Indian Healthcare Sector to hit $372 Billion by 2022
According to a report prepared by the Associated Chambers of Commerce or ASSOCHAM & research firm RNCOS, the Indian healthcare market may see three-fold jump in value terms to $372 billion by 2022, driven by increasing incidence of lifestyle diseases as well as growing demand for affordable healthcare delivery systems.
The report said that the value of the healthcare sector in the year 2016 stood at USD 110 billon & will see a CAGR or compounded annual growth rate of 22%.
Apart from this, the medical devices market in India, which was valued at USD 4 billion as of 2016, is expected to cross USD 11 billion mark by the year 2022 on the back of increasing geriatric population, uptick in medical tourism as well as gradual decline in cost of medical services.
Growing lifestyle diseases, rising demand for affordable healthcare due to increasing healthcare costs, advancement in technology, emergence of telemedicine, rapid health insurance penetration, mergers & acquisitions helping to reach untapped markets & government initiatives such as incentives, tax benefits, as well as a host of regulatory policies are driving the Indian healthcare market.
The report also noted that the Goods and Services Tax or GST will be having a positive impact on the Indian healthcare market, especially on the pharmaceutical sector.
“GST would not only streamline taxation structure but lead to ease of doing business by minimising cascading effect of many taxes applied to a product, rationalise supply chain, enable flow of seamless tax credit, lower manufacturing cost, reduce cost of technology and make healthcare affordable,” it said.
The report also that increasing expenditure on R&D, rising collaborations between Indian & foreign companies, reduction in product approval time as well as many other such factors are driving the growth of pharmaceutical market in India.