Healthcare
An Unprecedented
Opportunity
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
India - An Introduction
Population
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
GDP**
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics
India - Fast pace Growth
 Largest democracy
 4th largest economy by PPP index
 6th largest energy consumer
 ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
 GDP growth to continue between 6-8%
 3rd largest economy by 2050: Goldman Sachs
 Leading in IT & BPO
 Oil & Gas and Biotechnology sunrise industries
India - Leading the world
 Hero Honda - largest manufacturer of motorcycles
 Moser Baer - among the top three media manufacturers
in the world
 Pharmaceutical Industry - 4th largest in world
 Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
 100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Healthcare Delivery Market
Sector
Direct employment
Revenues/GDP
Million, 2000-2001
Healthcare
4.0
Retail banking
1.0
Power
1.2
Railways
Revenues
Employment
4.8
3.5
3.0
1.6
1.8
0.8
Hotels, restaurants
IT
5.2
5.3
Education
Telecom
Per cent, 2000-2001
1.4
1.7
0.9
0.4
1.7
Largest service industry
Second largest after education
Source:
National Accounts Statistics, 2001; Manpower profile; CBHI; McKinsey analysis
Healthcare Delivery Market Size
US$ 18.7 bn
2000-01
5.2% of GDP
US$ 45 bn
2012 (projected)*
8.5% of GDP
Growing at 13% p.a
Expected to grow at 15% over next 4-5 years
* Source: CII – McKinsey
Rising Healthcare Spending
5.2% of
GDP
14,760
2,437
Total
Healthcare
market
Pharma
market
12,327
Healthcare
delivery
market
India spent US$ 22.4 billion on healthcare (2001)
Household - Major Consumer
Private/social/ community
insurance
Employer’s
spend
15
Government’s
spend
20
Direct
household
spend
1
64
Two-thirds of healthcare spending is out-of-pocket
100% = USD 1,830 million
Out-of-pocket
Prepayment
2000-01
Source:NSSO;CMIE;NCAER;Annual Reports;Govt Budgets;Economic Survey 2000-01
Healthcare - Private sector Dominates
Government &
public
employers
Private providers
63
37
In terms of delivery, private providers capture 63%
of US$ 1,830 million spend
Source: CII -McKinsey
100% = USD 1,830 million
Health Insurance in India
 Liberalising insurance sector
 Multinationals building local partnerships
Health Insurance in India
 Health insurance cover
3 - 4 % of
1 billion population
Growth of insurance cover
in last 2 years
100%
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
MNCs in India
Philips
emerging as number two in
Indian medical systems market
Siemens
leading manufacturer of medical
equipment
Drager Medical
AG
joint venture between Dragerwerk
AG and Siemens AG
Wipro GE
largest medical systems sales &
Medical Systems service provider in India
Proton Health
Care
entering India with digital health
monitoring devices
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Invest in India
India requires
US$ 25 billion
in fresh investments
over the next 8-10 years
Source: Indian Healthcare Federation, CII
Invest in India
 Service providers
Curative and preventive in
primary, secondary and
tertiary care; rehabilitativegeriartric and others
 Manpower training
Doctors, managers, nurses,
technicians
 Infrastructure
Medical equipments &
service equipments
 Insurance
Hospitalisation
 Materials
Medicines disposables
Preventive and curative care
Rising demand for multi and super-speciality services
Shift from infectious to lifestyle diseases
85% of inpatient spend on five categories
Cardiology, Oncology, Trauma, Acute Infections
and Maternity
Rising demand for quality healthcare
In ten years between
Share of Health in Total Private Final
Consumption Expenditure
5.30%
1993-94 and 2001-02,
aggregate household
expenditure on health
3.50%
services increased by an
annual compounded rate
of 9.3%
1993-94
2001-02
Corporatisation of Indian healthcare
Corporate hospitals
150
Private hospital beds
32% of total
hospital beds
Health Insurance - A vast untapped market
Only 2.5 million or .25%
of population insured
315 million people
in India can afford
insurance
Health Insurance - A vast untapped market
Projected insured base in India (m n)
16 0
30
2005
2 0 10
Projected insurance base
2005
30 million
2010
160 million
Source: India Country Commercial Guide 2002
Preventive healthcare
Addressable population for preventive
healthcare check-ups 160 million
Year - on - year growth more than 20-25%
over 2001-2003
Healthcare BPO - Promising dynamism
Claims adjudication
Medical billing
By 2008
USD 4.5 billion opportunity
employing 200,000 people*
Forms processing
Disease coding
*Source: NASSCOM
Telemedicine - Diversifying opportunity
Tap the large Indian landscape
Rural population of 650 million people
The Indian Biomedical Devices Market
 Size
US$ 1.5 billion
 Growing demand for medical equipment
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Demographic Advantage
Growing
population
2.5%
annually
Expanding
working
population
group
65%
by 2020
Improving
life
expectancy
Age 15-54
2001 55%
2010 59%
Infrastructure
117 tertiary medical colleges and hospitals
Tertiary
Care
1,200 ESI and PSU hospitals
4,400 district hospitals
Secondary
Care
2,400 Community Health Centres
23,000 Primary Health Centres
132,000 Sub-centres
Primary
Care
1500 urban health posts
Urban
Rural
Medical Tourism
 Healthcare facilities - high quality at low cost
 Edge in surgical treatment
Potential to earn USD 1 billion from medical travel
Cost Advantage
Treatment
India
US
Liver
Transplant
40,000
5,00,000
Heart surgery
5,000 - 7,000
30,000
Bone Marrow
Transplant
30,000
2,50,000
All figures in USD
Cost of advanced surgeries
in India is attractively low compared to US
Quality Advantage
Services and facilities in India
Low in cost
High on quality
Policy Advantage
Increase in
health spend
5% of GDP by 2010
Increasing budgetary
allocation 2005
Over 20 % per annum
Union Budget
2005-06
Infrastructure status not conferred
Custom Tariff on
medical equipment
Rates reduced from20% to 15%
March 2005
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Contact in India
Indian Healthcare Federation
c/o Confederation of Indian Industry
The Mantosh Sodhi Centre
23, Institutional Area
Lodi Road
New Delhi - 110 003.
Tel 00 91 11 2462 9994-97
Fax 00 91 11 2462 6149/2461 5693
E mail [email protected]
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