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Healthcare mkt. in India may see threefold increase by 2022: ASSOCHAM-RNCOS Paper

 

Sunday, December 03, 2017


 GST to have positive impact on pharma
 
India’s healthcare 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.
 
“Growing incidence 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 RNCOS.
 
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.”
 
Generic drugs 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).
 
“Increasing 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.
 
Indian pharmaceutical market is third largest globally in terms of volume and 13th largest in terms of value.
 
 
About ASSOCHAM:

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
 
For further details, please contact:
 
Manju Negi
AVDHESH SHARMA    
ASSOCHAM
ASSOCHAM    
011-46550509; +919810910911
011-46550508; +918527639419
 

 

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