Decoding the Indian Healthcare Economy: A Comprehensive Analysis of Household Expenditure, Growth Trends, and Strategic Insights for Health Tech Startups
To develop a broad perspective into cracking the Indian healthcare economy, we have attempted to compile some interesting insights from our research. This also helps us to alignour vision of business into catching up with the reality of macro economic trends. According to Consumer pyramids household survey, Indian household expenditure for the year 2022 stands at ~14.4 billion dollars, breakup of the same is as below:
Sl.no | Sector of spending | Description of sector | % Spend | Total Indian Spend in USD Billion |
1 | Health Enhancement | Hygiene, Fitness & Wellness | 46% | 6.56 |
2 | Medicines | Pharmaceuticals | 42% | 6.08 |
3 | Doctor | Professional fees | 6% | 0.81 |
4 | Health Insurance | Annual Premiums | 2% | 0.29 |
5 | Medical Tests | Diagnostics | 2% | 0.23 |
6 | Medical Aids | Health care accessories | 2% | 0.23 |
7 | Hospitalisation | IPD Revenue | 1% | 0.20 |
| Total | Total Revenue Generated | 100% | 14.40 |
Valuation of Indian Healthcare | | USD367Billion |
GDP Expenditure for 2023 | | USD65Billion |
| | |
Ratios | | |
P/R Ratio | | 25.5 |
Revenue Generated per Capital Expenditure | | 0.22 |
1. Large proportion (88%) of Indian household spending on healthcare falls into hygiene, fitness, wellness & medication. Preventive measures & the services capable of being household requirements hold a larger proportion of significance.
2. The Indian Health care economy is valued at USD 367 Billion dollars. Up fromthe valuationof 160 Billion dollars in 2016, this is growing at a CAGR of 22% since the past 6 years.
3. Indian household expenditure on healthcare per annum for the year 2022 is at USD14.4Billion dollars. Our PR ratio for the healthcare economy at 25.5 - indicates that we are in a highgrowth stage.
4. Indian Healthcare GDP expenditure for the year 2023 is at 2.1% amounting to USD65 Billion dollars. Revenue generated per capital expenditure stands at 22%.
Takeaway:
Naturally, because of the above trends, most of the highly valued health tech startups are focussing on health enhancement & pharmaceutical businesses.
Broadening the application of technology & incorporating the measures to promote health enhancements through capital investments are most likely to gain higher returns
Source:
Below are the links of few interesting articles through which for your reference: https://ceda.ashoka.edu.in/how-much-do-indian-households-spend-on-healthcare-every-mont h/
https://pib.gov.in/PressReleasePage.aspx?PRID=1894902
Hope you find this interesting. Would be happy to get your take on the same
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