Healthcare Industry

The Indian healthcare industry is a US$ 35 billion industry and is anticipated to reach US$ 75 billion by 2012. This sector thus provides a lot of potential as Indians are becoming more health conscious and vying for better amenities. To address the increasing demands of this sector, India needs about US$ 50 billion annually.

 

The healthcare system is practically non-existent in rural India. With a rise in India's economy and rural infrastructure, the healthcare industry is stated to grow exponentially in this area. Thus, there is a need for investment in infrastructure, equipment, and technological areas.

 

The public healthcare system is overburdened and also lacks technological support. The entry of private equity has enhanced the healthcare industry further. In addition, healthcare majors have released IPOs (initial public offerings) trying to tap the potential of this field further.

 

With growing consciousness about the health hazards and illnesses that can befall them, Indians are recognizing the benefits of health insurance. Thus, this sector shows lots of promise. The health insurance industry is going to reach US$ 5.75 billion by 2010 according to a study by the Chamber of Commerce, PhD department.

 

Also, with the stress- and lifestyle-related illnesses on the rise, this sector is gaining more popularity. International giants, such as AIG, have partnered with the Tata group. Other such collaborations are Bajaj Allianz and Aviva. More people are going for insurance to help secure their healthcare needs. Thus, this industry is a major investment area.

 

The pharmaceutical industry is also gaining in prominence. With skilled labor available and low research costs this is a nice investment option. The production costs and technologically sound infrastructure make it a viable option.

 

Indian healthcare systems like ayurveda and homeopathy are increasingly gaining prominence overseas. More patrons abroad are going for these alternate therapies as they are completely natural and have no side effects. As they are derived from plant extracts and have been in existence for a long time, more people are recognizing the potential of this field. Thus, this offers good scope.

 

Another area for investment is the research industry. With a huge talent pool and the rise of biotechnology and bioinformatics in India, this offers tremendous growth prospects.

 

Yet another area is the export of medical equipment to India. There is a demand for more technologically sound instruments in India. With the rise of high-end hospitals, this offers immense prospects. And with patients vying for quality healthcare facilities and hospitals this is an expanding field.

 

India is also a rising destination for medical tourism. With affordable medical expenses and a sound technology in place, this is a growing sector. This bodes well for the healthcare industry in India.

 

There are no inhibiting factors for foreign investment in this industry unlike other industries. The absence of regulatory laws is an encouragement. The government recognizing the need for technological advances in this sector has granted many relaxations.

 

Thus, overall the healthcare industry is going to grow exponentially and offers good investment potential for foreign investors.