Growth factors

One of the most vital factors to determine growth of a sector is to look at its economics. The growth trend in India indicates that the healthcare sector grew up from $45 billion from 2008 to $240 billion in 2020. The CAGR was particularly high in the year 2016-2020 where it remained at an average of 22 per cent, which made the healthcare industry one of the largest sectors of the Indian economy both in terms of revenue as well as employment. Similarly, the Government spending on healthcare has reached 1.6 per cent of GDP, from 1 per cent, but the same needs to be increased to at least 2.5 per cent by 2024-25 as per the aspirations of our National Health Policy 2017. The Medical devices’ share in the entire healthcare market stands at around $11 billion. This is just 1.6 per cent of the global medical device market, which is not in proportion to India’s share of global population which is around 18 per cent. Comparing this with the pharma sector, where India has a market share of 14 per cent by volume clearly indicates an opportunity of enormous growth for the Indian med-tech sector.