Buyers Speak
Outlook for India’s healthcare sector in the coming year
The Covid-19 pandemic has catalyzed transformation by accelerating the pace of reforms in India’s healthcare sector, and ushering in a new era of technology-driven interventions. In the coming year, there are several areas that are likely to get a further impetus in the healthcare space.
First, efforts are being undertaken to enhance medical infrastructure in all parts of the country, especially the Tier-II and Tier-III cities. This infrastructure expansion is also being driven through public-private partnerships. Further, several flagship programs have been launched by the government to address the gaps in medical infrastructure. Most recently, the government has identified 17 cities for augmentation of health infrastructure as part of the Heal in India initiative.
Beyond physical infrastructure, the government has also taken several steps to invest in human resources for health and ensure the availability of adequate well-trained doctors in the country. The number of undergraduate medical seats has increased by 75 percent in 2022 compared to 2014, while the number of postgraduate seats has increased by 93 percent. Medical colleges are being expanded, including through upgradation of district/referral hospitals. The government’s objective is to establish a medical college in every district of India.
Second, the implementation of various key government programs is gaining traction. These include the creation of health and wellness centers under the Ayushman Bharat initiative, focused on promoting wellness and delivering a suite of primary health services for communicable and non-communicable diseases as well as the National Digital Health Mission. Over 1.2 lakh health and wellness centers have already been operationalized across India. Launched last year, the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission is the largest all-India scheme since 2005 for the creation of primary and critical care health facilities in rural and urban areas. The government will spend ₹64,180 crore on this scheme between the financial year 2021-22 and 2025-26.
Third, government is also undertaking various initiatives to expand its flagship health insurance scheme, the Pradhan Mantri Jan Arogya Yojana, which had covered over 33 million hospital admissions as of 22 June, 2022.
Fourth, telemedicine and related services have witnessed major growth during the Covid era. This trend is likely to continue in the coming months, with the expansion of teleconsultations as well as remote monitoring and management of patients across the country, including in rural and remote areas. Telemedicine provides an opportunity to address some of the capacity-related challenges of the health system to deliver quality services in certain parts of the country. Several start-ups have developed innovative technology-driven solutions during the Covid era, and this has provided an impetus to the integration of digital technologies with the delivery of various health services.
Fifth, there is considerable emphasis being placed on medical tourism. As part of the Heal in India program, the Union Health Ministry is developing a roadmap alongside other stakeholders, including AYUSH, tourism, civil aviation and hospitals, to boost medical value travel in India by connecting overseas patients with medical facilities in the country. In addition to medical treatment, there is a focus on promoting wellness tourism which could also witness growth in the post-Covid era. The emphasis on health infrastructure augmentation and medical tourism will also create growth opportunities for the medical devices industry.
Finally, there is an opportunity to build on the heightened awareness about health and well-being, which has been created due to the pandemic. Social media and large-scale campaigns have been utilized extensively to catalyze behavior change related to Covid. There is a continued need for promoting wellness and health literacy among the masses through the use of various channels, including those that leverage technology.
