India's healthcare industry expected to reach USD 372 billion in 2022: NITI Aayog

India's healthcare industry is expected to reach 372 billion dollar in 2022. The country's healthcare sector has grown rapidly over the last five years, at a compound annual growth rate of around 22 per cent. NITI Aayog has released a report outlining the range of investment opportunities in various segments of the healthcare sector.

NITI Aayog in a tweet said, "The report on Investment Opportunities in #India's Healthcare Sector was released today by #NITIAayog Member Dr. VK Paul, CEO @amitabhk87, Additional Secretary Dr. Rakesh Sarwal, Policy Specialist @urvashi01 & Sr. Consultant @kmadangopal."

India's healthcare industry includes hospitals, medical devices and equipment, health insurance, telemedicine, home healthcare and medical value travel. Healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment.

The report says, healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment. The sector has been growing at a CAGR of 22 per cent since 2016, employing 4.7 million people directly. As per estimates by the National Skill Development Corporation, healthcare can generate 27 lakh additional jobs in India between 2017 and 2022 – over 5,00,000 new jobs per year.

The report was released by NITI Aayog Member Dr V K Paul, CEO Amitabh Kant and Additional Secretary Dr Rakesh Sarwal.

Report says several factors are driving the growth of the Indian healthcare sector including an ageing population, a growing middle class, the rising proportion of lifestyle diseases, an increased emphasis on public-private partnerships as well as accelerated adoption of digital technologies, including telemedicine, besides heightened interest from investors and increased FDI inflows over the last two decades.

The Indian Government has undertaken deep structural and sustained reforms to strengthen the healthcare sector and has also announced conducive policies for encouraging FDI. The Aatmanirbhar Bharat Abhiyaan packages include several short-term and longer-term measures for the health system, including Production-Linked Incentive (PLI) schemes for boosting domestic manufacturing of pharmaceuticals and medical devices. Additionally, India is working towards becoming a hub for spiritual and wellness tourism, as the country has much to offer in Ayurveda and Yoga.

It adds, the COVID-19 pandemic has not only presented challenges but also several opportunities for India to grow. The crisis has opened the flood gates for Indian start-ups, many of whom have risen to the occasion and accelerated the development of low-cost, scalable, and quick solutions. Further, the pandemic is providing an impetus to the expansion of telemedicine and the home healthcare market in the country.

All these factors, together, make India's healthcare industry ripe for investment. In the hospital segment, the expansion of private players to Tier 2 and Tier 3 locations, beyond metropolitan cities, offers an attractive investment opportunity. India also has the opportunity to boost domestic manufacturing of pharmaceuticals, supported by the recent PLI schemes, alongside offering investment avenues in segments like contract manufacturing and research, over-the-counter drugs, and vaccines. India is also a land of opportunities for players in the medical devices industry, with tremendous opportunities for expansion of diagnostic and pathology centres as well as miniaturised diagnostics.