The Enigma Called Indian Medical Market

<p style="text-align: justify;">Do you find the Indian healthcare market attractive? &nbsp;</p><p style="text-align: justify;">Why not ! &nbsp;</p><p style="text-align: justify;">The population size is big, CAGR is attractive, demographics are favorable and the future seems bright, nor too many entry barriers and not very strict regulations. &nbsp;</p><p style="text-align: justify;">Are all the checkpoints ticked? &nbsp;</p><p style="text-align: justify;">Yes and no.&nbsp;</p><p style="text-align: justify;">The great Indian medical market is an enigma. Make an excel sheet model based on the European, American, or Japanese parameters, and you will find that it is bound to fail. I have seen them fail too often. &nbsp;</p><p style="text-align: justify;">If you have a deep pocket and ready for money burn, prepared to replan and readjust, and do not rethink, you might find that elusive light at the end of the tunnel. Otherwise, it is not a tunnel, it is a cave.&nbsp;</p><p style="text-align: justify;">Let me give you an example of the Indian home healthcare market in which my company is one of the oldest, most well-known, and most senior surviving players. We have been the pioneers since 2007. In these 15 years, various companies, individuals, and healthcare players backed by funds of all different kinds tried their hands, burnt their fingers, and vanished.</p><p style="text-align: justify;">The names which drew all types of attention and bullish sentiments (due to effective google management and paid media coverage) initially gave up after some time as the numbers needed to add up to the expectations. &nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Parameters of Indian Home Healthcare Industry</span></h2><p style="text-align: justify;">Most of these had initially looked very attractive on the Excel sheet. Probably that is why they were funded. But no funds could manage the reality of unattractive numbers for too long. Almost no parameters of the Indian home healthcare industry mimic the parameters of the markets mentioned above. &nbsp;</p><p style="text-align: justify;">The significant difference is that, unlike the advanced and developed markets, home care in India is funded mainly out of the patient's pocket, not by the Insurer. Add to that the Indian joint family system and the sentiment that the family members must look after that patient. Moreover, most caregivers come from such backgrounds, which are manageable in the hospitals under continuous strict supervision, but very difficult to manage in the home setting (without constant supervision).&nbsp;</p><p style="text-align: justify;">If you plan to develop a doctor-driven product or concept, you will be in for various other surprises such as the facts and factors that are uncommon in Europe and the US, our regulation, control, and doctor-patient relationships are way different.&nbsp;</p><p style="text-align: justify;">Considering all the above, tread carefully if you are planning to enter the Indian Medical Market. Don&rsquo;t let your perceptions drive you. Find someone who can help you keep your ear to the ground, and be prepared for big surprizes.</p><p style="text-align: justify;">We are ready, but at the same time, we are not that ready. That&rsquo;s why I used the word 'Enigma' in the title.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><em><span style="font-size: 10pt;">This article was contributed by our expert <a href="">Vivek Sharma</a></span></em></p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Vivek Sharma&nbsp;</span></h3><h2 style="text-align: justify;"><span style="font-size: 12pt;">1. What is the status of India's healthcare system?</span></h2><p style="text-align: justify;"><span style="font-size: 12pt;">Estimates vary from 150 billion USD-350 billion USD. A huge portion of this is the hospital business, which is divided into Corporate and Government. </span></p><p style="text-align: justify;"><span style="font-size: 12pt;">The government institutions also outsource a lot many services. Moreover, the government spending also includes various kinds of schemes like Ayushman Bharat at the central level. Then there are various such schemes at the state level.&nbsp;</span></p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How big is the home care market in India?</span></h2><p style="text-align: justify;">About 10 billion USD-20 billion USD. There is no clear definition of home care, it is very subjective. Some reports include only the treatment at the home; however, some others also include home-delivered medicines and pathological tests conducted at home.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. Which segment accounted for the largest Indian home healthcare market share?</span></h2><p style="text-align: justify;">The largest segment is Home Healthcare Services.</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Vivek Sharma

Core Services

Human insights are irreplaceable in business decision making. Businesses rely on Knowledge Ridge to access valuable insights from custom-vetted experts across diverse specialties and industries globally.

Get Expert Insights Today