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FICCI-EY Report Highlights India's Healthcare Progress: Reaching $130 Billion Pharma Market by 2030

This report outlines India's significant progress in the healthcare sector over recent decades, showcasing efforts to improve accessibility, quality, and innovation.

• By PharmaNews Live Desk
• New Delhi
• May 16, 2024

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Apurva Chandra, Secretary of Health & Family Welfare, Government of India, unveiled the latest FICCI-EY report titled "Decoding India’s Healthcare Landscape".

This comprehensive report outlines India's significant progress in the healthcare sector over recent decades, showcasing efforts to improve accessibility, quality, and innovation.

Healthcare Expenditure

India's healthcare expenditure as a percentage of GDP has shown a notable increase, reflecting a greater investment in the sector. From 0.9% in 2003-04, it rose to 1.2% by 2014-15, reaching 2.1% in 2022-23.

Concurrently, out-of-pocket expenditure (OOPE) has decreased from 64.2% in 2013-14 to 48.2% in 2018-19, indicating enhanced accessibility and affordability of healthcare services.

Health Indicators

India has made significant strides in improving key health indicators, including infant, maternal, and neonatal mortality rates. These improvements demonstrate the country's commitment to enhancing overall public health.

Revolutionizing Healthcare Infrastructure

The expansion of healthcare infrastructure in India has been remarkable, with a significant increase in the number of government hospitals and medical colleges.

This growth has been crucial in meeting the healthcare demands of a growing population. The number of medical colleges has nearly tripled over the last two decades, and since 2014, their number has grown at a compound annual growth rate (CAGR) of 5.9%.

Expanding Healthcare Workforce

The report highlights the substantial growth in the number of medical professionals. The number of registered allopathic doctors increased from 660,801 in 2005 to 1,308,009 in 2022.

Additionally, there has been a significant rise in the number of registered nurses and utilization of public health facilities.

Pharmaceutical Industry

India ranks third globally in pharmaceutical production by volume and is renowned for its generic medicines and affordable vaccines. According to the FICCI report, the Indian pharmaceutical industry is expected to reach a market size of $130 billion by 2030. The country accounts for 60% of global vaccine production and has pharmaceutical exports three times the volume of imports.

Rising Medical Value Travel

India has become a popular destination for medical tourism, with a 10.8% increase in medical tourists from 2012 to 2022. The National Strategy and Roadmap for Medical and Wellness Tourism have significantly contributed to this growth, highlighting India's appeal as a healthcare destination.

Digital Health Revolution

The Digital India program has transformed the healthcare sector, with initiatives like the Ayushman Bharat Digital Mission, CoWIN App, Aarogya Setu, e-Sanjeevani, and e-Hospital extending healthcare services nationwide.

These digital advancements have bridged gaps among various stakeholders in the healthcare ecosystem.

Increasing Bed Capacity

Government hospitals across India have seen a consistent increase in bed capacity, growing from 470,000 beds in 2005 to 850,000 beds in 2021. This expansion is crucial in meeting the healthcare needs of the population.

Key Imperatives for Achieving India’s Healthcare Vision 2047

• Increase the number of qualified doctors to over 5 million, achieving double the current global average and approaching the developed countries' average. 
• Raise the number of nurses to between 12.5 to 15 million to match developed countries' standards. 
• Add 3 million more hospital beds to align with developed countries' averages. 
• Achieve 100% health insurance coverage for the population. 
• Establish one medical college in every district of India. 
• Reduce the share of drug costs in out-of-pocket expenditure. 
• Accelerate digitally enabled healthcare access by registering 100% of healthcare professionals onto the ABDM healthcare professional’s registry.

The FICCI-EY report underscores the transformative changes in India's healthcare sector, highlighting both the accomplishments to date and the ambitious goals set for the future.