New Delhi, January 26: The Indian healthcare sector is expected to reach Rs 19,56,920 crore by 2020 and would generate 40 million jobs in India by 2030, a new analysis found.
Rising income level, greater health awareness, increased precedence of lifestyle diseases and improved access to insurance would be the key contributors to growth.
The analysis was done by India Brand Equity Foundation (IBEF), a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India.
Health insurance is gaining momentum in India. Gross direct premium income underwritten by health insurance grew 17.5 per cent y-o-y to Rs 20,274.11 crore (US$ 2.90 billion) in FY20 (up to August 2019), it revealed.
100,000 jobs are expected to be created from Ayushman Bharat, the National Health Protection Scheme.
As of June 12, 2019, number of sub centres reached 168,418 and number of Primary Health Centres (PHCs) increased to 33,476.
The hospital industry in India stood at Rs 4 lakh crore (US$ 61.79 billion) in FY17 and is expected to reach Rs 8,60,000 crore (US$ 132.84 billion) by FY22.
The private sector has emerged as a vibrant force in India’s healthcare industry, lending it both national and international repute.
It accounts for almost 74 per cent of the country’s total healthcare expenditure. During 2000 to 2014, there was a 370 per cent increase in health expenditure.
Telemedicine is a fast-emerging trend in India; major hospitals (Apollo, AIIMS, and Narayana Hrudayalaya) have adopted telemedicine services and entered into several public-private partnerships (PPP).
Further, presence of world-class hospitals and skilled medical professionals has strengthened India’s position as a preferred destination for medical tourism.
Indian medical tourism market is growing at the rate of 18 per cent year on year and is expected to reach US$ 9 billion by 2020.
The government has approved the continuation of National Health Mission with a budget of Rs 31,745 crore (US$ 4.40 billion) under the Union Budget 2019-20.
National Nutrition Mission is aimed to reduce the level of stunting by 2 per cent, 2 per cent under-nutrition, 3 per cent anaemia and low birth babies by 2 per cent ever year.
The Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY), the largest government funded healthcare program targeting more than 500 million beneficiaries, was allocated Rs 6,400 core (US$ 887.04 million), under the Union Budget 2019-20 and as of September 2019, about 50 lakh people have received free treatment under the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana and 2 crore beneficiaries had generated.
The government has announced Rs 62,659.12 crore (US$ 8.97 billion) outlay for the health sector in FY20.Under the Rashtriya Swasthya Bima Yojna (RSBY), Government of India released budget estimate Rs 2,000 crore (US$ 286.16 million) in FY18-19, compared to the amount of Rs 436.66 crore (US$ 66.71 million) which was released in FY16-17.
As of July 2019, around 125.7 million families have enrolled as beneficiaries under Pradhan Mantri Jan Arogya Yojana (PMJAY).
The scheme has enrolled 16,039 hospitals, including 8,059 private hospitals and 7,980 public hospitals also included 19 Ayush packages in the treatment scheme.
The government is planning to increase public health spending to 2.5 per cent of the country’s GDP by 2025. The health share of Gross Domestic Product (GDP) is expected to rise 19.7 per cent by 2027.