Healthcare is a significant industry sector creating a considerable percentage of revenue and employment in India. According to the latest statistics, this sector is expected to reach 280 billion US$ by next year (2020). The sector is expected to create 40 million jobs in India by the year 2030. The Indian hospital industry is expected to reach 8.6 trillion INR (132.84 billion US$) in the 2020 financial year from 4 trillion INR (61.79 billion US$) in the financial year of 2017. This expected growth and development make India an ideal place for global companies to invest and seek help Mergers and Acquisition firms in India.
What are the advantages of investing in the healthcare sector for global companies?
Being the largest provider of generic drugs in the world, India aims to become a global healthcare hub. This idea of future growth and development fetches foreign companies to take the route of consulting companies to enter into the Indian market. Some of the other reasons which make India an ideal global market is:
- Strong demand- The increased precedence of lifestyle diseases, rising income levels, better awareness in the health sector, improved and secure access to health insurance make the healthcare sector a growing and developing the sector.
- Private sector- The emergence of the private sector into India's healthcare industry acts as a vibrant force which accounts for 74 percent of total healthcare expenditure of the country. The quick access to world-class hospitals and qualified medical professionals has strengthened the country’s international as well as national reputation.
- Rising Workforce- The critical contribution of doctors and other medical professionals also adds to the success. According to the statistics provided by the medical council of India, there were 8, 27,006 number of doctors in India in the year 2010 which has increased to 8, 41,104 in the year of 2017.
- Impressive Opportunities-The Compound annual growth rate (CAGR) in the hospitality sector of India is expected to grow by 16 to 17 percent by the year 2030. Hence, highlighting and facilitating growth opportunities for foreign companies looking to invest in the healthcare sector via top healthcare consulting firms of India.
- Governmental Support-The National Health Protection Scheme called Ayushman Bharat launched in India on 28th September 2018 is the most massive government-funded scheme in the world. The scheme is expected to create mass level employment bringing a boost to the healthcare sector. Under this scheme, there has been an increase in the number of Primary Health Centres (PHCs) to 33,235 and sub-centers to 168,157.
- Telemedicine- The increasing trend of telemedicine has also added to the growth of the healthcare sector as well as the growth in medical tourism. Some of the major hospitals in India have entered into public-private partnerships (PPP).
How can global companies enter into healthcare sector?
Global companies seek help from top healthcare consulting firms to perform in-depth market research, enhance the efficiency of available healthcare facility, introduce modern medical equipment or a form of technology and increase the efficiency of the available healthcare facility. These consulting companies offer two ways of entering the Indian market, i.e., Joint venture with an Indian Company and Wholly Owned Subsidiaries. With the help of Mergers and Acquisition firms in India, global companies can set up their business operations in India.
References:
https://www.ibef.org/industry/healthcare-india/showcase
https://dipp.gov.in/investors/Investor%20Guidance/entry-strategies-foreign-investors
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