A TECHNO-ECONOMIC NEWS MAGAZINE FOR MEDICAL PLASTICS AND PHARMACEUTICAL INDUSTRY
Our 11th Year of Publication
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Cover Story

Indian Healthcare Industry  : Growing And Innovating High-Tech Area

The Indian healthcare industry which comprises of hospital services, healthcare equipment, health insurance, managed care and pharmaceuticals is projected to grow at 13% annually. It is estimated that the contribution of healthcare market in India to the country’s GDP will increase from 5.2% at present to 8.5% over the next ten years. Private healthcare will continue to be the largest component of healthcare spending A majority of Indians, particularly the middle and high income groups, have confidence in healthcare products and services offered by private hospitals rather than the government-owned healthcare agencies even though the private sector healthcare service is 60% more expensive than the government hospitals.
 
“MEDICAL PLASTICS DATA SERVICE” has been highlighting various aspects of the Indian Healthcare Industry in different ways. In order to give comprehensive overview about the recent developments in the industry, we are reproducing below some of the important news items that covers important aspects like Global Positioning of the Indian Healthcare Industry, Present and Future Scenarios in India, Presence of Multinational Companies, Technological Developments, Identified Gaps etc.


Global Positioning

India set to become a global hub

After information technology, bio-technology may be the next sector that the global market will identify India with. Bio-technology is not only proving to be of tremendous help to the agriculture sector, but, the pharmaceutical sector is also gearing up to match the global inclination towards bio-tech products.

The Indian pharmaceutical market is growing exponentially. In 1997, its value was a US $3 billion, and expected to rise to US $9 billion by the year 2005. A study by Mckinsey predicts an innovation - led growth of US $25 billion by 2010. Due to the rising costs of research and development abroad, companies from the US and Europe are looking for not only contract research in India but also either acquiring stake in smaller pharmaceutical companies or setting up joint ventures.

India also offers a suitable population for clinical trials because of its diverse gene pools covering a large number of diseases. The IT skill of Indian manpower also offer services in bioinformatics and data mining. 

[Business Standard dated 03/12/2003]


Indian Healthcare Industry : An Overview

Indian Healthcare Industry: Rising change in attitude by Middle Class

A RISING middle in come group and a change in attitude to-wards healthcare is driving the growth in the Indian healthcare industry. “The middle income group spends Rs 5,000 to Rs 10,000 on an average per person every year primarily on preventive care and health check ups and demand the best healthcare products and services. They visit multispeciality private hospitals even if they have to pay for the service from their own pocket,” said Dr C Janakiraman, CEO, Alticure Research.

The increasing per capita expense from this group is expected to support the growth of the Indian healthcare industry, he added. Population of over 100-150m demand high quality healthcare services at a competitive price. With this demand, new hospital projects in the private sector are mushrooming in the country. The impact is that the $17bn healthcare industry which comprises of hospital services, healthcare equipment, health insurance, managed care and pharmaceuticals is to grow at 13% annually.

The Central Bureau of Health Intelligence study also confirms that a majority of Indians, particularly the middle and high income groups, have confidence in healthcare products and services offered by private hospitals rather than the government-owned healthcare agencies.

According to Dr Janakiraman, private sector healthcare service is 60% more expensive than the government hospitals and these groups are willing to pay for it. To meet this growing demand and service standards, many Indian hospitals have begun to import the latest equipment and instruments.

This trend is expected to continue over the next five years. The driving force that creates the demand for medical equipment include increased income, growing health consciousness in the population, establishment of a number of super-speciality hospitals and specific diagnostic centers and favourable government policies like the reduction in import duties. “The medical equipment vendors are pushing out newer models every year some of which provide substantial newer features while some offer products with only marginal improvements.

[Ref: Economic Times, 07/01/2003]

Healthcare to contribute 8.5% to GDP by 2012: CII-Mckinsey study

The total healthcare market in India is expected to grow significantly and its contribution to the country’s GDP will increase from 5.2% at present to 8.5% over the next ten years. The expenditure on healthcare will more than double the year 2012 and the healthcare spending is expected to increase from Rs 86,000 crore at present to Rs 2,00,000 crore in the next decade, reveals a CII-Mckinsey study on healthcare. According to the study, private healthcare will continue to be the largest component of healthcare spending and is expected to double from 60,000 crore to Rs 156, 000 crore by 2012. Moreover, if health insurance cover becomes operative, the private spending will further go by an additional Rs. 39,000 crore.

With the rise in lifestyle diseases such as cancer and cardiovascukar, the spending pattern will change dramatically by 2012 with inpatient spending accounting for 47% of the private health care spending, up from the 39% at present, the CII-Mckinsey study has pointed out.

It also explains the current situation in the healthcare sector in India and has pointed out the poor performance of the sector in terms of coverage, purchasing and delivery in comparison to other developing countries such as Brazil, Thailand and Korea. Citing an example the study has pointed out that India has only 1.5 beds per thousand people in contrast to the average of 4.3 beds per thousand in other countries.

[Ref: Pharmabiz, Nov. 7, 2002]

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