas, Dr. Singh stated that there was a need for providing 600 million people in the rural areas with affordable health services. Rural areas largely remain without quality healthcare and lack equipment, and this issue merits attention immediately, he added.
The sector, which was at USD 73.92 billion in 2011, is expected to grow at a CAGR of 16 per cent to USD 280 billion in 2020, the FICCI-KPMG report said.
The report added however that it was high time the country realised the significance of healthcare as an economic development opportunity at national and state levels.
"With the increasing disease burden, the healthcare sector in the country is in dire need to get the right policy framework and infrastructure impetus. Granting infrastructure status may not only help the sector receive investments, but also bring down the cost of healthcare delivery," it said.
The report further said healthcare is traditionally seen as a social sector in India, with less government focus and low budget allocation.
"India currently spends cumulatively 4.2 per cent of its GDP on healthcare, with just 1 per cent being contributed by the public sector, amongst the lowest globally," it added.
As per the report the healthcare sector impacts the country's GDP through various routes. It is also one of the largest sectors in India in terms of employment generation. If appropriate investments are made in areas, such as healthcare delivery and education, they are expected to further increase the employment rate and positively impact the country's GDP.
"Investment opportunities in the Indian healthcare sector have increased significantly and the sector is expected to be one of the most attractive investment targets for private equity (PE) and venture capital (VC) companies," the report said.
The FICC-KPMG report said that medical tourism has emerged as a strong segment due to India's growing strength in healthcare delivery.
People from different parts of the world travel to India to benefit from the comparative cost advantage and quality services. This market is expected to triple to USD 10.6 billion in 2019 from USD 2.8 billion in 2014, it added.
India's telemedicine market is also growing significantly due to its potential to offer increased access, lower costs, better patient outcomes, greater patient engagement and improved safety, the report said.
Though in a nascent stage, it is growing by about 20 per cent a year. It is expected to more than double to about USD 19 million by 2017 from USD 8 million in 2012, it added.
"There is an urgent need for a paradigm shift towards wellbeing that includes both emotional and physical, instead of just focusing on the physical sick care. We have a unique opportunity to adopt healthcare models that can deliver superior outcomes at much lesser costs," FICCI Health Services Committee Co-Chair Ashok Kakkar said.
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