Healthcare in India- Potential for Growth

Chitra Ramakrishnan

Healthcare implies treatment, management and preservation of health through services, direct and complimentary; all goods and services designed to promote health including manufacturing, scientific and life style services related to preservation of health and management of illnesses. Health care includes medical infrastructure, medical equipments and diagnostic services, life sciences, bio-technology, diagnostic tools & substances, drug manufacturing and delivery, hospitals, nursing homes, clinics, laboratories and health care plans and insurance.

The healthcare market is growing at the rate of 10 to 12% per year. To bring about a small improvement in healthcare infrastructure in terms of hospital beds alone, i.e. to increase the bed density to at least two per thousand population, India needs an investment of US $14.4 billion by 2025 according to FICCI-Ernst & Young report.

The scarcity of beds is just one indicator of the extent of demand-supply gap that exists in the healthcare industry in India. In terms of equipment, services, pharmaceutical drugs, treatments, therapies and other facilities, India is experiencing a massive shortage.

As Indian population grows seasoned and aware of the healthcare aspects and ups the demand for quality service in this sector, demand will grow further; not just for immediate healthcare, but for a range of services which will form the healthcare ecosystem.

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