Healthcare sector has huge potential for growth: Panelists

The panel discussion was held as a part of the Kalaignar Centenary International Medical Conference on the ‘Future of Medicine’, organised by Tamil Nadu Health Department at the Chennai Trade Centre. | Photo Credit: Special Arrangement

India’s healthcare sector has tremendous potential to grow across various sectors, industry players said here on Sunday.

Globally, the size of the sector is $10 trillion. The Indian healthcare sector accounts for about $372 billion and is growing at a compounded annual growth rate (CAGR) of 22%. Given the population size, there is huge scope for growth, G.S.K. Velu, chairman & managing director, Trivitron Healthcare & Neuberg Diagnostics Group said, moderating a panel discussion on ‘Investments, Healthcare Financing & Private Equity Funding that will shape the future of healthcare’.

The panel discussion was held as a part of the Kalaignar Centenary International Medical Conference on the ‘Future of Medicine’, organised by Tamil Nadu Health Department at the Chennai Trade Centre. In healthcare infrastructure, India will need three million more beds to achieve the target of 3 beds for 1,000 people by 2025, Mr. Velu said.

Ashutosh Choudhury, executive director, Indian Bank, said that from a banking perspective, the healthcare sector was viewed positively.

He further pointed out that post the COVID-19 pandemic, the importance of healthcare had gone up, especially the need for pre-health check-up.

Chandrasaker K., managing partner-Stakeboat Capital, pointed out that the healthcare sector had seen significant growth and there was potential across sectors such as hospitals, diagnostics, pharmacy and drug discovery.

Sunil Thakur, Partner-Quadria Capital, said health-seeking behaviour had increased.

The Indian healthcare sector is underpenetrated compared with global standards, and a lot of potential themes have emerged in localisation, outsourcing and digital health. Tejasvi Ravi, Healthcare Lead-Lightrock India, said there was a lot of urge for convenience in healthcare and that was pushing the digital health space.

C. Venkat Subramanyam, founder-Veda Corporate Advisors, said of late, there had been an increasing trend of merger and acquisition in the healthcare space. That is because with private equity investment in the healthcare sector, valuations had gone up and selling stakes would be an attractive option. Also, the Gennext in the healthcare business are open to selling stakes, he added.

The experts also discussed the challenges in rural healthcare and regulatory challenges in the insurance and medical devices segment.