The Indian healthcare industry operates in both the private and public sectors. The public healthcare system consists of facilities run by the central and state government. These public facilities are provides free or subsidized rates to lower income families in rural and urban areas. However, the Indian healthcare industry is going through a growth phase due to it’s healthy economy.
This industries growth will increase as the country’s middle class continues to grow. Indian’s whom find himself or herself in this ever-growing middle class are able to afford quality healthcare. With this increased ability to pay for better healthcare, the demand for healthcare services in India has grown from $4.8 billion in 1991 to $22.8 billion in 2001-2002. Fifty million Indians are today able to afford western medicine, and over one hundred and fifty million have annual incomes of more than one thousand US dollars.
Also, the introduction of product patents are expected to increase this industry by encouraging multinational companies to launch specialized life-saving drugs. Major Indian pharmaceutical companies have also shown core competencies across several areas of the pharmaceutical business, including marketing, acquisition, and research and development. Attracted by these advantages along with the low costs of production and the skilled workforce that India offers, companies are looking to set up research and development as well as production centers.
The opportunities presented by the healthcare sector have made it a major draw for potential investors. The healthcare sector attracted US $379 million in 2006, 6.3 per cent of the total private equity investment of US $5.93 billion.
