The healthcare sector which has been growing at 22 per cent CAGR since 2016 is expected to touch $372 billion by 2022, making it the largest sector in terms of both revenue and employment, according to a report by NITI Aayog.

“Several factors are driving the growth of the Indian healthcare sector, including an aging population, a growing middleclass, the rising proportion of lifestyle diseases, an increased emphasis on public-private partnerships as well as accelerated adoption of digital technologies.

The Covid-19 pandemic has not only presented challenges but also opportunities for India to grow. All these factors, together make the country’s healthcare industry ripe for investment” said NITI Aayog CEO Amitabh Kant.

Policy driven

The report, “Investment Opportunities in India’s Healthcare Sector” noted that the Centre has undertaken deep structural reforms such as policies for encouraging FDI and PLI schemes for boosting domestic manufacturing of pharmaceuticals and medical devices. “The Covid-19 pandemic crisis has opened the flood gates for Indian start-ups, many of whom have risen to the occasion and accelerated the development of low-cost, scalable, and quick solutions. Further, the pandemic is providing an impetus to the expansion of telemedicine and the home healthcare market in the country. In the hospital segment, the expansion of private players to Tier-2 and -3 locations, beyond metropolitan cities, offers an attractive investment opportunity,” the report stated.

Untapped opportunity

The medical devices industry also has untapped opportunities for expansion of diagnostic and pathology centers as well as miniaturised diagnostics, the report added.

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