The report helps businesses gain a unique insight into the socio-economic dynamics, and helps analyze how they affect healthcare systems and their evolution. It can serve as a valuable tool with actionable guidance for sales, marketing, R&D and business managers with industry related interests.
Four chapters cover the numerical and written analysis for the following topics: Economic Outlook (38 Key industry indicators), The Healthcare System (HC system structures), Reforms (restructuring, re-engineering or austerity efforts) and the Healthcare Market (Capital Equipment, Medical Devices, Disposables and Pharmaceuticals).
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- India is the 10th largest economy in the world and the 3rd largest by purchasing power parity (PPP). India’s GDP growth in 2015 averaged 7.3%, and is forecasted to continue rising gently the coming years, reaching 7.5% in 2017.
- Its GDP growth is used to its advantage to attract further foreign investments and business ventures.
- Institutional shortcomings continue to undermine India’s chances for long-term economic development. The government’s presence in the economy remains extensive through state-owned enterprises.
- The unemployment rate in 2015 was just over 8.1% and is expected to remain around this level in the next couple of years.
- The inflation rate in India in 2015 was close to 5%. It has experienced relatively steep inflation in the past 4 years (up to 9.9%)
- India has one of the fastest growing service sectors worldwide (9% annually since 2001).
- Despite of housing one of the highest numbers of billionaires worldwide, India’s income inequality is the lowest amongst emerging OECD nations and the BRICS.
The Healthcare System:
- Indian healthcare is a complex mixed public-private model, with limited government funded public healthcare, alongside pricier and urban-concentrated private providers.
- Faced with the constraints of extreme poverty and a severe shortage of resources, Indian hospitals have had to operate more nimbly and creatively to serve the vast number of poor people in need of medical care.
- The top causes of death in India in 2015 were coronary heart disease, diarrhoeal diseases and lung disease. The prevalence of coronary heart disease increased by 31% from 2010 to 2015.
- Healthcare spending as a percentage of GDP in 2015 was 4.85%, equivalent to €69,64 per capita. For a developing nation the total percentile expenditure of GDP is relatively average, yet very low compared to other BRICS.
- Per person, healthcare expenditure by the government on public health is 7 times higher in urban areas compared to rural areas.
- The Central Drugs Standard Control Organization (CDSCO) is the agency under the Ministry licensing pharmaceuticals and monitoring the safety and quality of medication and medical devices.
- In 2015 there were around 15,349 acute care hospitals, an approximately 50-50% split between private and public hospitals.
- The private sector employs 80% of the medical professional is India, and supplies 70% of the primary care in urban areas and 63% in rural areas.
- Challenges to Indian healthcare include:
Deficiency of infrastructure
Deficiency of manpower
Public hospital patient overload
Inequity of service quality
Highly above average OOP payments
- Recent reforms include:
Drugs & Cosmetics Amendments Bill (2015)
100% FDI in medical device sector (2014)
‘Make in India’
Drug Price Control Order (2013)
- Despite the low healthcare expenditure, the Indian medical electronics market is expected to grow at a rapid pace. India represents around 1.5% of the global medical device market. In Asia, it is the 4th largest market.
- About 25% of the medical market is supplied by local, while the latter 75% is imported (medium to high tech products).
- The medical tourism market is estimated to generate €2.6 bn annually by 2018.
- Growth drivers include: Increasing population, expectations, demand and purchasing power due to growing middle class, increasing prevalence of lifestyle disease, and cheaper treatment options.
- With the growing trend towards central purchasing, customer loyalty has decreased.
- India is among the top 5 emerging pharma markets and is poised to grow to about € 40 bn by 2020.
- The capital equipment market is expected to have a sustained growth of about 8 to 12% during the upcoming 2 years.
- India’s medical device market is currently the 4th largest market in Asia. With projected growth rates of 12 to 16% for the next 5 years.
- The consumables market will experience a growth of about 15% from 2014-2020. This growth trend will be affected however, due to the increasing share of local low cost competitors and low cost imports.
- The need for healthcare to be accessible and affordable, i.e. universal, is in the forefront of healthcare market development.
- The reality of the Indian healthcare organization, its hierarchical structure, and fore mostly its limited budget and vastly poor patient population, are factors often ill-matched by the supplying medtech manufacturers/suppliers.
Includes tables centralizing all relevant data on socio-demographics, macroeconomics and national Healthcare.
National Care Provision data:
Provides an overview of the Healthcare demographics: Nation Care provision data, Intensive Care units, Operating rooms, Emergency Rooms, Hospital services, Healthcare professionals.
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