Hospitals, Nursing Homes and Diagnostics Centres have an approximate market size of $28 billion in India, which makes it the second largest segment after Pharmaceuticals in the $100 billion Indian Healthcare Market. As the Indian healthcare market is expected to grow to $280 billion by 2020 at a Compound Annual Growth Rate (CAGR) of 22.9 per cent, the healthcare facilities including Hospitals, Nursing Homes and Diagnostics Centres too are expected to grow at a phenomenal rate.
The evidence of this growth is reflected in the Foreign Direct Investment (FDI) attracted by hospitals and diagnostic centres between April 2000 and March 2017, which stood at $4.34 billion, shows the data released by the Department of Industrial Policy and Promotion (DIPP).
Although barring few centres of excellence like All India Institute of Medical Sciences (AIIMS), the hospitals in public space in India leave a lot to be desired, many private hospitals have been at the forefront of innovation offering quality healthcare services at desirable costs when compared to their peers in the developed world.
Patients from many South Asian countries, Africa and the Middle East access private healthcare in India due to lack of facilities and doctors back home, giving rise to Medical Tourism in the country which has helped the healthcare industry earn $3-4 billion in 2017 and counting.
The number of foreign tourists coming to the country for medical purposes increased 50 per cent to 200,000 in 2016 from 130,000 in 2015. This number is expected to double in 2017 with several new initiatives like easier visas for medical tourists.