Healthcare System in India, Healthcare India - IBEF (2022)

Advantage India

Strong
Demand

* Healthcare market in India is expected to reach US$ 372 billion by 2022, driven by rising income, better health awareness, lifestyle diseases and increasing access to insurance.

* As of 2021, the Indian healthcare sector is one of India’s largest employers, as it employs a total of 4.7 million people.

Healthcare System in India, Healthcare India - IBEF (1)

Attractive
Opportunities

* In the Economic Survey of 2022, India’s public expenditure on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21.

* Two vaccines (Bharat Biotech's Covaxin and Oxford-AstraZeneca’s Covishield manufactured by SII) were instrumental in medically safeguarding the Indian population against COVID-19.

Healthcare System in India, Healthcare India - IBEF (2)

Rising
Manpower

* Availability of a large pool of well-trained medical professionals in the country.

* The number of allopathic doctors with recognised medical qualifications (under the I.M.C Act) registered with state medical councils/national medical council increased to 1.3 million in November 2021, from 0.83 million in 2010.

Healthcare System in India, Healthcare India - IBEF (3)

Policy and
government support

* In Union Budget 2022-23, Rs. 86,200.65 crore (US$ 11.28 billion) was allocated to the Ministry of Health and Family Welfare (MoHFW).

* The Indian government is planning to introduce a credit incentive programme worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s healthcare infrastructure.

Healthcare System in India, Healthcare India - IBEF (4)

Snapshot Showcase Infographics Reports

Last updated: Aug, 2022

Healthcare Industry Report Jun, 2022

Introduction

Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.

India’s healthcare delivery system is categorised into two major components - public and private. The government, i.e. public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. The private sector provides majority of secondary, tertiary, and quaternary care institutions with major concentration in metros, tier-I and tier-II cities.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.

Healthcare System in India, Healthcare India - IBEF (5)

Market Size

The Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR of 22% between 2016–22 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016.

By FY22, Indian healthcare infrastructure is expected to reach US$ 349.1 billion.

As of 2021, the Indian healthcare sector is one of India’s largest employers as it employs a total of 4.7 million people. The sector has generated 2.7 million additional jobs in India between 2017-22 -- over 500,000 new jobs per year.

In the Economic Survey of 2022, India’s public expenditure on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21 and 1.3% in 2019-20.

In FY21, gross direct premium income underwritten by health insurance companies grew 13.3% YoY to Rs. 58,572.46 crore (US$ 7.9 billion). The health segment has a 29.5% share in the total gross written premiums earned in the country.

The Indian medical tourism market was valued at US$ 2.89 billion in 2020 and is expected to reach US$ 13.42 billion by 2026. According to India Tourism Statistics at a Glance 2020 report, close to 697,300 foreign tourists came for medical treatment in India in FY19. India has been ranked 10th in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association.

The e-health market size is estimated to reach US$ 10.6 billion by 2025.

As per information provided to the Lok Sabha by the Minister of Health & Family Welfare, Dr. Bharati Pravin Pawar, the doctor population ratio in the country is 1:854, assuming 80% availability of 12.68 lakh registered allopathic doctors and 5.65 lakh AYUSH doctors.

Investments/ Developments

Between April 2000-March 2022, FDI inflows for drugs and pharmaceuticals sector stood at US$ 19.41 billion, according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT). FDI inflows in sectors such as hospitals and diagnostic centres and medical and surgical appliances stood at US$ 7.93 billion and US$ 2.41 billion, respectively. Some of the recent developments in the Indian healthcare industry are as follows:

  • As of July 20, 2022, more than 200.61 crore COVID-19 vaccine doses have been administered across the country.
  • As of July 2022, the number medical colleges in India stood at 612.
  • In July 2022, the Indian Council of Medical Research (ICMR) released standard treatment guidelines for 51 common illnesses across 11 specialties to assist doctors, particularly in rural regions, in diagnosing, treating, or referring patients in time for improved treatment outcomes.
  • In July 2022, the National Pharmaceutical Pricing Authority (NPPA) fixed the retail prices for 84 drug formulations, including those used for the treatment of diabetes, headache, and high blood pressure.
  • In March 2022, Hyderabad-based pharmaceutical company Biological E applied for emergency use authorisation (EUA) for its Covid-19 vaccine Corbevax for the 5-12 year age group.
  • In January 2022, Phase 3 trials commenced of India's first intranasal vaccine against COVID-19 that is being developed by Bharat Biotech, in conjunction with the Washington University School of Medicine in St Louis, the US.
  • Startup HealthifyMe, with a total user base of 30 million people, is adding half a million new users every month and crossed US$ 40 million ARR in January 2022.
  • The number of policies issued to women in FY21 stood at 93 lakh, with one out of every three life insurance policies in FY21 sold to a woman.
  • In December 2021, Eka Care became the first CoWIN-approved organization in India, through which users could book their vaccination slot, download their certificate and even create their Health IDs.
  • As of November 18, 2021, 80,136 Ayushman Bharat-Health and Wellness Centres (AB-HWCs) are operational in India.
  • As of November 18, 2021, 638 e-Hospitals are established across India as part of the central government's ‘Digital India’ initiative.
  • In November 2021, Aster DM Healthcare announced that it is planning Rs. 900 crore (US$ 120.97 million) capital expenditure over the next three years to expand its presence in India, as it looks at increasing the share of revenue from the country to 40% of the total revenue by 2025.
  • In September 2021, Russian-made COVID-19 vaccine, Sputnik Light received permission for Phase 3 trials in India.
  • In September 2021, Biocon Biologics Limited, a subsidiary of Biocon, announced a strategic alliance with Serum Institute Life Sciences, a subsidiary of Serum Institute of India (SII). The alliance is expected to strengthen India's position as a global vaccine and biologics manufacturing powerhouse.

Government Initiatives

Some of the major initiatives taken by the Government of India to promote the Indian healthcare industry are as follows:

  • In the Union Budget 2022-23:
    • Rs. 86,200.65 crore (US$ 11.28 billion) was allocated to the Ministry of Health and Family Welfare (MoHFW).
    • Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 10,000 crore (US$ 1.31 billion)
    • Human Resources for Health and Medical Education was allotted Rs. 7,500 crore (US$ 982.91 million).
    • National Health Mission was allotted Rs. 37,000 crore (US$ 4.84 billion).
    • Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 6,412 crore (US$ 840.32 million).
    • The Government of India approved continuation of ‘National Health Mission’ with a budget of Rs. 37,000 crore (US$ 4.85 billion).
    • Rs. 5,156 crore (US$ 675.72 million) was allocated to the newly announced PM-ABHIM to strengthen India’s health infrastructure and improve the country’s primary, secondary and tertiary care services.
  • In July 2022, the World Bank approved a US$ 1 billion loan towards India's Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission.
  • In November 2021, the Government of India, the Government of Meghalaya and the World Bank signed a US$ 40-million health project for the state of Meghalaya. Project will improve the quality of health services and strengthen the state’s capacity to handle future health emergencies, including the COVID-19 pandemic.
  • By September 21, 2021, the Health Ministry’s eSanjeevani telemedicine service crossed 12 million teleconsultations since its launch, enabling patient-to-doctor consultations from the confines of their homes, and doctor-to-doctor consultations.
  • In September 2021, Prime Minister Mr. Narendra Modi launched the Ayushman Bharat Digital Mission. The mission will connect the digital health solutions of hospitals across the country with each other. Under this, every citizen will now get a digital health ID and their health record will be digitally protected.
  • In September 2021, the Telangana government, in a joint initiative with World Economic Forum, NITI Aayog and HealthNet Global (Apollo Hospitals), launched ‘Medicine from the Sky’ project. The project will pave the way for drone delivery of life saving medicines and jabs in far-flung regions of the country.
  • According to a spokesperson, the Indian government is planning to introduce a credit incentive programme worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s healthcare infrastructure. The programme will allow firms to leverage the fund to expand hospital capacity or medical supplies with the government acting as a guarantor and strengthen COVID-19-related health infrastructure in smaller towns.
  • In July 2021, the Ministry of Tourism established the ‘National Medical & Wellness Tourism Board’ to promote the medical and wellness tourism in India.
  • In July 2021, the Union Cabinet approved continuation of the National Ayush Mission, responsible for the development of traditional medicines in India, as a centrally sponsored scheme until 2026.
  • In July 2021, the Union Cabinet approved the MoU between India and Denmark on cooperation in health and medicine. The agreement will focus on joint initiatives and technology development in the health sector, with the aim of improving public health status of the population of both countries.
  • In June 2021, the Ministry of Health and Family Welfare, in partnership with UNICEF, held a capacity building workshop for media professionals and health correspondents in Northeastern states on the current COVID-19 situation in India, to bust myths regarding COVID-19 vaccines & vaccination and reinforce the importance of COVID-19 Appropriate Behaviour (CAB).

Road Ahead

India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep.

India’s healthcare sector is very diversified and is full of opportunities in every segment, which includes providers, payers, and medical technology. With the increase in the competition, businesses are looking to explore the latest dynamics and trends which will have a positive impact on their business. The hospital industry in India is forecast to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%.

The Government of India is planning to increase public health spending to 2.5% of the country's GDP by 2025.

References:Department for Promotion of Industry and Internal Trade (DPIIT), RNCOS Reports, Media Reports, Press Information Bureau (PIB), Union Budget 2022-23

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Major Healthcare Centers in India

  • Delhi
  • Mumbai
  • Hyderabad
  • Kolkata
  • Chennai
  • Bangalore
  • Ahmedabad

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FAQs

What is the health care system in India? ›

India has a multi-payer universal health care model that is paid for by a combination of public and private health insurance funds along with the element of almost entirely tax-funded public hospitals.

Is India's healthcare system good? ›

“Today, India's health care system is routinely ranked as one of the worst in the world,” Patel said. “A few get expensive, world-class care, while a large part of the population doesn't even get basic quality care.”

How can we solve healthcare problems in India? ›

Some Initiatives to Improve Healthcare:
  1. Suitable physical environment: ...
  2. Well-trained and motivated Health Workers: ...
  3. Concentrate on the Patients: ...
  4. Decentralizing public health services: ...
  5. Infrastructural development: ...
  6. Improving the doctor-population ratio: ...
  7. Increasing the number of Medical Colleges.
4 Apr 2022

Why is Indian Healthcare important? ›

India's healthcare industry has been growing at a Compound Annual Growth Rate of around 22% since 2016. At this rate, it is expected to reach USD 372 Billion in 2022. Healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment.

Why is health care important? ›

High-quality health care helps prevent diseases and improve quality of life. Healthy People 2030 focuses on improving health care quality and making sure all people get the health care services they need. Helping health care providers communicate more effectively can help improve health and well-being.

Is healthcare in India free? ›

Indian citizens have access to free outpatient and inpatient care in public, government facilities. The Constitution of India states that the government is to ensure the right to health for all.

Why is lack of healthcare a problem? ›

Lack of health insurance coverage may negatively affect health. Uninsured adults are less likely to receive preventive services for chronic conditions such as diabetes, cancer, and cardiovascular disease.

When did health care start in India? ›

History and Today

India's Ministry of Health was established with independence from Britain in 1947. The government has made health a priority in its series of five-year plans, each of which determines state spending priorities for the coming five years. The National Health Policy was endorsed by Parliament in 1983.

How can we improve healthcare? ›

5 Ways to Improve the Quality of Healthcare
  1. Collect Data and Analyze Patient Outcomes. If you can't measure it, then you can't manage it. ...
  2. Set Goals and Commit to Ongoing Evaluation. ...
  3. Improve Access to Care. ...
  4. Focus on Patient Engagement. ...
  5. Connect and Collaborate With Other Organizations.
9 Sept 2019

How can we make India healthy? ›

This would make India healthy and wealthy.
  1. Clean drinking water, sanitation of the best variety, three meals a day for everyone uncontaminated by animal and/or human excreta.
  2. A roof on top in place of the star-lit sky.
  3. Schooling for all kids and specially girl kids.
15 Oct 2014

What are the biggest health problems in India? ›

  • Heart disease.
  • Chronic obstructive pulmonary disease (COPD)
  • Stroke.
  • Diarrheal diseases.
  • Lower respiratory infection.
  • Tuberculosis.
  • Neonatal disorders.
  • Asthma.

What is national health care system? ›

A national health insurance system, or single-payer system, in which a single government entity acts as the administrator to collect all health care fees, and pay out all health care costs. Medical services are publicly financed but not publicly provided.

What is meant by health care system? ›

A health system, also sometimes referred to as health care system or healthcare system, is the organization of people, institutions, and resources that deliver health care services to populations in need.

How big is healthcare industry in India? ›

India's healthcare sector was worth about 280 billion U.S. dollars in 2020 and it was estimated to reach up to 372 billion dollars by 2022. The country's healthcare market had become of the largest sectors in terms of revenue and employment and the industry was growing at a rapid pace.

How can a country improve healthcare? ›

Strategies for Improving Health in Developing Countries
  1. Long term economic growth.
  2. Biomedical Intervention.
  3. Improving water sources and sanitation.
  4. Better diets.
  5. Improving women's rights and maternal health.
  6. Political solutions.
  7. Providing cheaper drugs.
  8. Controlling Corporations.
22 Feb 2021

Who makes healthcare policy? ›

Who Makes Health Policy? In the United States, health policy decisions are made at both the federal level by Congress and by healthcare agencies. Some important health policies set by Congress include Medicare policy, the Patient Protection and Affordable Care Act and HIPAA.

Which country has best health care? ›

According to this index, the ten countries with the best health care are:
  • Denmark.
  • Austria.
  • Japan.
  • Australia.
  • France.
  • Spain.
  • Belgium.
  • United Kingdom.

Are hospitals in India good? ›

Where available, data show that their medical outcomes are as good as or better than the average U.S. hospital. The ultra-low-cost position of Indian hospitals may not seem surprising — after all, wages in India are significantly lower than in the U.S.

Is healthcare affordable in India? ›

Private healthcare in India is good quality but not affordable for the majority of the rural population due to low income and a lack of basic health insurance facilities. On the other hand, the public healthcare system lacks basic infrastructure and digital-led solutions.

How can we solve lack of healthcare? ›

There are several ways of doing this, including:
  1. Reducing the income gap between primary and specialized care providers.
  2. Improving work life of primary care physicians.
  3. Increasing funding for primary care training.
  4. Expanding training program for general practitioners.

What problems should be solved in healthcare? ›

What are some problems in healthcare that can be solved with apps?
  • Misdiagnosis. A recent study claims that between 40,000 and 80,000 deaths each year in the US are caused by misdiagnosis. ...
  • Limited access to advanced clinician training. ...
  • Early-stage disease detection. ...
  • Opioid Overdose Crisis. ...
  • Cost of Healthcare Services.
2 Nov 2019

Why is the healthcare system broken? ›

High cost is the primary reason that prevents Americans from accessing health care services. Americans with below-average incomes are much more affected, since visiting a physician when sick, getting a recommended test, or follow-up care has become unaffordable.

What are the 4 main health care sectors? ›

Sectors of Healthcare Industry
  • Health care services and facilities.
  • Medical devices, equipment, and hospital supplies manufacturers.
  • Medical insurance, medical services, and managed care.
  • Pharmaceuticals & Related Segments.

What is the role of government in healthcare in India? ›

It is the responsibility of the government to prevent and treat illness, provide proper health facilities like health centres, hospitals, laboratories for testing, ambulance services, blood bank and so on for all people.

What are the 2 main issues in healthcare today? ›

The Biggest Issues Facing Healthcare Today
  • Costs and transparency. ...
  • Consumer experience. ...
  • Delivery system transformation. ...
  • Data and analytics. ...
  • Interoperability/consumer data access. ...
  • Holistic individual health. ...
  • Related:The Future of Healthcare Leadership.
26 Sept 2019

Is healthcare a human right? ›

The right to health was again recognized as a human right in the 1966 International Covenant on Economic, Social and Cultural Rights. Since then, other international human rights treaties have recognized or referred to the right to health or to elements of it, such as the right to medical care.

Where is healthcare free in the world? ›

Countries with universal healthcare include Austria, Belarus, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Iceland, Isle of Man, Italy, Luxembourg, Malta, Moldova, Norway, Poland, Portugal, Romania, Russia, Serbia, Spain, Sweden, Switzerland, Ukraine, and the United Kingdom.

Why free healthcare is important? ›

A right to health care could save lives.

According to a study from Harvard researchers, “lack of health insurance is associated with as many as 44,789 deaths per year,” which translates into a 40% increased risk of death among the uninsured. [59] Another study found that more than 13,000 deaths…

What is good quality of care? ›

In the USA, the Institute of Medicine characterises high quality care as that which is safe, effective, patient-centred, timely, efficient, equitable.

What is quality and safety in healthcare? ›

Quality has been defined by the federal Agency for Healthcare Research and Quality (AHRQ) as “doing the right thing at the right time for the right person and having the best possible result.” Patient safety is simply defined by the World Health Organization as “the prevention of errors and adverse effects to patients ...

What are the improvements in healthcare facilities in India for Class 7? ›

Question: What are the improvements in healthcare facilities in India?
  • Largest number of medical colleges in the world.
  • Approximately 15,000 new doctors every year.
  • About 18,218 hospitals by year 2000.
  • Extension of medical tourism due to low cost of treatments.
  • Fourth largest producer of medicines.
9 Oct 2020

How health sector of India is contributing in the economy? ›

They deliver diagnostic, preventive, remedial and therapeutic services. Medical equipment, pharmaceutical manufacturers and health insurance firms are also included in this sector. Strong Demand-Indian Healthcare Market is likely to reach USD 372 billion.

What are the causes of poor health in India? ›

High birth rate and fast growth of population: A number of health risks derive from high fertility rates in India. When a large number of people live in poor households located in crowded, unsanitary' surroundings, communicable diseases spread easily, high mortality results therefrom, especially among the children.

What is health issue? ›

Health issue means any physical, mental, or emotional condition, including alcohol or substance use disorder and use of prescription medications that could adversely affect an individual's ability to practice safely and competently.

What are the 5 main problems in public health? ›

With that in mind, here are 5 of the top public health problems the CDC is currently tracking, both at home and abroad.
  • Heart disease and stroke. ...
  • Alcohol-related harm. ...
  • HIV/AIDS. ...
  • Prescription drug overdose. ...
  • Antibiotic-resistant viruses. ...
  • Launch your public health career with an MPH from the University of Nevada, Reno.

What is meant by health care system? ›

A health system, also sometimes referred to as health care system or healthcare system, is the organization of people, institutions, and resources that deliver health care services to populations in need.

What is the role of government in healthcare in India? ›

It is the responsibility of the government to prevent and treat illness, provide proper health facilities like health centres, hospitals, laboratories for testing, ambulance services, blood bank and so on for all people.

What is national health care system? ›

A national health insurance system, or single-payer system, in which a single government entity acts as the administrator to collect all health care fees, and pay out all health care costs. Medical services are publicly financed but not publicly provided.

What are the two types of healthcare services available in India? ›

There are two types of healthcare facilities i.e. private healthcare services and public healthcare services.

What are the 3 types of health? ›

The three sides that make up the health triangle and contribute to your overall health are: Physical Health. Mental Health. Social Health.

What are the types of health? ›

There are five main aspects of personal health: physical, emotional, social, spiritual, and intellectual.

Why is healthcare important to the economy? ›

There is a positive correlation between total per capita healthcare expenditure and labor productivity. Thus, by increasing healthcare expenditure, the health status of Americans will improve, increasing labor productivity.

Is healthcare affordable in India? ›

Private healthcare in India is good quality but not affordable for the majority of the rural population due to low income and a lack of basic health insurance facilities. On the other hand, the public healthcare system lacks basic infrastructure and digital-led solutions.

Why health care should be free reasons? ›

Reasons Why Healthcare Should Be Free
  • bankruptcy. Medical bills can be a huge problem in families because not only is healthcare not free but it is in fact very expensive. ...
  • Correct Care. ...
  • The Unemployed. ...
  • It is a right. ...
  • It can prevent the spreading of diseases. ...
  • Equality. ...
  • Improving the economy.

What are the 4 types of healthcare systems? ›

There are four major models for health care systems: the Beveridge Model, the Bismarck model, the National Health Insurance model, and the out-of-pocket model.

Is healthcare a human right? ›

The right to health was again recognized as a human right in the 1966 International Covenant on Economic, Social and Cultural Rights. Since then, other international human rights treaties have recognized or referred to the right to health or to elements of it, such as the right to medical care.

Who has the best healthcare system in the world? ›

No. 10: Belgium
  • No. 8: Netherlands. ...
  • No. 7: United Kingdom. Quality of Life Rank: 12. ...
  • No. 6: Switzerland. Quality of Life Rank: 4. ...
  • No. 5: Canada. Quality of Life Rank: 3. ...
  • No. 4: Norway. Quality of Life Rank: 5. ...
  • No. 3: Sweden. Quality of Life Rank: 1. ...
  • No. 2: Germany. Quality of Life Rank: 7. ...
  • No. 1: Denmark. Quality of Life Rank: 2.

Who regulates health sector in India? ›

In India health sector is regulated by ministries of health at the union and state level, departments pf health, various organisations like ICMR, AICTE, NCERT etc.

How many types of health system are there in India? ›

6 Major Classified Healthcare Services in India.

What are the positive aspects of healthcare in India? ›

Some positive aspects of healthcare in India are:a India has a good number of doctors clinics and hospitals. It is among the largest producers of doctors. b Healthcare facilities have grown substantially over the years. The number of hospitals grew from11 174 in 1991 to 18 218 in 2000.

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