Indian Medical Industry to be $14 Billion by 2020
Date: Friday , December 03, 2010
Indian medical industry may touch $14 billion by 2020 on account of higher private investments in the sector and strong economic growth. According to the study by Federation of Indian Chambers of Commerce & Industry (FICCI) and PricewaterhouseCoopers (PwC), the market stood at $2.7 billion (Rs 12,350 crores) in 2008.
“Strong economic growth, increased burden of diseases, higher public spending and private investments in healthcare and increased penetration of health insurance are the key drivers for the growth in the sector,” the study said. The report reveals that there is a huge scope for innovation in the industry, as there is a big demand for it in the local market.
The study said that the epicenter of the innovation in this field is shifting towards emerging economies like India and China, since the advanced economies like U.S., UK, Germany, France and Japan do not have the need for frugal innovation. “Also, the emerging economies will have a higher spending on R&D in the future, which will provide the trigger for innovation, therefore witnessing more funding from venture capital, private equity,” states the study.
The report said, besides the success in medical technology innovation would depend on factors like a supportive investment community, creating capacity for quality research and demand and supply of health services.
The study also suggested that for the growth of the sector, it is important that the government increase public spending in healthcare to three percent of the country’s GDP from the current one percent and evolve medical technology clusters with common facilities for calibration and testing facilities to benefit small entrepreneurs.