India's healthcare sector poised to grow to $280 bn: Report

The country's healthcare sector is poised to grow to USD 280 billion by 2020 while it is expected to be a leader in e-health by 2019, a new report said.

The CII-KPMG 'The Indian services sector: Poised for global ascendancy' report launched at the second edition of Global Exhibition on Services (GES) said that healthcare sector is forecast to reach USD 160 billion in 2017, accounting for about 4.2 percent of GDP.

"The Indian healthcare sector is forecast to reach USD 160 billion in 2017, accounting for about 4.2 percent of GDP, and is poised to grow to USD 280 billion by 2020.

"With the launch of 'Digital India' initiative, the government is stepping towards digital empowerment. India is expected to be a leader in IT use in healthcare (e-health) by 2019," it said.

It said Indian telemedicine, though in its nascent stage, is showing robust growth at approximately 20 percent and is projected to grow from USD 8 million in 2012 to approximately USD 19 million by 2017.

The report highlighted that in the year 2014-15, the services sector contributed about 61 percent to India's GDP, growing strongly at approximately 10 percent per annum, making India the second fastest growing services economy in the world.

"India's young demographic profile combined with its rising literacy rate, offers it a significant competitive advantage vis-i-vis other developing economies," Rajat Wahi, Partner and Head, Consumer Markets, KPMG in India, said.

"Along with the 'Make in India' initiative that is striving to boost the manufacturing sector, the Prime Minister has outlined a vision to represent India as a world-class services hub across sectors. Multiple stakeholders need to work cohesively to help achieve this vision," he said.