This report profiles India’s healthcare industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Apollo Hospitals Enterprise Ltd, Fortis Healthcare Ltd and Max India Ltd.

Huge demand-supply gap exists in the Indian healthcare sector. The country lags behind in terms of the average number of hospitals, hospital beds, doctors, nurses and other paramedical staff. The huge population accompanied with large prevalence of communicable and non-communicable diseases demands large scale development and growth in this sector. Private sector is playing a big role in this regard, accounting for more than 65% of the country’s health expenditure.

The outlook for Indian healthcare is promising due to the high growth rate in almost all of its segments, whether it’s primary, secondary or tertiary healthcare, medical equipment, diagnostics, health insurance or medical tourism. The ever-growing population, increasing government expenditure on health and growing per capita income will increase the size of this industry in the years to come.

Key Points:

• The annual expenditure of the Ministry of Health and Family Welfare (MOHFW) grew at a CAGR of 11% during 2009-14. It surpassed INR 300bn (~USD 5bn) in FY14.

• According to the World Health Organization (WHO), the size of India’s healthcare industry was around USD 80bn as of 2014. The government sector accounted for around 32% of the total spending, while the private sector accounted for the remainder.

• The healthcare sector has consistently attracted foreign investments. During April 2000 and March 2015 (FYE15), the cumulative FDI inflow in hospital and diagnostic centres was USD 2.9bn and in medical and surgical appliances segment was USD 932mn.