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Corporate Strategy | "How India & Indian Corporate Can Tap Emerging Global Healthcare Market"

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How India & Indian Corporate Can Tap Emerging Global Healthcare Market

- by Jyoti Singh & Sugandha Bhandari *

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2. Using the latest technical equipment and the services of highly-skilled medical personnel, these hospitals are in a position to provide a variety of general as well as specialist services.

3. These services are available at extremely competitive prices, encouraging patients not only from developing countries but even from a number of developed ones to come to India for specialized treatment.

4. In the next 10 years, tertiary care in India will be predominantly private healthcare and extensive public & private partnerships. The secondary care would be private & public healthcare and selective public & private partnerships. The primary care would be predominantly public, especially in the rural areas.

Economic Factors

So, why is there a Revolution in Healthcare in India?
First, there are economic factors that make India an exciting market.

  • Since healthcare is dependent on the people served, India's huge population of a billion people represents a big opportunity.

  • Today, people are spending more on healthcare and preferring private services to government ones.

  • Hospitals in India are running at 80-90% occupancy. With the demand for healthcare far exceeding supply, India's healthcare industry is expected to grow by around 15% a year for the next six years

  • Hospitals in India conduct the latest surgeries at a very low cost

  • Corporate entities entering the healthcare sector, introducing managerial practices and tools are showing a marked preference for professionals, leading to the expansion of the hospital management education industry.

    The shortage of qualified and trained nursing staff is a factor that is affecting hospitals across the country. ICRA notes that many hospitals have been responding by operating at below-norm nurse to patient ratios, stretching nursing staff working hours, and even recruiting partly-skilled nursing personnel.

    Government Factors

  • To encourage R&D, Government extended tax holiday to R&D companies. Restriction of full exemption being limited to only 1% of last year's export, turnover is also lifted for R&D units

  • Next


    * Contributed by: -
    Jyoti Singh & Sugandha Bhandari,
    PGDBM 2006,
    IMT, Ghaziabad.


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