healthcare an unprecedented opportunity. healthcare india - an overview market and growth...
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HealthcareAn Unprecedented
Opportunity
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
India - An Introduction
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics
India - Fast pace Growth
Largest democracy
4th largest economy by PPP index
6th largest energy consumer
ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
GDP growth to continue between 6-8%
3rd largest economy by 2050: Goldman Sachs
Leading in IT & BPO
Oil & Gas and Biotechnology sunrise industries
India - Leading the world
Hero Honda - largest manufacturer of motorcycles
Moser Baer - among the top three media manufacturers
in the world
Pharmaceutical Industry - 4th largest in world
Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Million, 2000-2001 Per cent, 2000-2001
4.0
5.3
1.0
1.2
1.6
0.8
1.7
0.4
5.2
4.8
3.5
3.0
1.8
1.4
0.9
1.7
Healthcare
Education
Retail banking
Power
Railways
Telecom
Hotels, restaurants
IT
Healthcare Delivery Market
Revenues Largest service industry Employment Second largest after education
Sector Direct employment Revenues/GDP
Source: National Accounts Statistics, 2001; Manpower profile; CBHI; McKinsey analysis
Growing at 13% p.aExpected to grow at 15% over next 4-5 years
Healthcare Delivery Market Size
2000-01US$ 18.7 bn
5.2% of GDP
US$ 45 bn
8.5% of GDP
2012 (projected)*
* Source: CII – McKinsey
2,437 12,327
14,760
5.2% of GDP
Total Healthcare
market
Pharma market
Healthcare delivery market
India spent US$ 22.4 billion on healthcare (2001)
Rising Healthcare Spending
Out-of-pocketPrepayment
Two-thirds of healthcare spending is out-of-pocket
Household - Major Consumer
100% = USD 1,830 million
20
15 1
64Government’s spend
Private/social/ community insuranceEmployer’s
spend
Direct household
spend
2000-01
Source:NSSO;CMIE;NCAER;Annual Reports;Govt Budgets;Economic Survey 2000-01
Government & public employersPrivate providers
100% = USD 1,830 million
6337
In terms of delivery, private providers capture 63% of US$ 1,830 million spend
Healthcare - Private sector Dominates
Source: CII -McKinsey
Health Insurance in India
Liberalising insurance sector
Multinationals building local partnerships
Health Insurance in India
Growth of insurance cover 100% in last 2 years
Health insurance cover 3 - 4 % of
1 billion population
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
MNCs in India
Philips emerging as number two in Indian medical systems market
Siemens leading manufacturer of medical equipment
Proton Health entering India with digital health Care monitoring devices
Drager Medical joint venture between Dragerwerk AG AG and Siemens AG
Wipro GE largest medical systems sales &Medical Systems service provider in India
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Invest in India
India requires
US$ 25 billion
in fresh investments
over the next 8-10 years
Source: Indian Healthcare Federation, CII
Service providers
Manpower training
Infrastructure
Insurance
Materials
Curative and preventive in
primary, secondary and
tertiary care; rehabilitative-
geriartric and others
Doctors, managers, nurses,
technicians
Medical equipments &
service equipments
Hospitalisation
Medicines disposables
Invest in India
Preventive and curative care
Rising demand for multi and super-speciality services
Shift from infectious to lifestyle diseases
85% of inpatient spend on five categories Cardiology, Oncology, Trauma, Acute Infections
and Maternity
Share of Health in Total Private Final Consumption Expenditure
3.50%
5.30%
1993-94 2001-02
In ten years between
1993-94 and 2001-02,
aggregate household
expenditure on health
services increased by an
annual compounded rate
of 9.3%
Rising demand for quality healthcare
Corporatisation of Indian healthcare
Corporate hospitals 150
Private hospital beds 32% of total hospital beds
Only 2.5 million or .25%
of population insured
315 million people in India can afford
insurance
Health Insurance - A vast untapped market
Projected insured base in India (mn)
30
160
2005 2010
Projected insurance base2005 30 million
2010 160 million
Health Insurance - A vast untapped market
Source: India Country Commercial Guide 2002
Addressable population for preventive
healthcare check-ups 160 million
Year - on - year growth more than 20-25%
over 2001-2003
Preventive healthcare
By 2008 USD 4.5 billion opportunity employing 200,000 people*
Forms processing
Medical billing
Disease coding
Claims adjudication
Healthcare BPO - Promising dynamism
*Source: NASSCOM
Rural population of 650 million people
Telemedicine - Diversifying opportunity
Tap the large Indian landscape
The Indian Biomedical Devices Market
Size US$ 1.5 billion
Growing demand for medical equipment
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Growingpopulation
2.5%annually
Expandingworking
population group65%
by 2020
Improvinglife
expectancy
Age 15-542001 55%2010 59%
Demographic Advantage
23,000 Primary Health Centres132,000 Sub-centres
2,400 Community Health Centres
1500 urban health posts
1,200 ESI and PSU hospitals
117 tertiary medical colleges and hospitals
4,400 district hospitals
Urban
TertiaryCare
SecondaryCare
PrimaryCare
Rural
Infrastructure
Healthcare facilities - high quality at low cost
Edge in surgical treatment
Potential to earn USD 1 billion from medical travel
Medical Tourism
Cost of advanced surgeriesin India is attractively low compared to US
Cost Advantage
2,50,00030,000Bone Marrow Transplant
30,0005,000 - 7,000Heart surgery
5,00,00040,000Liver Transplant
IndiaTreatment
All figures in USD
US
Low in cost
High on quality
Quality Advantage
Services and facilities in India
Increase in 5% of GDP by 2010health spend
Increasing budgetary Over 20 % per annumallocation 2005
Union Budget Infrastructure status not conferred2005-06
Custom Tariff on Rates reduced from20% to 15%medical equipment
Policy Advantage
March 2005
Healthcare
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Indian Healthcare Federationc/o Confederation of Indian Industry
The Mantosh Sodhi Centre23, Institutional AreaLodi RoadNew Delhi - 110 003.
Tel 00 91 11 2462 9994-97Fax 00 91 11 2462 6149/2461 5693E mail [email protected]
Contact in India