'India' Healthcare Cost to Cross $14 bn in 2013'
- Hits: 2030
21 July 2009
New Delhi, India
The main factors propelling the growth will be rising income levels and changing illness profiles reflecting a shift from chronic to lifestyle diseases
Expenditure on healthcare in the country will grow nearly 6 per cent per annum to cross US $14 billion in 2013, says a report released here on Tuesday.
“The health infrastructure across Indian states is projected to grow by an average of 5.8 per cent per annum between 2009–2013, taking the total expenditure in 2013 to US $14.2 billion, ” global consultancy KPMG in its report on India’s healthcare sector said.
Of the 32 states under review, Maharashtra, Rajasthan, West Bengal, Uttar Pradesh, Tamil Nadu and Andhra Pradesh will represent approximately 50 per cent of the expenditure, reports IANS quoting KPMG.
The report also said the Indian healthcare industry was estimated to double in value by 2012 and more than quadruple by 2017.
According to it, the main factors propelling the growth will be rising income levels and changing illness profiles reflecting a shift from chronic to lifestyle diseases.
“This is likely to result in considerable infrastructure challenges and opportunities, ” the report said.
While the Indian healthcare system has grown manifold over the past few years, it has yet not been able to keep pace with the rapid rise in the population, KPMG’s markets and healthcare services Head Pradip Kanakia said.
“One example of that is the availability of hospital beds in our country – against a world average of four beds per 1,000 population, India lags behind at just over 0.7 presently.”
Kanakia called for radical reforms in the healthcare infrastructure development process, and pressed for the use of public private partnership (PPP) model on a larger scale as well as allowing foreign investment in the sector.
KPMG also said urban healthcare infrastructure had to be looked at on a priority basis, as rural–to–urban migration has significantly increased the demand for these services.