The Indian healthcare market is predicted to rise in size and value and reach a valuation of US $372 billion by 2022 from the current $110 billion as of 2016. This would mean a compounded annual growth of 22 percent, according to the ASSOCHAM-RNCOS joint paper.
There has been an increasing number of lifestyle diseases recorded in recent year alongside an ever-increasing demand for affordable healthcare delivery systems due to the rise in healthcare costs, technological advancements, emergence of telemedicine, rapid health insurance penetration, mergers and acquisitions.
Endeavors undertaken by the government such as e-health with tax benefits, added incentives and many more new regulatory policies have contributed to this fact greatly. This is according a noted paper on the subject of ‘Indian Healthcare Sector – An Overview’, jointed written by the ASSOCHAM with the research firm RNCOS.
The study factored in the upturn in the medical tourism population, the growing geriatric population and a systematic fall in the cost of acquiring medical services as a driving force for the medical devices market in India. Presently evaluated at $4 billion it is expected to surpass the $11 billion milestone by 2022.Therefore recording a compounded annual growth rate of an impressive 15 percent.
However, the study noted that imports constitute 75 percent of the medical devices market in India.
The paper also stated that the goods and Services Tax (GST) will have a have a very positive effect on the healthcare sector, especially the pharmaceutical branch.