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Indian Healthcare Industry
:
Growing And Innovating High-Tech Area
The Indian
healthcare industry which comprises of hospital services,
healthcare equipment, health insurance, managed care and
pharmaceuticals is projected to grow at 13% annually. It
is estimated that the contribution of healthcare market in
India to the country’s GDP will increase from 5.2% at
present to 8.5% over the next ten years. Private
healthcare will continue to be the largest component of
healthcare spending A majority of Indians, particularly
the middle and high income groups, have confidence in
healthcare products and services offered by private
hospitals rather than the government-owned healthcare
agencies even though the private sector healthcare service
is 60% more expensive than the government hospitals.
“MEDICAL PLASTICS DATA SERVICE” has been highlighting
various aspects of the Indian Healthcare Industry in
different ways. In order to give comprehensive overview
about the recent developments in the industry, we are
reproducing below some of the important news items that
covers important aspects like Global Positioning of the
Indian Healthcare Industry, Present and Future Scenarios
in India, Presence of Multinational Companies,
Technological Developments, Identified Gaps etc.
Global Positioning
India set to become a global hub
After
information technology, bio-technology may be the next
sector that the global market will identify India with.
Bio-technology is not only proving to be of tremendous
help to the agriculture sector, but, the pharmaceutical
sector is also gearing up to match the global inclination
towards bio-tech products.
The Indian
pharmaceutical market is growing exponentially. In 1997,
its value was a US $3 billion, and expected to rise to US
$9 billion by the year 2005. A study by Mckinsey predicts
an innovation - led growth of US $25 billion by 2010. Due
to the rising costs of research and development abroad,
companies from the US and Europe are looking for not only
contract research in India but also either acquiring stake
in smaller pharmaceutical companies or setting up joint
ventures.
India also
offers a suitable population for clinical trials because
of its diverse gene pools covering a large number of
diseases. The IT skill of Indian manpower also offer
services in bioinformatics and data mining.
[Business Standard dated 03/12/2003]
Indian
Healthcare Industry : An Overview
Indian
Healthcare Industry: Rising change in attitude by Middle
Class
A RISING
middle in come group and a change in attitude to-wards
healthcare is driving the growth in the Indian healthcare
industry. “The middle income group spends Rs 5,000 to Rs
10,000 on an average per person every year primarily on
preventive care and health check ups and demand the best
healthcare products and services. They visit
multispeciality private hospitals even if they have to pay
for the service from their own pocket,” said Dr C
Janakiraman, CEO, Alticure Research.
The
increasing per capita expense from this group is expected
to support the growth of the Indian healthcare industry,
he added. Population of over 100-150m demand high quality
healthcare services at a competitive price. With this
demand, new hospital projects in the private sector are
mushrooming in the country. The impact is that the $17bn
healthcare industry which comprises of hospital services,
healthcare equipment, health insurance, managed care and
pharmaceuticals is to grow at 13% annually.
The Central
Bureau of Health Intelligence study also confirms that a
majority of Indians, particularly the middle and high
income groups, have confidence in healthcare products and
services offered by private hospitals rather than the
government-owned healthcare agencies.
According
to Dr Janakiraman, private sector healthcare service is
60% more expensive than the government hospitals and these
groups are willing to pay for it. To meet this growing
demand and service standards, many Indian hospitals have
begun to import the latest equipment and instruments.
This trend
is expected to continue over the next five years. The
driving force that creates the demand for medical
equipment include increased income, growing health
consciousness in the population, establishment of a number
of super-speciality hospitals and specific diagnostic
centers and favourable government policies like the
reduction in import duties. “The medical equipment vendors
are pushing out newer models every year some of which
provide substantial newer features while some offer
products with only marginal improvements.
[Ref:
Economic Times, 07/01/2003]
Healthcare to contribute 8.5% to GDP by 2012: CII-Mckinsey
study
The total
healthcare market in India is expected to grow
significantly and its contribution to the country’s GDP
will increase from 5.2% at present to 8.5% over the next
ten years. The expenditure on healthcare will more than
double the year 2012 and the healthcare spending is
expected to increase from Rs 86,000 crore at present to Rs
2,00,000 crore in the next decade, reveals a CII-Mckinsey
study on healthcare. According to the study, private
healthcare will continue to be the largest component of
healthcare spending and is expected to double from 60,000
crore to Rs 156, 000 crore by 2012. Moreover, if health
insurance cover becomes operative, the private spending
will further go by an additional Rs. 39,000 crore.
With the
rise in lifestyle diseases such as cancer and
cardiovascukar, the spending pattern will change
dramatically by 2012 with inpatient spending accounting
for 47% of the private health care spending, up from the
39% at present, the CII-Mckinsey study has pointed out.
It also
explains the current situation in the healthcare sector in
India and has pointed out the poor performance of the
sector in terms of coverage, purchasing and delivery in
comparison to other developing countries such as Brazil,
Thailand and Korea. Citing an example the study has
pointed out that India has only 1.5 beds per thousand
people in contrast to the average of 4.3 beds per thousand
in other countries.
[Ref:
Pharmabiz, Nov. 7, 2002]
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