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India’s healthcare sector is undergoing a rapid and massive change, with a projected worth of USD 132 billion by 2031. The sector is facing a major shift, fueled by the use of technology, the emergence of new competitors, and the evolving demands and preferences of the customers. In this article, we will examine some of the key factors, challenges and opportunities that are shaping the healthcare sector in India in 2023.
Factor 1: Telemedicine’s Rising Popularity
The Covid-19 pandemic has boosted the popularity of telemedicine, which is the delivery of medical assistance through digital channels. A report by Deloitte states that the telemedicine market in India was close to 830 million U.S. dollars in 2022 and is projected to grow at a CAGR of 24% from 2023 to 20302. Telemedicine has many benefits, such as greater access to healthcare, lower costs, better outcomes, and more convenience. The government has also backed the expansion of telemedicine by introducing the eSanjeevani platform, which has registered around 80 million tele-consultations till December 20223. Telemedicine is likely to become a dominant form of healthcare delivery in the future, particularly in rural and remote areas.
Factor 2: Expansion of Remote Monitoring Tools
Remote monitoring tools, such as wearables, sensors, and apps, are becoming more popular in India’s health protection system. They allow patients to manage their health at home and get timely care when needed. They also enable healthcare providers to check on their patients from a distance, saving hospital resources. The patient monitoring market in India is set to grow by 9.39% annually for the next five years. Some common remote monitoring tools in India are fitness trackers, blood pressure monitors, heart rate monitors, and glucometers.
Factor 3: Emergence of Digital Health Startups
The Indian healthcare sector has also witnessed the emergence of several digital health startups that are leveraging technology to offer innovative solutions for various healthcare problems. These startups are disrupting the traditional healthcare models by offering services such as online consultations, home diagnostics, online pharmacies, health insurance, and wellness programs. Some of the notable digital health startups in India are Practo, 1mg, PharmEasy, Cure.fit, and Policybazaar. According to a report by Nasscom, the Indian digital health sector received USD 2.3 billion in funding in 2022, a 70% increase from the previous year. The report also stated that the sector has the potential to create 65 million jobs and contribute USD 25 billion to the GDP by 2025.
Obstacle 1: Inadequate Infrastructure and Human Resources
India’s health maintainance industry faces many challenges despite its growth and innovation. One of the main challenges is the lack of infrastructure and human resources in the public sector. India has fewer hospital beds, doctors, nurses, and paramedics than the global average. The Covid-19 pandemic has worsened the situation, causing overcrowding, shortages, and delays in healthcare delivery.
Obstacle 2: Low Penetration of Health Insurance and High Out-of-Pocket Expenditure
The Indian medical assistance network struggles with low health insurance coverage and high out-of-pocket spending for healthcare services. The National Health Accounts 2016-17 show that only 29% of Indians had any health insurance, while the rest paid from their own pockets. The out-of-pocket spending for healthcare in India was 58.7% of the total health spending, much higher than the global average of 18.2%. This causes financial distress and poverty for many people, especially the poor and the vulnerable. The government has introduced several schemes, such as the AB-PMJAY, to offer health insurance to the disadvantaged groups, but these schemes need better coverage and implementation.
Prospect 1: Rising Demand for Quality and Affordable Healthcare
The Indian medical assistance network has a great potential due to the increasing consumer demand for better and cheaper healthcare. This is driven by higher incomes, urbanization, and consumer awareness. The consumers want healthcare services that are tailored, convenient, and reachable for them. They are also ready to pay more for quality healthcare, which boosts the private sector in the industry. A report by IBEF says that the private sector makes up 74% of India’s total healthcare spending, and may reach USD 133 billion by 2022. This creates a big opportunity for the current and new players in the industry to grow their market and revenue.
Prospect 2: Government Initiatives and Policies to Support the Healthcare Sector
Another prospect for the Indian health protection system is the government initiatives and policies to support the growth and development of the sector. The government has recognized the importance of healthcare as a key driver of economic and social development, and has taken several steps to improve the healthcare infrastructure, access, and affordability in the country. Some of the major initiatives and policies of the government are:
- The National Health Policy 2017: It targets universal health coverage, lower out-of-pocket costs, and higher public health spending (2.5% of GDP by 2025)
- The Ayushman Bharat Digital Mission: It builds a digital health ecosystem that allows data exchange, system interoperability, and healthcare access for all.
- The PLI Scheme for Pharmaceuticals and Medical Devices: It enhances the local production and exports of pharmaceuticals and medical devices, and cuts down on imports.
- The National Digital Health Blueprint: It establishes a national digital health infrastructure that integrates various health information systems, and delivers comprehensive health services nationwide.
These initiatives and policies are expected to create a conducive environment for the growth and innovation of the Indian medical assistance network in the future.
Technology, new players, and consumer preferences are transforming India’s healthcare industry. The sector faces many challenges, like poor infrastructure and human resources, low health insurance coverage, and high out-of-pocket costs. But the sector also has opportunities, like growing demand for quality and affordable healthcare, and government support. The Indian healthcare industry is set to become a key sector in the country, and boost its economy and society.
