Before we latch on to the subject of Health Care in India, the following are some points regarding current status of Indian Economy:
• Fastest growing economy in the world
• GDP growing at 9.5%
• In about seven years Indian economy would cross US $1.5 Trillion mark.
• Foreign Direct Investment amounts to US $12.5 billion
• Foreign Trade and exports to cross US $125 billion in current fiscal year
Now let us get the statistics for Indian Health care Economy:
• Currently valued at US $35 billion
• Expected growth of 13% annually
• Percentage GDP expenditure is highest amongst developing nations
• Low costs compared to other countries
• Largest service sectors in the economy with over 4 million people engaged
• Expected job opportunities at 12%
Health care Industry in India is hence set for a major upsurge. It is like a hen which can lay a golden egg each day if not more. The following are some of the factors which are influencing the upward trend for health care in India:
Health Insurance:
Health Insurance has now matured from infancy stage. The Business is growing almost at 50% per year and is projected to grow to US $ 5.75 billion by 2010. Almost all the insurance companies have outsourced their claim processing and settlement protocol to Third Party Administrators (TPA). This has brought in a sea change in processing and settlement of claims. With this kind of fluency in working more and more people are getting medical insurance.
Economy Upsurge:
As mentioned above Indian Economy on the whole is also experiencing a tremendous upsurge. The IT industry growth is like a fairy tale. Along with IT many other industries have also flourished which has effected in rise in disposable income of common man. In turn the rise in income has also resulted in increase in Life style oriented health problems.
Investments in Health care:
Health care sector is attracting huge investments from domestic players, financial investors and private equity firms. Last year US $450 million were invested in this sector. Indian Government is also now contributing along with private sector companies. With rise in cash flows, health care sector now has the fiscal power to embark upon ambitious projects, high end research, creating or procuring sophisticated technology etc.
Rise of Medical Tourism:
4,50,000 foreign patients were treated last year. Currently Medical Tourism is churning out US $350 million per year. It has the potential to grow at 30% annually and become a US $2 billion industry by 2012. In India treatment cost is lowest as it is valued to be 20% of the average cost incurred in the US, Singapore, Thailand and South Africa. Lower cost plus the tourist attractions offered by India are now the key selling points. World Class medical facilities and expertise is now available in India. Increasing popularity of traditional Indian Medicine – Ayurveda combined with our family values and genuine concern for our patients, Medical Tourism in India is a gold mine.
Up gradation in Hospital Infrastructure and Services:
Keeping in trend with patient’s requirement to have maximum comforts, hospitals have now started to modernize. Excellent and comfortable accommodation facilities are now being created. Hospitals are looking more like 5 star hotels or resorts. Qualified, efficient & effective nursing, para medical and administrative staff is being recruited along. State of art ambulance service is a feature of almost any prominent hospital in India.
Availability of world class equipment:
India today has best of current medical technology. The concentration now is on Indigenization so as to bring down the costs. The Indian medical equipment industry is around US$ 2.17 billion and is growing at 15 per cent per year. It is estimated to reach US$ 4.97 billion by 2012. This would naturally bring advanced technology in reach of common man.
Information Technology:
IT has played a major role in changing the outlook of healthcare in India. Video Conferencing, Tele Medicine, Online Medical Record Storage and Retrieval etc are now the utilities commonly used in India. Gone are the days where we required a doctor in person to advise us, healthcare is now available at a click of a button.
Governments Initiative:
The Government has launched the National Rural Health Mission (NRHM) in 2005 that aims to provide quality health care for all. During the 2009 interim budget, the government has allocated US$ 2.42 billion for NRHM. Government has increased the expenditure on health care from 0.9 % of GDP to 2-3 per cent of GDP by 2012. It has also relaxed the import duty on medical equipment and life saving drugs.
Research:
Clinical research and manufacturing is shifting away from the United States and Europe, hence outsourcing to India would continue to grow at a fast pace. Clinical research and manufacturing are growing at a compound annual growth rate (CAGR) of 33% and is expected to be US$6.6 billion by 2013.
Indian Health care scenario is indeed something to watch out for as it has become an extremely vibrant power in overall Indian Economy.
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