GLOBAL BUSINESS PROJECT II FINAL REPORT Submitted by: Anjali Raj

10BSUHH010006 Shikhar Katuva- 10BSUHH010062 Submitted to: Prof.

Girish G P Date of Submission: 31st March 2012We confirm that this is our
own report and is the final version. We have acknowledged each useof words or
ideas of another person whether written or oral.
2. Healthcare Industry of India 2 Contents 1. Executive Summary 3 2.
Introduction 4 3. History 5 4. Objective & Motivation 7 5. Wellness Industry 8
6. Healthcare Industry 9 7. Regulators 11 8. Key Players 12 9. Porters Five
Force Analysis 13 10. SWOT Analysis 15 11. PESTLE Analysis 16 12.
Conclusion & Recommendation 19 13. Appendix a. Medical Tourism 20 b.
Major Healthcare Issues 21 c. Key Developments 22 14. References 24
3. Healthcare Industry of India 3 Executive SummaryHealthcare Industry
of India is a project aimed at analyzing the Healthcare Industry of Indiaand its
future prospects. Healthcare can be Allopathic, Ayurvedic, Homeopathy, Unani,
Siddha,Naturopathy etc. Our project focuses on Allopathy as that is a
mainstream medicine in India.Healthcare contributes to 5.25% of GDP
expenditure. There is a very large market potential inIndia. Only 20% of this
industry potential is tapped. The government cannot afford to spend
thenecessary amount and hence it opens up a large area for private
investors.The factors for the boom of this industry are more options in
healthcare financing, growingeconomy, saturation of other sectors like IT and
retail and the different models of healthcaredelivery.The key players of this
industry (on basis of number of beds) are Apollo, Fortis, Manipal,Aarvind Eye
care, Max Hospitals etc. The regulators of this industry are Government of
IndiaDirectory of Health and Family Welfare, Ministry of Health and Family
Welfare, Indian Councilof Medical Research, Central Drug Standard Control
Organization.Porters Five Forces Analysis, SWOT Analysis and PESTLE were
done. Indian environmentprovides a very good opportunity for private players
in healthcare. The growing population witha much deeper pockets and low
government participation has lead to higher demands wherepeople are willing
to pay high costs for proper medical care. Indias unmet demand forhealthcare
facilities, rapidly changing demographics, increasing private spending on
healthcare,and a readily available intellectual pool are fuelling the growth of the
healthcare industry andmaking it highly attractive for investors
4. Healthcare Industry of India 4 IntroductionThe health care industry is a
sector within the economic system which provides products andservices like
diagnosis, treatment and prevention of diseases, illness and injury. Health care
isdelivered by practitioners from the fields of medicine, nursing, psychiatry,
dentistry and others.Allopathic healthcare & Ayurveda are the two main forms
of healthcare practiced in India.Homeopathy is also practiced but in
comparatively lesser amounts.Ayurveda, the oldest most comprehensive
scientific discipline is known as the knowledge of lifeand longevity. It has been
preached and practiced since the ancient times. Ayurvedic medicineshave ways
to totally rejuvenate the body and mind. All ayurvedic medicines are
botanicalpreparations and its a holistic approach to well being of an
individual.Homeopathy on the other hand is a science developed by a German
physician, Dr. SamuelHahnemann. It is based on a principle like cures like.
It means that any substance whichproduces symptoms in a healthy person can
cure similar symptoms in a sick person.Healthcare can be through products or
services and can be provided privately or publicly.Healthcare sector is said to
be the sector which will largely influence the economic growth of thecountry
along with IT and Education sector. This sector will generate 40 million new
jobs and200 billion in revenue by 2020.Private healthcare, with hospital chains
exploring the markets in tier II cities and metros is anemerging part of the
healthcare sector. Also, the PPP model helps in improving the
healthcareprovision of India through development and delivery of low cost,
basic healthcare services.Since the healthcare industry is highly fragmented, the
industry is divided among many differentcompanies. Price levels cannot be
influenced by one player as no single firm has large enoughmarket share to
influence price.The primary demand drivers of the industry are advances in
medical care and technology,increasing life expectancy, patients demanding
more services and breakthroughs & populationgrowth rate. The drivers of
profitability are effective management of patient demand, obtaininggrants and
funds & referring patients to the most cost effective providers.Access to health
care varies in different countries owing to the influence by the social,
economicand judicial influence. As in, the health care industry is distributed
among market participants insome places while its controlled by the
Government at many. Anyhow, according to the WHO(World Health
Organization), for the smooth functioning of the health care industry in
anycountry, there has to be a robust backing on the financial grounds.Also,
health care forms the pillars of the national economy. Health care is one of the
worldslargest and fastest growing industries. Our main focus for this project is
Allopathic care in India.
A country of rich culture
and heritage. Where there was man, there was need formedicine. Medicine
today is a cumulative knowledge gathered for centuries. India, due to herancient
knowledge and practice initiated the system of healthcare not just through the
physicalailment of the patient but also the environment and other
elements.Unlike modern medicine during those times, medicines were dealt
with plants, minerals, stars,spirits and voodoo. Treatment was done mainly by
priests, herbalists, sorcerers and magicians.AyurvedaAyurveda has its origin in
the Vedas, particularly the Atharva Veda. It is connected to the Hindureligion.
Ayurveda originated from the 114 hymns of the Atharva Veda. It possibly dates
back to2000 BC. This system of medicine was received by Dhanavantari- the
God of medicine fromBrahma.The present knowledge of Ayurveda is by the
texts of Charaka, Sushruta and Vaghbata.HomeopathyHomeopathy was
founded by Samuel Hahnemann, a German physician in 1790. It was based
onthe law of similars. The law of similar was utilized by many cultures like the
Chinese, Greek,Mayan, Native American Indians and Asian Indians. But it was
Hahnemann who developed asystematic medical science out of it. The first
Homeopathic school was founded by his studentsin the US during late 1800s.
Homeopathy gained recognition because it succeeded in treatingdisease
epidemics like cholera, scarlet fever, yellow fever and typhoid.AllopathyIn the
1600s, under the reign of the Emperor Akbar, allopathy found its way in India.
However,after 300 years, recognition of allopathy, as a form of medicine came
under the Indian MedicalDecree in 1960.In between the 50s and the 80s,
healthcare facilities increased substantially, but the number oflicensed
practitioners per 10,000 individuals decreased due to fast population growth.In
the early 70s, vaccinations against diseases like polio and small pox became
prevalent. By theend of the 70s, small pox was declared to have been eradicated
from the country.The end of 80s saw the industry moving towards diagnosis
before treatment. Medical educationincreased and industry began to grow. This
was the time the incidents of cancer increased andposed problems to the
medical community all over the world and the country. There were 128medical
colleges by the end of the 80s.
care Industry of India 6In the 90s, we struggled with HIV with a
mortality rate of over 80% in India. Late 90s saw a risein health care costs.
During this decade, Indian healthcare grew at a CAGR of 16%. In 1991,India
had 27,400 dispensaries, 22,400 PHCs and 11,200 hospitals. The primary
health centersrelied mostly on trained paramedics. Also, in 1991 there was
uneven distribution of medicalfacilities in the country. Indias most populated
state UP (over 139 million) had 735 hospitalswhereas Kerala (29 million) had
2053 hospitals. In 1992, there were 7,300 hospitals, out ofwhich 4,000 were
owned and managed by the Govt. Another 2,000 owned and managed
bycharitable trusts when the other 1,300 were private sector hospitals and in
turn, very smallfacilities. The major hospitals were a part of the Govt. medical
colleges. Lack of sophisticatedmedical facilities was common in private
hospitals, but the pace of development was very quick.Today, it is the largest
service sector in India.
f India 7 ObjectiveTo analyze the Healthcare
Industry of India. MotivationHealthcare is one of Indias largest sectors, in
terms of revenue and employment.The private sector accounts for more than
80% of total healthcare in India.Health is a sector which will never get affected
by recession.
Healthcare)Indias market for "wellness" services is estimated at $2.2 billion,
and projected to grow at anannual rate of 30-35 percent, as per FICCI and Ernst
and Young.Indian youth comprises over 34% of the total population. It is
expected to cross over 400 millionby 2015. It forms the core target group for
wellness products and services (other than healthcare). The population in the
urban areas constituted 28% of total population 2001 and is expected toincrease
to 37% in 2025. Urbanization leads to higher awareness and higher availability
ofwellness products. Stress and lifestyle diseases in the urban areas are driving
the growth forproducts and services in the enhancement and curative
segments.Exposure to global beauty and fashion is another driver of wellness
growth. Societys obsessionwith celebrity culture is resulting in peer pressure to
look good.
hcare Industry AnalysisThe
Healthcare industry comprises of both products and services. The products are
in the form ofdrugs, healthcare equipment & health insurance. Our study
focuses on the service segment of thehealthcare industry. Services in the
healthcare industry can be diagnostic services, small scaleclinics & full fledged
hospitals.The Indian healthcare industry is projected to grow 23 % per annum.
There would be increase innumber of public and private healthcare facilities
accounting for another $6.7 billion. Thisindustry will touch $238.76 bn by
2020.The expenses of this industry comprise 5.25% of the GDP of the country.
In a few years it isprojected to reach 6.2% within the next few years.Growing
population, cheaper treatment costs, increasing lifestyle related health issues,
thrust inmedical tourism, improving health insurance penetration, government
initiatives, increasingdisposable income and focus on PPP are driving factors
for the growth of healthcare sector inIndia.Research says that only 12% of the
industry potential has been tapped in our country which tellsus that the scope
for growth is very large.The healthcare industry shows high opportunity for
economies of scale. Narayana Hrudayalayais the ideal example as to how
economies of scale can be achieved in this industry. Through lowcost measures
and continuous innovation he has made it a big success.There is no target
customer for this industry. The entire human population is their target. Thereare
hospitals at every income level targeting people accordingly. The sad part is
that the specialtyservices are out of reach for a large amount of our population.
Even basic health services arelacking amongst the rural population. The
government is taking initiatives but for a country likeIndia its not enough.Till
few years ago, healthcare was the responsibility of private practitioners and
doctor ownedhospitals. Large hospitals were run mostly by the government.
corporate hospitals. Today, the rapid corporatization ofthe industry is due to the
movement towards organized healthcare.The entry barrier in this industry
depends on the scale you look at. For a small scale clinic, thebarrier is limited to
expertise and basic equipment whereas for a full fledged hospital,
theinvestments are very high. Expertise and investment are the two main entry
barriers in thisindustry. Exit barrier is high specialized assets and sunk cost.The
factors for the boom of the Healthcare Industry of India are: Strong Indian
Economy : India, the 4th largest economy in terms of Purchasing Power Parity
will overtake Japan and reach the 3rd place by 2020. Opening up of new
opportunities in Healthcare Delivery: Different models are coming up in
Healthcare e.g. PPP model, Diagnostics, Family Clinics etc. More options for
healthcare financing: Health financing is becoming a preferred tool to cover for
most healthcare expenditures. It involves arranging for payment of a health
service that has been arranged under the financing contract. FDI in health
insurance has rose from 26% to 49% which would result in surge of
international players & even more customized offerings targeting all sections of
society. Saturation of other sectors like retail & IT
thcare Industry of India 11 RegulatorsThere are 4 main regulatory
bodies in this Industry: Government of India Directory of Health and Family
Welfare Indian Council of Medical Research Ministry of Health and Family
Welfare Central Drug Standard Control Organization
Of Company Presence beds Chennai, Madurai, Hyderabad, Aragonda,
Kakindada, Kolkata, Apollo Ahmedabad, Mauritius, Pune, Raichur, Karur,
Karim Nagar, Hospitals 8,500 Mysore, Bhubaneswar, Dhaka, Visakhapatnam,
Bilaspur, Enterprise Ltd Ranipet, Ranchi, Ludhiana, Indore, Bengaluru, Delhi,
Noida Aarvind Eye Puducherry, Madurai, Amethi, Kolkata Theni, Tirunelveli,
3,649 Hospitals Coimbatore, CARE Hyderabad, Vijaywada, Surat,Nagpur,
Pune, Visakhapatnam, 1,400 Hospitals Rajpur, Bhubaneshwar. Fortis Delhi,
Amristar , Mumbai, Bengaluru, Kolkata,Rajpur, Jaipur, 5,044 Healthcare Ltd
Chennai, Kota, , Mohali, Noida Max Hospitals 800 Delhi and NCR Manipal
Udupi, Bengaluru, Manipal, Vijaywada, Kasaragod, Group of +7,000
Visakhapatnam, Attavar, Mangalore, Goa, Tumkur Hospitals Apollo Manipal
Fortis Aarvind eye hospitals CARE hospitals Max hospitals
Power:Demand is exceeding supply:Indias demographics are changing,
economy is growing, there is a shift in the disease patterns &awareness of
health and fitness is increasing by the day. The demand for healthcare services
hasindicated a CAGR of 16%. India still falls short on various key health
indicators for e.g. ourhospital beds per 1000 stands at 0.7 whereas the world
average is 3.96. There is a big mismatchbetween demand and supply of
healthcare infrastructure and services in India. India needs to addover a million
beds to increase its ratio to 1.7.Medical Tourism:The increase in medical
tourism in India has led to reduction on the dependence of Indianhospitals on
local customers.Suppliers Power:Equipment Players:The competition in the
equipment market is on a high. Consumables and disposable equipmentare
made locally whereas high value equipments are made by international
companies. Thecompanies have expanded their operations to the Indian market
and established assemblycenters. The government is encouraging the growth of
this market. High competition is turningout to be beneficial for the
hospitals.Rivalry among Competitors:Increasing Competition:The drugs and
pharmaceuticals sector has attracted FDI worth $1.66 billion. Hospitals
anddiagnostic centers have received FDI worth $761.18 million. Presently the
market is fragmentedbut the market is changing. The sector is organizing into
distinct sectors which are one morereason the competition is increasing.
Investments are increasing by the day as the potential in thismarket in India is
very high. Only 20% of the market is tapped.Low Competition from Public
Sector:The share of private sector in India is 78% which is mostly out of reach
for the rural and poorpopulation of the country. An estimate is made that out of
the $25.7 billion required to increasethe number of beds, the government is
contributing only 15-20% of the amount which is a largeopportunity for private
players.
Government Reforms:The government does not have the financial strength for
large scale investments in the healthcaresector, government is encouraging FDI
in the country.Barrier for Foreign Firms:Even though government is
encouraging FDI in the country, there are very few FDI hospitals inIndia. Other
forms of funding are more prevalent. The reason for this can be long
gestationperiod of investments and relatively low rate of return.Threat of
Substitutes:Alternative medicines:Alternative medicine includes Homeopathy,
Ayurveda, Unani etc. They are safer and have lesserside effects as compared to
allopathy. The society is moving towards alternative medicine mainlydue to the
advantage of painless procedures, lesser side effects, organic medicines
etc.Medical Tourism has seen the shift of people towards Ayurveda. The age
old practice is gainingpopularity all over the world. There has been a rise in the
amount of people who come to India toundergo Ayurvedic treatments. Force
High Moderate LowBuyers Power Suppliers Power Internal Rivalry Entry
Barriers Threat of Substitutes
Services are available at a low cost India has a large supply of qualified doctors
India has a strong presence in good quality and advanced healthcare. We also
have a high success rate in operations. Doctors reputation on the international
front is very high. Medical TourismWeakness Delivering healthcare in India is
costly. We have a limited access to life saving medicines A normal middle class
family cannot afford the specialty healthcareOpportunities Healthcare Industry
has good support from the government. Major Pharmaceutical companies to
choose India as the preferred hub for their global R&D and manufacturing
operations The growth of middle class in the country has resulted in fast
changing lifestyles in urban and to some extent rural centers. This opens a huge
market for lifestyle oriented drugs, which has a very low contribution in the
Indian marketsThreats Primary Health Infrastructure is the responsibility of the
government. Cost of discovering new drugs is very high. Factor High Moderate
LowStrength Weakness Opportunities Threats
ExpenditurePublic expenditure on health is lower than in other developing
countries as a result, thehealthcare industry is highly dominated by the private
sector. The Government facilitates thefunctioning of the industry and helps
attract foreign investors through investor-friendly policiesand tax incentives.
Government hopes to provide innovative drugs, expand facilities ofhealthcare
insurance, and provide modern medical equipment and better services.
Byimplementing Telemedicine in India, one of the biggest healthcare projects
in the world, it wantsto revolutionize the delivery of healthcare services using
information technology andcommunication.Private InvestmentThe Government
is also encouraging public-private partnership. It is promoting medical
tourism.Indian government is working toward delivering effective and
affordable healthcare services tothe vulnerable sections of population residing
in rural areas through its National Rural HealthMission. The government plays
a critical role in prioritizing the healthcare industry in thedevelopment agenda
of a country.The countrys recognition of product patent for pharmaceuticals is
expected to lure more foreigninvestors into using the outsourcing opportunities
in the country. The initiative taken by thegovernment to set up additional
hospital schemes will create further opportunities for theindustry. Hence,
Indias healthcare industry is anticipated to grow tremendously in the next
fiveto ten years.Economic EnvironmentGrowing incomesMuch of Indias
healthcare expenditure comes from private patients, primarily the higher-
incomehouseholds. The proportion of households in the low -income group has
declined significantly.Rising incomes are leading to a rise in the rich and
middle-income groups, and they are expectedto form 49 % of total households
in financial year 2010, as compared with 33 % in financial year2004, thus
driving growth. A survey conducted by NCAER, an independent economics
researchagency, suggests that per-capita expenditure on healthcare rise with
higher education levelsSignificant investment opportunities are present for the
private sectorLimited government investment provides significant opportunities
for private healthcare serviceproviders as large investments are required to scale
up the Indias healthcare infrastructure. Our
investment. The government is likely to meet only 15-20 % investment in
hospital beds. Assuming 10-15 % commitment from international donors,there
would be a shortfall of 70 %, which can be funded by private companies.
Presently, themajority of healthcare services in India are provided by the private
sector. Public spending onhealthcare will continue to rise, but chances of large
and sustained increases are low.Socio-cultural EnvironmentIncrease in the life
expectancy and ageing populationIn the domestic market, health spending will
be sustained by two demographic trends namelyincreased life expectancy and
an ageing population. In India, the proportion of the populationaged 65 years
and over is also on the rise. Although the rate of ageing in India is slower than
thedeveloped countries, the large size of our population makes any increase
significant in terms ofnumbers, and hence also in terms of market potential.A
shift to lifestyle-related diseases will be the driver for higher healthcare
spendsThe shift in disease profiles from infectious diseases to lifestyle-related
diseases is expected toraise expenditures for treatment. On the basis of
demographic trends and disease profiles,lifestyle diseases cardiovascular
diseases, cancer and asthma have become the most importantsegments, and in-
patient expenditure is expected to represent nearly 50% of total
healthcareexpenditure.Higher Population and LiteracyIndia has the 2nd largest
population in the world. It is estimated that by 2050 we will be havingthe
largest population in world. This factor displays a huge opportunity for the
health sector interms of sheer volume. Also there is huge urban shift in India the
private hospitals are mainlylocated in the urban areas and there is rural to urban
shift of 26% which greatly increases the sizeof the target market for the private
players. Rising literacy in India is improving healthawareness, about lifestyle-
related diseases which tend to be more costly to treat thaninfections.Global &
Technological EnvironmentHealth infrastructure in the West.The healthcare
systems in Europe and the United States are under severe pressure. The
NationalHealth Service (NHS) in the UK has a long list of patients waiting for
over a year for surgery. Inthe US the issues are different. Around 50 million
citizens are uninsured. The shortage ofparamedical professionals such as nurses
has aggravated the situation. Patients from the US arenow regularly coming to
India.
HealthcareIndia offers highly cost-competitive medical treatment and
technological advances in areas suchas cardiology, cosmetic, orthopedic
surgery, eye care, dentistry, and preventive health checkups.India offers world
class cardiac bypass surgery, organ transplants, hip replacements,
cosmetic,dental surgery and vision correction. The associated costs of surgery
are also low. This bringsdown the overall cost of treatment. In India, diagnostic
checkups are comparatively inexpensive.India also has the potential to emerge
as a hub for preventive health screening. At a private clinicin London a health
check-up for men that includes blood tests, lung tests, electrocardiogramtests,
chest X-Rays and abdominal ultrasound costs around 350 British Pounds. In
comparison, acomparable check-up at a clinic operated by Delhi-based
healthcare company Max Healthcarecosts US$ 84. A Magnetic Resonance
Imaging (MRI) scan costs US$ 60 at the Escorts Hospitalin Delhi as compared
to US$ 700 in New York. Factor High Moderate LowPolitical Economic
Socio-Cultural Technological
analysis concludes on the note that Indian Healthcare Industry is an ideal place
for privateplayers to invest in.Its contribution to GDP is forecasted to increase
to 6.2% within next few years. There is 80%market potential left to
tapped.Sustenance in this industry is not very difficult as the potential is so
large that for a long timenow there will be no internal rivalry. Players survival
will be easy if they approach the rightbusiness model. There are various models
available in the market like PPP, small clinics, superspecialty hospitals etc. The
only criteria for success are the human resource involved. QualifiedHuman
Resource is available in plenty in India. There is an emerging threat from
substitutes likeAyurveda and Homeopathy but in our country these forms of
medicine are always taken as a lastresort. Trends are changing but it will take
time for them to become perfect substitutes.The weakness of this industry is
basically the high delivery cost and hence the unavailability ofgood specialized
healthcare for the people low on the income scale. This is the major factorwhich
counter reacts to the numerous strengths of the industry.The government is
encouraging investment in Healthcare which makes it easier for thecompanies
as the process will be comparatively hassle free. Every force is in favor of
investors.These healthcare procedures save lives and improve quality of life.
Millions of test, operations,and other healthcare services will happen regardless
of world events, economic, political, orotherwise. When people are sick, theyll
do anything in their power to get better. And it doesntmatter one bit what else
is happening on the planet. Its one of the reasons investors should lovethe
healthcare sector. The population is aging and you dont need a doctorate in
demographics toknow that older people consume more healthcare as they age.If
asked, we would say that investment in this industry is the right thing to do in
the currentscenario. It is a sector not affected by economic cycles, where
demand is much higher thansupply and a necessity for our country.Investing in
this industry will not only give enormous returns to the investor. It will also be
agreat help towards improving the healthcare situation in our country.
Tourism means the process of leaving home and going abroad or a different
place formedical care.Medical tourism has become one of Indias major sources
of income in the past few years. Indiawith its well educated, English speaking
medical staff, diagnostic conveniences, state of the artprivate hospitals and
comparatively low cost healthcare services, has emerged as a destinationfor
medical tourism. The fields in which Indias hospitals excel are cardiology,
jointreplacement, hip replacement, gastroenterology, ophthalmology,
cosmetology, orthopedics andurology.Medical Tourism is growing at the rate of
30%. It will be a $200 billion industry by 2015.6,00,000 patients travelled to
India last year for medical treatment. Corporate hospitals arecommenting that
the figure is going up every year.A Mckinsey Report says that only 9% of
travelers seek lower costs as their primaryconsideration. 15% seeks faster
medical services , 32% seek better healthcare, and 40% seekadvanced
technology.India offers medical services at 1/10th the cost of an American or
British hospital. A BusinessWorld report says that a heart bypass surgery costs
$144,000 in the United States , $25,000 inCosta Rica, $20,000 in Mexico,
$24,000 in Thailand, $13,500 in Singapore and $8,500 in India.Along with the
cost factor, the quality Indian Hospitals provide is excellent.Hospitals are not
the only ones affected by medical tourism. Hospitality, Pharmaceutical
andMedical equipment industry are greatly affected.Medical tourism Ayurveda
has attracted thousands of tourists to our country. Authentic andmonitored
Ayurvedic programmes are sought to heal, cleanse , relax and rejuvenate. The
mostcommon place for Ayurvedic treatments in India is Kerala. The benefits of
Ayurveda are beingenjoyed by medical tourists coming from countries like the
US, South America, UK, Germany,France, Sweden, Canada, Netherlands &
Europe . Many other wellness seekers are also comingfrom countries like
Oman, Jordan, Egypt, Australia, New Zealand, Saudi Arabia, Kuwait,
UAE,Malaysia, Singapore, Korea, Japan, etc.Combination of Ayurveda, Yoga
and Meditation is the most common package available tomedical tourists. This
package also takes the tourist through the beauty of the country asAyurveda,
Yoga and Meditation centers are present mostly in the holiday destinations of
thecountry.
an African Sub Saharan Region , 28% of the children below the age of 3 are
malnourishedwhereas in India, 40% are malnourished ! Malnutrition leads to
lack of cognitive, social ,physical development of a child which in turn is lower
productivity for the country once he is anadult.High Infant & Maternal
Mortality Rate:Before the age of 1, 1.72 million children die every year. From
202 per thousand in 1970, it hascome down to 50 per thousand in 2009 but the
rate is slowing down. India has one of the highestMaternal Mortality rates in the
world. It is 1 in every 140 women.The reason is lack of primary health facilities
in the rural parts of India. Lack of care for thewomen during pregnancy is also a
reason for High Infant Mortality.Diseases:Hepatitis, Dengue, Malaria,
Tuberculosis, Pneumonia continue to threaten the country due toincreased
resistance to drugs. India is ranked 3rd among the most HIV affected countries.
Indiansare also at a risk of atherosclerosis and coronary heart
disease.Inadequacies of Safe Drinking water & Poor sanitation are the causes of
most of the healthcareissues especially on the rural front.
y Developments According to the
Rural Health Survey report 2009, the rural sector has added 15,000 health sub
centers and 28,000 nurses and midwives in the past 5years. Primary Health
Centers has increased by 84% increasing the number to 20,107. From $2.7
billion in 2008, Indian medical technology is expected to reach $14 billion by
2020. Frontier Mediville, the countrys first healthcare SEZ is being set up by
Frontier Lifeline Hospital at Elavoor, near Chennai. The substantial demand for
specialty healthcare is driving players such as Apollo and Fortis to tier II and
tier III cities. Big groups are targeting new segments such as primary care and
diagnostics. The preventive healthcare segment in India is being driven by
demographics, health awareness and increasing capacity to spend.
Organizations like Narayana Hrudalaya and the Mazumdar Shaw Cancer Center
are entering into computer based bio surveillance projects. These generate data
about diseases and create healthcare databases in rural areas. Medical Tourism
is booming in the country with over 6,00,000 patients travelling to India for
health care. Narayana Hrudayalaya plans to expand its presence in the next 3
yrs to 7 more cities which will take the number of hospitals to 14 An Australian
medical devices company called Cochlear Ltd plans to set up its wholly owned
subsidiary in India. Cochlear will provide better patient and product support.
$15 million is the investment planned. The drugs and pharmaceuticals sector
has attracted FDI worth $1.70 billion between 2000 to 2010. Hospitals and
Diagnostic centers have received FDI worth $786.14 million. Wockhardt plans
to invest up to $158.32 million and Fortis Healthcare plans to invest $146.81
million. GE Healthcare plans to invest US$ 50 mn to set up more facilities for
developing diagnostic services. Manipal Hospitals plans to invest US$ 45.23
million in the next three years to take its capacity up to 8,000 beds.
February 2011) Sector FDI inflow (US$ million) Hospital and diagnostic
centers 998.11 Medical and surgical appliances 387.52 Drugs and
pharmaceuticals 1,882.30Source of the table: Department of Industrial Policy &
Promotion (DIPP)
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