market may see threefold rise as its size in value terms is likely to reach
$372 billion (bn) by 2022 from the level of $110 bn as of 2016 thereby clocking
a compounded annual growth rate (CAGR) of 22 per cent, according to an
ASSOCHAM-RNCOS joint paper, says a release.
of lifestyle diseases, rising demand for affordable healthcare delivery systems
due to increasing healthcare costs, technological advancements, emergence of
telemedicine, rapid health insurance penetration, mergers and acquisitions
helping to reach untapped markets and government initiatives like e-health
together with tax benefits, incentives and a host of upcoming regulatory
policies are driving healthcare market in India,” noted a paper on ‘Indian
Healthcare Sector-An overview,’ jointly prepared by ASSOCHAM and research firm
The study stated
that factors like growing geriatric population, uptick in medical tourism and
gradual decline in cost of medical services will drive medical devices market
in India which was valued at $4 bn as of 2016 and is likely to cross $11 bn
mark by 2022 thereby registering a CAGR of 15 per cent.
It however noted
that imports make up about 75 per cent of Indian medical devices market.
The paper noted
that Goods and Services Tax (GST) will have a positive impact on Indian
healthcare market, particularly the pharmaceutical sector.
“GST would not
only streamline taxation structure but lead to ease of doing business by
minimising cascading effect of many taxes applied to a product, rationalise
supply chain, enable flow of seamless tax credit, lower manufacturing cost,
reduce cost of technology and make healthcare affordable.”
account for about 70 per cent of India’s $20 bn worth pharmaceutical market. Of
these, anti-infectives occupy the largest share of 16 per cent followed by
cardiovascular (13 per cent), gastro-intestinal (11 per cent), respiratory
(nine per cent), vitamins/minerals (eight per cent) analgesic (seven per cent),
anti diabetic (seven per cent) and others (29 per cent).
expenditure on research and development (R&D), rising collaborations
between Indian and foreign companies, reduction in product approval time and
other such factors are driving the growth of Indian pharmaceutical market,”
highlighted the paper.
pharmaceutical market is third largest globally in terms of volume and 13th
largest in terms of value.
ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920.
It was established by promoter Chambers, representing all regions of India.
Having in its fold over 400 Chambers and Trade Associations, and serving over
4.5 lakh members across India, ASSOCHAM has emerged as the fountainhead of
Knowledge for Indian industry, which is all set to redefine the dynamics of
growth and development in the Knowledge Based Economy. More information
available on www.assocham.org