'India's Healthcare Sector To Grow To $158.2 Bn In 2017'

Mumbai: The healthcare sector in India will grow to $158.2 billion in 2017 from $78.6 billion in 2012, a report has said.

"The healthcare sector is growing at a 15 percent CAGR and jumped from  $45 billion in 2008 to  $78.6 billion in 2012 and expected to touch  $158.2 billion by 2017," Equentis Capital said in its report.

India being a country with growing population, country's per capita healthcare expenditure has increased at a CAGR of 10.3 percent from  $43.1 in 2008 to  $57.9 in 2011 and going forward this figure is expected to rise to  $88.7 by 2015.

The factors behind the growth is rising incomes, easier access to high-quality healthcare facilities and greater awareness of personal health and hygiene, the report said.

The country's healthcare system is developing rapidly and it continues to expand its coverage, services and spending in both the public as well as private sectors, it said.

The private sector has emerged as a vibrant force in India's healthcare industry, lending it both national and international repute. Private sector's share in healthcare delivery is expected to increase from 66 per cent in 2005 to 81 per cent by 2015. Private sector's share in hospitals and hospital beds is estimated at 74 per cent and 40 per cent, respectively.

There is substantial demand for high-quality and speciality healthcare services in tier-II and tier-III cities. To encourage the private sector to establish hospitals in these cities, government has relaxed the taxes on these hospitals for the first 5 years.