The dichotomy of Indian Healthcare

Healthcare spend to rise to 2.5% of GDP

At current Indias public spending on health is 1.4 % of GDP Among the lowest in the world
Sri Lanka -1.8 % China - 2.3 % Thailand - 3.3 % US - in excess of 7 % European nations like UK, Spain, Germany, Italy - 6.5-8 %

Per capita government spending on health

India spends $43 per head Sri Lanka - $87 China - $155 and Thailand over six times at $261

Social Demographics
100%
5 6 14 5 7 17 6 8 19 7 9 21

80%

60%

22

25

27

29

40%

30

32

33

33

20%
23 23 22 22

0%

2000
<=9 10 - 24

2005
25 - 39

2010*
55 - 64

2015*
65+

40 - 54

Indias population under 25 represent over 50% of the total population CURRENTLY >120 MILLION PEOPLE 55 AND ABOVE Estimated to be the largest elderly population in the world this group will form a major consumer segment in the near future

Market size and structure

A nascent market with double digit growth rates Competitive market- presence of MNCs as well as domestic firms High imports Changing medical technology landscape Improving healthcare delivery and financing Changing patient profile

Key Growth Drivers for Medical Technology Industry in India

Key Challenges

Innovation in Medical devices

Need for Innovation

Objective of Innovation
Medical device and imaging technology companies directing their efforts at creating low-cost, lowpower, ergonomic medical devices that require little maintenance and are relatively low risk. New-age medical devices are expected to standardize medical infrastructure all over the world, so that the imbalance in the availability of quality medical treatment in developed and developing countries will be narrowed.

Example
Major growth drivers for the diagnostic imaging sector in the future are expected to be:
Portability Miniaturization Digitization Hybrid imaging Use of safe and non-ionizing imaging modalities such as optical, ultrasound Mobile health delivery aids such as smart pills

Cycle of Innovation
Expanding medical imaging sector

Inflow of funds leads to development of high-quality & high-tech medical equipment at affordable prices

Rapid innovation

Improved the sectors growth rates and attracted investments

Increased profits

Success stories
Some Indian companies are also channeling their technological and medical talent towards frugal approaches. A few examples

Major technology themes

Highly likely medical device innovation over the next decade
electronics technology detection, diagnosis, and monitoring technologies decentralized care technologies minimally invasive technologies synthetic organs, tissues, and combination device/biological and device/drug technologies demographically oriented technologies