Bangalore, Dec 14, 2009: According to a report released by ASSOCHAM-Yes Bank in the last week of November, the Indian healthcare sector is expected to grow at 23 percent annually to become a $77 billion industry by 2010. This report has been prepared jointly by Associated Chamber of Commerce and Industry and Yes Bank. The report also stated that the annual growth rate of Indian healthcare sector was estimated at 9.3 percent between 2000-09.

 

Indian healthcare industry has witnessed phenomenal growth rate over the past few years and is expected to continue its fast pace. India spends almost five percent of its GDP on healthcare which is one of the highest in developing countries worldwide. The Indian healthcare market including retail pharmaceutical, healthcare hospital services, medical and diagnostic equipment and supplies, was estimated at $35 billion in 2008.

 

The domestic pharmaceutical industry has seen a growth rate of 14 percent in the last six years. It has reached $8.4 billion in 2007 and the demand for pharmaceutical formulation is estimated to reach $21.5 billion by 2010.

The report estimates the private health insurance sector to be worth $3 billion by 2010 from the present estimate of $1 billion. Also, the medical equipments and supplies sector has been estimated to reach $6.7 billion by 2010. Backed by the government support and private player interest, the medical tourism industry in India to be worth $1 billion by 2010.

Among all, the hospital Industry is estimated to contribute over $54.5 billion, thus contributing more than 70 percent of the total healthcare sector.

 

The report also points to the fact that corresponding growth in healthcare sector is yet to match the basic healthcare facilities in many other countries. For instance, the present number of nine beds per 10,000 in India is far behind the world average of 40 beds per 10,000.

The report in its conclusion stressed upon the presence of immense opportunities in the healthcare industry and the need for public-private partnership in healthcare sector to create a truly worldclass healthcare industry in India.