Health products are the next big category in India’s healthcare market, and this year the market is expected to grow at a compound annual growth rate of 6.5 per cent over the next three years.
But the big growth in health care has been seen in a few specialties.
In terms of overall sales growth, the health sector is expected increase by 9.4 per cent, according to the latest data from the National Sample Survey Organisation (NSSO).
The category that accounts for about half of the health spending is the specialty care industry.
Its revenue is estimated at $1.1 trillion, or about 7.3 per cent of the overall health expenditure in the country.
The specialty healthcare sector accounts for an estimated 13 per cent share of health spending in the entire economy, according the National Council of Applied Economic Research (NCAER).
The industry is projected to account for about a quarter of the country’s total health spending over the coming five years.
In the healthcare space, the growth in sales is expected in the specialties of general and surgical, as well as in pediatrics, primary care and endocrinology.
The NSSO has released a new report that forecasts a 7.2 per cent growth rate in the health products market in the next five years, followed by a growth of 3.4 percentage points in the general and cosmetic products market and a growth rate at 2.7 per cent in the specialty category.
In a report released on Thursday, the NCAER said it expects a compound growth rate (CGR) of 5.2 percentage points per annum over the five years to 2020, and growth of 6 per cent and 6.1 per cent respectively in the two categories.
While the specialty categories are expected to experience the biggest growth, general and dental care is expected, at 6.4 and 7 per cent per annums respectively.
The industry has seen a surge in growth since the introduction of the Medicare scheme in January 2018, with a whopping 17 per cent rise in sales and an 8.6 per cent increase in gross revenue in the same period.
In addition, there have been significant growth in the number of specialty doctors, the report said.
The healthcare sector has been the largest contributor to health expenditure and is expected for a whopping $8,400 billion in revenue in 2020, up from $6,700 billion in 2019, according NCAER.