Indian healthcare sector to grow 3X over 2016-2022

India’s healthcare industry is expected to record a threefold rise, at a CAGR of 22 per cent over 2016-2022 to reach US$372 billion in 2022 from US$110 billion in 2016, as per an official announcement

September 17, 2019

The Indian healthcare industry is expected to generate over 40 million jobs in India by 2020

India supplies over 50% of global demand for vaccines, over 20% of global exports in generics

Pharma exports are expected to reach US$20 billion by 2020 from US$19 billion in 2018-19

There is immense investment scope for enhancing healthcare services penetration in India

India’s healthcare sector is expected to record a threefold rise, at a CAGR of 22 per cent over 2016-2022, to reach US$372 billion by 2022 from around US$110 billion in 2016. The announcement was made by the Minister of Chemicals & Fertilizers, Shri Sadananda Gowda, while inaugurating the Annual Health Conference “Pharma Med HD 2019 – Transforming the perception of Indian HealthCare Industry” in New Delhi on September 17. Meanwhile, the sector is expected to generate 40 million jobs in India by 2020. Healthcare has been one of India’s largest economic sectors, in terms of both employment and revenue.

The Indian healthcare industry is one of the most efficient and best-equipped in the world, apart from being one of the largest exporters of pharmaceuticals. India is the only nation with the largest number of US-FDA compliant pharma plants (over 262 including APIs) outside the US. There are also nearly 1,400 WHO-GMP approved pharma plants, and 253 European Directorate of Quality Medicines (EDQM) approved plants with modern technologies. India supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US, as well as 25 per cent of all medicines in the UK. 

India accounts for 20 per cent of global exports in generics. The nation’s pharmaceutical exports stood at US$19 billion in 2018-19 and are expected to reach US$20 billion by 2020. At this rate, the Indian pharmaceutical sector is expected to expand at a CAGR of 15 per cent in the near future while the medical device market expected to grow US$50 billion by 2025. Currently, India is counted among the top 20 global medical devices market. Meanwhile, the Indian healthcare delivery is counted among the most cost-effective globally that has led to a steady rise in foreign medical tourist arrivals into the nation.

However, the country currently ranks 145th among 195 countries in terms of accessibility of healthcare among the masses. There is immense scope for enhancing healthcare services penetration in India, thus presenting ample opportunity for further development of the healthcare industry.