Since independence India has come a long way in terms of improving the health of its citizens. In just three decades, the country has added at least 11 years to the average life expectancy at birth, raising it from only 55 years in 1980 to 66 in 2013. Robust investments and expansion by the private sector has had a significant role to play in the development apart from other related factors especially innovations in medical technologies.
A recent report by KPMG and FICCI states that India spends 4.2 per cent of its GDP on healthcare out of which only 1 per cent is contributed by the public sector. The Indian government’s expenditure in healthcare is amongst the lowest in the world due to tight fiscal discipline. However, even without adequate public sector funding, the healthcare segment, which was at $73.92 billion in 2011, is projected to grow at a compounded annual growth rate of 16 per cent to reach $280 billion in 2020 thanks to efforts by the private players. Moreover, every $1 invested in the healthcare industry helps to generate $4 through its ancillary industries also by way of creating jobs through the value chain.
