Indian Healthcare Industry: Investment Opportunities and Outlook in 2022
The Indian healthcare industry has been witnessing commendable growth. The sector is growing at a CAGR of 22% and is expected to reach $372 billion by 2022. It is also estimated that the sector has the potential to create 2.7 million additional jobs by 2022. Factors such as growing population, rising middle-class population, increase in chronic and lifestyle diseases, adoption of technology, etc. are the main factors behind this growth. Hence, it won’t be a surprise that there is a huge interest from investors in the healthcare sector over the last few years. The private equity investment in India is further fuelled by conducive government policies and initiatives like Ayushman Bharat and other incentives for the production and manufacturing of devices and pharmaceuticals.
The following points show why the Indian healthcare sector will continue to attract investment in 2022:
Health Insurance Penetration– The pandemic created more growth opportunities for the insurance market. There has been a significant increase in awareness of health insurance products that resulted in the launch of affordable insurance products in the market. The Indian government has also launched the world’s largest government-funded healthcare insurance program. These developments are likely to improve the affordability of medical expenses.
Infrastructure — The huge shortfall in the number of hospital beds and availability of advanced diagnostic equipment is creating a huge demand for large hospital chains, specialty centers, and other facilities to create the related infrastructure to meet the growing demand.
Technology Penetration — Technologies such as AI, ML, big data, and the internet of things are enabling round-the-clock access to care even in the comfort of people’s homes. There is a huge scope of expansion in devices such as wearables as well as integration of robots and blockchain technologies in remote monitoring and other aspects.
Medical Tourism — The Indian healthcare sector has become a preferred destination for foreign patients due to the quality medical services available at a lower cost compared to the developed countries. The continuous flow of foreign patients will contribute to the development of the overall economy of this sector.
Opportunities in Tier 2 & Tier 3 Cities — An increase in per capita income over the last few decades has increased the spending power for quality healthcare. Unlike big cities, where availability and utilization of health infrastructure are high, smaller cities are providing a huge opportunity to set up the entire infrastructure. Many big hospitals have already started expanding in small cities by creating small centers and partnering with local reputed doctors.
Quadria Capital, a healthcare-focused private equity investment firm in India, believes that India presents a large opportunity for investors. The above sectors provide strong opportunities for more investment. The future looks bright and the well-being of India’s people and therefore, the country’s progress will hinge on its healthcare sector. Quadria Capital is looking to back disruptive, technology-based, and innovation-driven businesses and help them become world leaders.