Healthcare sector to reach USD 372 billion in 2022: Niti Aayog

By VARINDIA - 2021-03-31

Healthcare sector to reach USD 372 billion in 2022: Niti Aayog

India's healthcare sector is one of the largest sector to reach $372 billion in 2022, at a compound annual growth rate (CAGR) of around 22% since 2016, as per the report by NITI Aayog.

 

The sector has the potential to generate 27 lakh jobs in the country between 2017 and 2022. The report outlined a range of investment opportunities in the country''s healthcare sector across hospitals, pharmaceuticals and medical devices.

 

The report outlined a range of investment opportunities in India''s healthcare sector across hospitals, pharmaceuticals, medical devices, home healthcare solutions and in areas of new-age technologies.

 

According to the report, FDI inflows in the healthcare sector in India increased from USD 94 million in 2011 to USD 1,275 million in 2016, a jump of over 13.5 times. It also pointed out that in the hospital segment, the expansion of private players to tier-II and tier-III locations, beyond metropolitan cities, offers an attractive investment opportunity.

 

According to the report, around 65 per cent of hospital beds in India cater to almost 50 per cent of the population concentrated in Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, Telangana, West Bengal and Kerala.

 

"The other 50 per cent of the country''s population living in the remaining 21 states and 8 Union Territories has access to only 35 per cent of hospital beds. As per the report, non-metros (Tier-II and III cities) are expected to recover faster than the metropolitan areas and tier-I cities, as they were less badly hit by the COVID-19 outbreak.

 

The report was released by Niti Aayog Member V K Paul, CEO Amitabh Kant, and Additional Secretary Rakesh Sarwal. The COVID-19 pandemic has not only presented challenges but also several opportunities for India to grow. All these factors together make India''s healthcare industry ripe for investment," Kant wrote in the foreword.


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