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India Digital Healthcare

Overview

With 1.42 billion inhabitants, India is among the five most populous countries and fastest growing economies in the world, with an estimated GDP growth of 7 percent in 2022-23.

In 2022, the Indian healthcare industry reached $372 billion. Industry experts, Nexdigm predict that the healthcare industry will reach $612 billion by 2025. This increase in market size is due to growing demand for specialized and higher quality healthcare facilities. The products and services driving this growth include hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance, as well as medical and diagnostic equipment. Sector growth is also driven by large investments from existing corporate hospital chains and new entrants backed by private equity investors.   

The impact of the COVID-19 pandemic on India underscores the importance of investing in the healthcare sector. Industry experts believe there will be a significant increase in government healthcare spending in India over the next several years, partially spurred by lessons learned from the pandemic.  Public spending on healthcare in India stood over 2 per cent of the GDP in 2022 versus 1.2 per cent in 2020. The Indian government has proposed increasing this to 2.5 per cent by 2025, with a special focus on underprivileged populations.  

Digital Healthcare

As expenditures in the Indian healthcare sector increase, the corresponding growth in the digital health sector is anticipated. Though in its infancy, digital healthcare and telemedicine have expanded rapidly since the onset of the COVID-19 pandemic. People adapt to new health technologies and intelligent solutions to reduce barriers between hospitals and patients. Telemedicine technology and artificial intelligence will provide significant opportunities for U.S. firms in the coming years. Several major Indian players, such as Apollo, AIIMS, and Narayana Hrudayalaya have adopted telemedicine services. The Ministry of Health and Family Welfare (MOFHW), along with NITI Aayog - the Indian government’s public policy think tank, has recently released official guidelines for telemedicine practices to provide remote consultation under the supervision of the National Medical Commission, formerly the Medical Council of India. Healthcare services in rural India are not readily available, with the average rural Indian traveling over 62 miles to receive affordable healthcare at the nearest facility. Rural Indians will benefit from the increased focus on digital healthcare technologies by the Indian government and the private sector as India adjusts to this new service sector in the post-pandemic era.  

The U.S. government has had a long-standing partnership with India on digital health, which positions us well to continue engaging with Government of India (GOI) on this priority area. The U.S. Department of Health and Human Services (HHS) and the GOI’s Ministry of Health and Family Welfare are founding members of the Global Digital Health Partnership (launched in 2018), and HHS agencies, including the Centers for Disease Control and Prevention, support MOHFW’s various digital health priorities and activities. USAID partners with the GOI to support artificial intelligence and digital health solutions.

For entry into the Indian market, U.S. companies should identify quality partners who know this market. Strategic planning, due diligence, and consistent follow-ups are the prerequisites for doing business successfully in India.

U.S. companies may consider the following local trade shows to showcase their technologies and meeting Indian companies:

For market research, finding the right local partner, or establishing a local presence, healthcare sector team at the U.S. Commercial Service India stands ready to assist you.

U.S. businesses providing technologies and solutions in the sector and interested in India market could reach out to a nearest U.S. office or the Healthcare and MedTech team at the U.S. Commercial Service in India.
 

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