Skip to main content

Indian health care market-2013.

what comprises of The Indian healthcare industry?
Hospitals, diagnostics,medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine, health insurance and medical equipment.

How much money was flowed to india as FDIs?
in last decade(2000 -2013), the FDI flows  as follows.
to hospitals and diagnostic centers: $200 crore.
to drugs&pharma: $1200 crore
to surgical eqipment and disposables: $75 crore.

What is the total health care market size in India?
$ 80 billion .

what is the market break-up of revenues?
from hospital services:70%
from pharma sector:13%
from medical equipment:9%
medical insurance:4%
diagnostics: 3%

what is the share of the private sector in health care delivery?
in 2013:75% .
But the trends estimate, it rises to 80% by 2015.

How is the share of health care spending?
govt hospitals:40%
top tier corporate hospitals:12%
mid tier corporate hospitals: 20%
small nursing homes: 28%.

Interesting points.

  • life style diseases contributing & consuming  almost 50% if inpatient services
  • re-emergence of traditional (AYUSH) medical care,which is valued at $1.5 billions.
  • Health infrastructure @2013: per 1lac population: Modern physicians: 80;AYUSH physicians: 80;Nurses:100;beds:100.
  • India needs 10 lac more specialists,10lac hospital beds and 20 lac nurses by 2025..


what is the per capital healthcare expenditure? Rs.4000/-

what are the new initiatives from the govt?
  • The Government of India has allocated Rs 3,000 crore in the 12th Five-Year Plan (2012–17) for development of the medical device sector.
  • in 11th plan budget allocation to health sector is just $20 billions(0.9% of the GDP).But for 12th plan,govt triples the allocation and rised it to $55billions (2.5%of GDP).
  • Medical devices were  brought under the ambit of the Drugs and Cosmetics (Amendment) Bill, 2013.
  • 100 per cent FDI is permitted for health and medical services under the automatic route. 
  • The Department of Health Research has decided to set up a Medical Technology Assessment Board to evaluate all kinds of Medical Technologies.
  • reduced excise and customs duty(reduced to 5% from 25%).
  • import duty on medical equipment reduced to 7.5%.
  • exemption from service tax.
  • the benefit of section 10(23G) of the IT act has been extended to financial institutions those providing long term capital to hospitals above 100 beds.
  • the benefit of section 80 -IB extended to Rural  hospitals above 100 beds. such hospitals are entitled to 100% deduction on profits for 5years.
  • established NHM (RHM+UHM). RSBY expanded to more sections of downtrodden.
  • national mission for  geriatric care is established.
  • In FY2014-allocated $85 crore for improving medical education& research.

How much spending in Healthcare-IT ?
The Indian healthcare providers spent  Rs 5,700 crore  on IT products and services in 2013.

Comments