Macro Callouts for Healthcare Investing in Indial

India will have 1.2 billion people in the middleincome segment with over 42 per cent of the population in urban cities, by 2030. India’s healthcare and lifesciences market is estimated to reach 285 billion by 2028 implying a growth that is twice our GDP growth. These developments will lead to an estimated 30-35 billion in private capital investment getting allocated to the sector over the next 5 years.

Visalakshi Chandramouli, Managing Partner, Tata CapitalHealthcare Fund

India’s healthcare and life sciences sector is one of the fastest-growing healthcare and life sciences markets in the world. By 2030, India will have ~1.2 billion people in the middle-income segment with over 42 per cent of the population in urban cities. While on the one hand, the sector today stands at a threshold of significant supplydemand mismatch, on the other hand there are signs of improving affordability and availability of talent pool. This makes the sector a compelling investment opportunity for both private and public market players. As we see today, India’s healthcare and lifesciences market is estimated to reach $285 billion by 2028 implying a growth that is twice our GDP growth.

This growth trajectory for the sector is underpinned by several favourable macro factors namely 1) Demographics - increasing affluence among the population; 2) Disease Burden - a dual disease burden; 3) Insurance Penetration improving insurance penetration; 4) Infrastructure: gaps in healthcare infrastructure; 5) Government Initiatives - government’s focus on healthcare and 6) India’s competitive advantage – low cost and availability of talent.

Delving deeper into macro callouts

1) Demographics: