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| Specialization: Healthcare |
Valued at US$ 34 billion, the Indian healthcare sector is projected to grow to nearly US$ 40 billion by 2012.
The sector's growth will be driven by the country's growing middle class, which can afford quality healthcare. Over 150 million Indians have annual incomes of more than US$ 1,000, and many who work in the business services sector earn as much as US$ 20,000 a year. Today at least 50 million Indians can afford to buy Western medicines-a market only 20 per cent smaller than that of the UK.
The growing purchasing power of Indian patients is revealed in the increased business of air ambulance services. Around 365 airlifting worth several millions of rupees happen in Delhi in a year on average.
If the economy continues to grow and the literacy rate keeps rising, much of western and southern India will be middle class by 2020.
To meet this demand, the country needs US$ 50 billion annually for the next 20 years. India needs to add 2 million beds to the existing 1.1 million by 2027, and requires immediate investments of US$ 82 billion.
Funds in the sector have been largely private. In fact, the private sector provides 60 per cent of all outpatient care in India and as much as 40 per cent of all in-patient care. It is estimated that nearly 70 per cent of all hospitals and 40 per cent of hospital beds in the country are in the private sector.
Investments
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 (PE) investment of US$ 5.93 billion. The PE deals that the sector attracted in 2006 were as large as inputs into the automotive sector.
Private healthcare
With private healthcare driving a large chunk of healthcare in India, the stage is set for private healthcare players to take wing.
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