NITI Aayog outlines a range of investment opportunities in healthcare sector – The Economic Times

Clipped from: https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/niti-aayog-outlines-a-range-of-investment-opportunities-in-healthcare-sector/articleshow/81761426.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis

This is on the back of an aging population, a growing middle class, the rising proportion of lifestyle diseases, an increased emphasis on public-private partnerships as well as accelerated adoption of digital technologies.

NITI Aayog, on Tuesday, outlined a range of investment opportunities in India’s healthcare sector across hospitals, pharmaceuticals, medical devices, home healthcare solutions and in areas of new age technologies.

This is on the back of an aging population, a growing middle class, the rising proportion of lifestyle diseases, an increased emphasis on public-private partnerships as well as accelerated adoption of digital technologies.

“The Covid-19 pandemic has not only presented challenges but also several opportunities for India to grow. All these factors together make India’s healthcare industry ripe for investment,” NITI Aayog CEO Amitabh Kant said in the report on ‘Investment Opportunities in India’s Healthcare Sector’ released on Tuesday.

The report said healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment. It has been growing at a CAGR of 22% since 2016, employing 4.7 million people directly. The sector has the potential to generate 2.7 million additional jobs in India between 2017-22 — over 500,000 new jobs per year, it said.

As per the report, FDI inflows in the healthcare sector in India increased from $94 million in 2011 to $1,275 million in 2016, a jump of over 13.5 times.

According to the report, in the hospital segment, the expansion of private players to Tier 2 and Tier 3 locations, beyond metropolitan cities, offers an attractive investment opportunity.

Quoting the findings of the Invest India’s Investment Grid, the Aayog said in the report that there are nearly 600 investment opportunities worth $32 billion in the country’s hospital/medical infrastructure sub-sector.

“With respect to pharmaceuticals, India has the opportunity to boost domestic manufacturing, supported by recent government schemes with performance-linked incentives, as part of the Aatmanirbhar Bharat (Self-Reliant India) initiative,” it said.

“Further, between 2018 and 2024, patents worth $251 billion are expected to expire globally, presenting a lucrative opportunity for the country’s pharmaceutical sector, including the patent market,” it added.

The Aayog is of the view that in addition to generic drugs, there are investment opportunities in other segments of India’s pharmaceutical sector, including over-the-counter drugs, vaccines and contract manufacturing and research.

Moreover, in the medical devices and equipment segment, expansion of diagnostic and pathology centres as well as miniaturised diagnostics have high potential for growth. “Medical value travel, especially wellness tourism, also has bright prospects, given India’s inherent strengths in alternative systems of medicine,”it said.

The Aayog is of the view that while the adoption of home healthcare solutions in India is currently at a relatively nascent stage, it has tremendous potential for growth in the future on account of the rising elderly population in the country, increase in the incidence of chronic diseases, enhanced demand for constant personalised care as well as the emergence of nuclear family structures in urban areas.

According to the report, technology advancements such as artificial intelligence (AI), wearables and other mobile technologies, along with the Internet of Things, offer several avenues for investment in key segments like development of tools to facilitate emergency care and improvements to medical infrastructure, through technology-based optimization.

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