The Indian healthcare sector is expected to become a $280 billion industry by 2020 with spending on health estimated to grow 14 per cent annually, according to a report by industry chamber Ficci.
"Healthcare has emerged as one of the most progressive and largest service sectors in India with an expected GDP spend of 8 per cent by 2012 from 5.5 per cent in 2009...It is believed to be the next big thing after IT and predicted to become a $280 billion industry by 2020," the report said.
At present, the sector is estimated to be around $40 billion and will grow to $78.6 billion by 2012, it said.
"Increase in personal income, government healthcare outlays and private domestic investments, combined with longer life expectancy should lead to annual average growth in healthcare spending of around 14 per cent in the forecast period," the report said.
According to the report, India spent 5.2 per cent of the GDP on healthcare, of which 4.3 per cent was spent by the private sector valued at $22 billion.
Private sector expenditure in the healthcare segment is expected to reach $45 billion by 2012, it added.
The report pointed out that the hospital segment alone is expected to reach $54.7 billion by 2012, representing more than 70 per cent of healthcare sector revenues.
In terms of employment, the healthcare industry is expected to provide jobs to 9 million people by 2012, it said.
Among the healthcare sectors, medical devices and supplies market in India is expected to touch $1.7 billion in 2010. It is expected to reach $2.2 billion by 2012.
"Free market environment, a developed industry and investment in health infrastructure are amongst other factors resulting in the growth," it said.
