Growth and Developments in Health sector

Summary:

Growth and Developments in Health Sector
Recent Developments in Health Sector
Budget and Health

Areas of Improvement

References

Growth and Developments in Health Sector:

As of April 2000-March 2024, The FDI inflow(Foreign Direct Investment) of Drugs and Pharmaceuticals sector stood at US $22.57 billion. 

Inflows in sectors such as Hospitals and diagnostic centers and medical surgeries appliances stood at US $10.26 billion and US $3.28 billion.

As of 2022-23, FDI Inflows in India stood at US $36,746 million.

Recent Developments in Health Sector:

As of August 1, 2023 a total of 24.33crores Ayushman Cards have been created and as of October 2023, a total of 26crore Ayushman cards have been created.

As of February 20, 2023 more than 220.63crores COVID'19 vaccine doses have been administered across the country while, as of May 11, 2023 more than 2.20billion COVID'19 vaccine doses have been administered.

As of July 15, 2023 India has exported 30.12crore vaccine doses.

The Healthcare and Pharmaceuticals sector in India had M&A activity worth US $4.32billion in the first half of 2022.

As of 2023, the number of medical colleges stood at 706.

In July 2023, The Indian Council of Medical Research (ICMR) released Standard Treatment guidelines for 51 common illnesses across 11 specialties to assist doctors, particularly in rural areas. 

The number of Policies issued to women in FY21 stood at 93 lakhs, with one out of every three life insurance policies in FY21 sold to a women.

As of November 2021, 80,136 Ayushman Bharat Health and Wellness centers (AB-HWC) are operational in India.

 As of November 2021, 638 E-Hospitals are established across India as part of the Central Government's Digital India Initiative.

Budget and Health:

In the Interim Union Budget 2024, The Ministry of Health and Family Welfare has been allocated Rs. 90,659crores (US $10.93billion) , an increase of 1.69% compared to Rs. 89,155crores (US $10.75billion) in 2023-24.

Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 2400crores (US $0.29billion).

Human Resources for Health and Medical Education was allocated Rs. 5016crores (US $0.60billion).

National Health Mission was allocated Rs. 38,183crores (US $4.60billion).

Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana was allocated Rs. 7500crores (US $0.90billion).

To promote Medical Tourism in India, the Government of India is extending the E-Medical facility to more than 156 crore people.

The Hospital Industry in India is forecast to increase to Rs. 8.6lakh crore (US $132.84billion) by FY22 from Rs. 4lakh crore (US $61.79billion) in FY17 at a Compound Annual Growth Rate (CAGR) of 16-17%.

In 2023, the Indian Hospital Industry was valued at an impressive US $23.5billion. Projections suggest a growth trajectory with a CAGR of 4.73%, potentially reaching USD 29.61billion by 2028.

Areas of Improvement:

The Immunization process among children need to speed up. Only 43.5% children are fully immunized.

79.1% of children from 6 months to 5 years of age are anemic. Healthy way of living and balanced dieting should come into play to further stop deterioration of health.

Two-thirds of the population lack access to essential drugs. Even though India is the exporter of medicine to the world, some parts of India lack access to basic medicines and healthcare.

The process of Health Insurance should be given more awareness. 80% of healthcare expenditure is done by patient and their families as out of pocket payment ( fee for service and drugs). Health inequalities across states, between urban and rural areas, and across economic and gender divides have become worse.

References:

Healthcare system in India: An Overview (2020). Paper on Research gate: Seilan Anbu, Nagercoil, India.

Interim Union Budget 2024 Summary Report.

IBEF paper on Healthcare Industry in India.