control cost and enhance patient engagement, healthcare providers are focussing on the technological aspect of healthcare delivery.
Digital health knowledge resources, electronic medical record, mobile healthcare, hospital information system are some of the technologies gaining acceptance in the sector. Going forward, the healthcare sector's spending on IT products and services is expected to rise from USD 53 billion in 2012 to USD 57 billion in 2013.
Telemedicine is also a fast-emerging sector in India. In 2012, the telemedicine market in India was valued at USD 7.5 million, and is expected to rise at a CAGR of 20 percent to USD 18.7 million by 2017. With increased private participation, the healthcare sector has also witnessed rise in FDI inflows. As per law, 100 per cent FDI is permitted for all health-related services under the automatic route.
Demand growth, cost advantages and policy support were instrumental in attracting FDI inflows into the healthcare sector. During April 2000 - March 2013, FDI inflows for drugs and pharmaceuticals stood at USD 10.3 bn, while inflows into hospitals and diagnostic centres, and medical appliances stood at USD 1.6 bn and USD 0.6 billion, respectively.
India's primary competitive advantage over its peers lies in its large pool of well-trained medical professionals in the country. Also India's cost advantage compared to peers in Asia and Western countries is significant-- cost of surgery in India is one-tenth of that in the US or Western Europe.
India's competitive advantage also lies in increased success rate of Indian companies in getting Abbreviated New Drug Application (ANDA) approvals. India also offers vast opportunities in R&D as well as medical tourism, the report said.