Why is it a good time to invest in Healthcare Industry?
- BY Akshay Arora
Feature Writer, BusinessEx
- Nov 28,2017
- 11 Mins Read
In India, the healthcare industry is on boon as people in rural areas have also started to acknowledge the need for it. With the growing population, the demand for healthcare is only rising. This is the best time to invest in this sector as a lot of innovations are taking place and new opportunities emerging in this industry. A business grows when it caters to a particular need. Healthcare has become the beacon of opportunities for the investors and need of customers. Let’s see what current trends reflect.
Indian Healthcare Industry- Current Trends
- Revenue in this industry is expected to grow at 15 per cent in this financial year and it is alleged that medical tourism in India which is worth $3 billion will grow double by next year with a rate of 22-25 per cent, says IBEF report.
- The healthcare industry is projected to grow at a CAGR of 23 per cent from the current worth of $100 billion to $280 billion by 2020, says a report of Deloitte India.
- According to statistics revealed by the Department of Industrial Policy and Promotion (DIPP), the foreign direct investment worth $4.34 billion has been raised by the hospitals and diagnostic centres in between 2000 to previous financial year.
- The demand for healthcare is expected to rise in the coming years from the people from rural India which accumulates over 70 per cent population of the country, as per IBEF report.
There is constant innovation and discoveries keep on enhancing the scope of healthcare industry but still so much is left to explore. A new development in any industry is a positive advantage for investors as this will only increase the demand. Here are the new things in the industry which help to attract investments.
Innovations in the healthcare industry include the introduction of new technology, the introduction of new techniques and equipment to help patients, better business opportunities, new startups using artificial intelligence and software as a service to provide health services etc are bringing the change in this industry. These changes are the major source to attract funding.
- Digital Growth
Digital growth has the major impact on the healthcare industry. Digitisation has certainly opened up a platform for beginners to share knowledge and expand their business. Entrepreneurs with new ideas seek for investors on platforms like ours to transform that idea into a good business opportunity.
Investors are now putting more focus on this industry to invest their capital. Many startups are making their mark in this space with the help of new technology. The investors are also keen to invest in new startups. Some of the startups catering in this industry which recently raised investments are MobieFit, Portea Medical, Netmeds, etc.
Need of investments in Healthcare
An investment is a generic need for any business or industry to grow. The most beneficial thing about this industry is that, there, not a particular community that businesses have to target as everyone needs it one day or another. In India, there is a shortage of medical facilities in rural areas which can be improved with proper funding.
A KPMG report reflects that approximately 74 per cent of the physicians in India caters to only one-third patient of urban areas. There are some drawbacks but where isn’t so don't be afraid and explore investment opportunities.
There is no doubt that the Indian healthcare industry is whooping but the decision to make an investment solely depends on the investor. An investor has to see a lot of things before investing in a business and the most important thing to check is whether it is profitable or not. According to statistics, the healthcare industry is still lacking behind and there are a lot of startups emerging that can make a difference in the industry if they find a suitable investor.
More from Akshay Arora
- October 05, 20213 Min Read
- October 07, 20213 Min Read
- October 08, 20213 Min Read
- October 11, 20213 Min Read
- October 12, 20213 Min Read
- October 15, 20213 Min Read
- October 16, 20213 Min Read
- October 23, 20213 Min Read
- October 30, 20213 Min Read
- November 12, 20213 Min Read
- November 29, 20213 Min Read
- December 04, 20213 Min Read
Recommended for you
- October 08, 2021
- October 07, 2021
- October 05, 2021