Could entrepreneurs bet on healthcare sector?
Healthcare sector set to become more attractive
The Indian health care sector is one of the fastest growing sectors. The sector is attracting large investments by private equity firms and venture capitalists. This comes on the back of private health care system offering a competitive edge over the traditional public healthcare delivery system. Industry experts have projected a positive outlook for the Indian healthcare sector. The healthcare industry is projected to grow with an estimated market value of US$ 280 billion by 2020.
Since this segment is one of the sunshine sectors playing a positive role in the Indian growth cycle, there are ample opportunities for budding entrepreneurs to grow with the sector. From franchise based revenue models offered by various pathology laboratories and hospitals to venturing into the field of medical devices, R&D, procuring medical equipment or medical tourism, there are ample opportunities for the smart entrepreneur to make a successful start to his business enterprise.
Opportunities in Healthcare Segment for Budding Entrepreneurs:
Hospitals: The overall number of beds, physicians and nurses in India is low as compared to other developing countries and international averages. According to market estimates, an additional 750,000 beds will be required by the year 2020 of which 150,000 beds need to be tertiary beds to bring Indian healthcare system at par with other developed nations. The success of number of new hospital chains in recent times is testimony to the growth potential of hospital segment of the healthcare sector.
Pharmaceuticals: India offers a great potential for entrepreneurs involved in manufacturing, extraction, processing, purification and packaging of chemical materials for use as medications for humans or animals. There is an increasing need for new innovative companies that could challenge the conventional pharmaceutical companies offering drugs and medicines for the Indian population at large. New entrepreneurs can make use of this need and gain a foothold in the pharmaceutical industry in the coming future.
Diagnostics: The diagnostic market essentially comprises of businesses and laboratories that offer analytical or diagnostic services, including body fluid analysis. Some of the well known healthcare brands are diversifying in the diagnostic market to unlock the immense potential of the segment. Franchisee based business models are also available under the diagnostic market.
Medical Equipment and Supplies: Medical equipment and supplies includes establishments that are primarily involved in manufacturing medical equipment and supplies such as surgical, dental, orthopedic, ophthalmologic, laboratory instruments etc. Young entrepreneurs could choose to opt for manufacturing medical equipment and suppliers using the Indian cost advantage compared to imported expensive equipment vastly used in the sector today.
Medical Insurance: Less than 15 per cent of Indian population is today covered through any pre-paid health insurance scheme. 85 per cent of the Indian population pays out their medical bills from their own pocket or from private spending. Health insurance sector is likely to be the front runner of the insurance market especially with new FDI norms signaling the growth potential of the health insurance industry.
Medical Tourism: India with its cost advantage and skilled doctors offers a great upside for medical tourism. Patients visiting India for their surgeries need a one-stop shop which could handle all their needs from visa processing to hospital selection and surgery related dilemmas. Companies catering to the needs of such medical tourists can become a new age medical hospitality bigwigs.
Re-Emergence of Traditional Medicine offers a Lucrative Opportunity for New Entrants: India has a host of traditional medical systems including Ayurveda, Unani and Siddha, amid others. Entrepreneurs could opt for such traditional medicine remedies and grow with the sector especially as the government is offering full-time support and tax incentives to set up new centers promotion traditional forms of medicine.
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