August 2011: Evolution of the Hospital Market in India

Indian healthcare segment is witnessing a rapid growth brought by the changing demographics, increasing disposable incomes and increasing life style diseases. Hospital segment is one of the most dynamic business sectors with an anticipated annual growth rate of over 12%. Opening of the industry and removal of capping on FDI have led to investment from oversees. Though the quality of healthcare is very high, India lacks infrastructure in terms of hospital beds at the same time. India has one of lowest per capita hospital beds in the world compared to the other developed and developing countries. In the recent past corporate hospital chains have witnessed impressive growth. Many hospital chains have adopted innovative strategies of targeting population in the Tier II and Tier III cities. Lack of infrastructure and growing disease burden is expected to drive the hospital industry in the coming decades.