Indian Healthcare: A Promising Sector For Private Equity Investment
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Let's take a look at some of the key
factors that make India's healthcare market a popular destination for private
equity investment.
Rising Demand
India's Healthcare Market is expected to
reach US$ 372 billion due to rising income, improved health awareness,
lifestyle diseases, and expanding insurance access. The burden of new diseases
and an expanding middle class are increasing the need for health insurance.
Health insurance penetration is expected to rise in the coming years due to the
rising demand for quality, affordable healthcare.
Government Initiative & Support
Some of the major initiatives that the
Indian government has taken 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.
- By the year 2025, the Indian government intends to spend 2.5%
of the GDP on public health.
What's
in Store?
There are numerous opportunities for
players in the medical device industry in India. With significant capital
investment in cutting-edge diagnostic facilities, the nation has also emerged
as one of the most popular destinations for high-end diagnostic services,
serving a larger segment of the population. In addition, Indian patients'
awareness of their own health care has increased.
There are numerous opportunities in the
highly diversified Indian healthcare sector. Additionally, India has a
competitive advantage due to its higher success rate in obtaining ANDA
approvals for its businesses. In addition, India provides numerous
opportunities in research and development and medical tourism. In general, the
Indian healthcare sector presents numerous investment opportunities for private equity investment in India.
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