Indian healthcare sector to grow to $280 billion by 2020: Report

The report further said healthcare is traditionally seen as a social sector in India, with less government focus and low budget allocation.

"India currently spends cumulatively 4.2 per cent of its GDP on healthcare, with just 1 per cent being contributed by the public sector, amongst the lowest globally," it added.

As per the report the healthcare sector impacts the country's GDP through various routes. It is also one of the largest sectors in India in terms of employment generation. If appropriate investments are made in areas, such as healthcare delivery and education, they are expected to further increase the employment rate and positively impact the country's GDP.

Commenting on the need to increase investment in the sector, KPMG in India Government & Healthcare Partner and Head Nilaya Varma said: "...investment in healthcare propels overall economic growth and is more than just social expenditure in India. Improvements in the health of citizens contributes to overall economic prosperity of the nation."

The Indian healthcare workforce is expected to double to 7.4 million in 2022 from 3.6 million in 2013, the report said.

The share of healthcare FDI has almost doubled since 2011, highlighting the growing interest of foreign players in the sector, it added.

"Investment opportunities in the Indian healthcare sector have increased significantly and the sector is expected to be one of the most attractive investment targets for private equity (PE) and venture capital (VC) companies," the report said.
The FICC-KPMG report said that medical tourism has emerged as a strong segment due to India's growing strength in healthcare delivery.

People from different parts of the world travel to India to benefit from the comparative cost advantage and quality services. This market is expected to triple to $10.6 billion in 2019 from $2.8 billion in 2014, it added.

India's telemedicine market is also growing significantly due to its potential to offer increased access, lower costs, better patient outcomes, greater patient engagement and improved safety, the report said.

Though in a nascent stage, it is growing by about 20 per cent a year. It is expected to more than double to about $19 million by 2017 from $8 million in 2012, it added.

"There is an urgent need for a paradigm shift towards wellbeing that includes both emotional and physical, instead of just focusing on the physical sick care. We have a unique opportunity to adopt healthcare models that can deliver superior outcomes at much lesser costs," FICCI Health Services Committee Co-Chair Ashok Kakkar said.