August - 2016 - Special issue > CXO Insights
How Startups Are Changing Health Landscape in India
Sanjay Lakhotia, Founder & Director, Fitastic
India's healthcare sector is in contradiction. It is not like we are not going up the ladder, but if you look at the numbers, they have a different story to tell. According to a recent report by FICCI-KPMG, India's healthcare sector is should touch a whopping $280 billion in size by 2020. What does this mean for the Indian economy? It will grow at a compound annual growth rate of 16 percent.Sounds promising, doesn't it? But that is only from an industry perspective. The reality, as they say, is a different story altogether.
The public health care system is inconsistent, with underfunded and overcrowded hospitals & clinics, and inadequate rural coverage. Despite rapid economic growth, especially in the past two decades, successive governments have failed to invest in health. India spends only about one percent of its gross domestic product (GDP) on public health, as against three percent in China and 8.3 percent in the U.S. With the government's low spending on healthcare, patients and their families bear the brunt.According to a report by Deloitte, total healthcare spending in India will escalate an annual rate of over 12 percent, from an estimated $96.3 billion in 2013 to $195.7 billion in 2018.
Good News? Not Exactly
In developed countries, a significant share of healthcare costs is shared by the Government and insurance companies. However, in India, 70 percent of the population pays for their healthcare. Highest in the world!
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