India's healthcare industry has been growing at a Compound Annual Growth Rate (CAGR) of around 22% since 2016. At this rate, it was expected to reach USD 372 billion in 2022. Healthcare has become one of the largest sectors of the Indian economy in terms of both revenue and employment. The recent pandemic has shown that healthcare is a foundational element, much like infrastructure, which can either have a multiplier or a fractional effect on the overall economy. It is important to assess the health of the healthcare sector, which can be extrapolated to the health of the overall economy.
Population Growth: India’s population continues to grow, leading to a greater need for healthcare services. The country is projected to add around 140 million middle-income and 21 million high-income households by 2030.
Aging Population: With an increase in life expectancy, the elderly population requires more
medical attention. By 2030, the median age of the population is expected to be 31, making India
the largest working-age population in the world.
Rising NCDs: Lifestyle changes have led to a higher incidence of diseases like diabetes and
hypertension, necessitating specialized care and newer models of care delivery.
Technological Advancements: : The integration of technology in healthcare, such as telemedicine
and AI, has created new roles and increased demand for tech-savvy professionals.
Health Insurance Penetration: With more people getting health insurance, there is an increased
demand for healthcare services across the board. The health insurance market in India was
growing at a CAGR of 24% but rose to about 34% during the pandemic period.
Government Initiatives: Schemes like the Ayushman Bharat Digital Mission and investments in
infrastructure have expanded access to healthcare, thereby increasing workforce requirements.
Provider Landscape, Innovative Delivery Models & Supporting Supply Chain Enablers: India's
delivery landscape is a mix of public and private healthcare providers, which is rapidly
consolidating due to the merger of financing risk pools and rising hurdles for scale and efficiency
in a hyper-competitive marketplace. This requires a careful balance between access, quality,
equity, and affordability at an unprecedented scale
At NATHEALTH, we believe there is a compelling need to create a unique platform conducive to meaningful dialogue that paves the way for collaboration among various stakeholders. With this objective, the forthcoming NATHEALTH Summit 2025 will deep-dive into critical roadblocks and solutions that need to be unlocked to accelerate our trajectory, like:
Today, we stand at a crossroads, ready for change. The path to achieve this holistic goal hinges on collaboration, where all health industry stakeholders come together, deliberate, cooperate, and work in tandem to bridge vital gaps in service delivery. Both public and private stakeholders need to rethink how we will address systemic issues in India, invest in, and rebuild healthcare infrastructure as a strategic asset.
As a nation, we must look at planning for the next 5 years in the first phase and perhaps decades ahead, putting the pieces back together and adding elements to enable all of us to live the new normal. The private sector is an important and legitimate stakeholder in this journey ahead.
Supporting the national agenda & harnessing the true potential of the private sector implies: