The healthcare industry is not witnessing any significant impact from the ongoing war in the West Asia, said Ameera Shah, president of NATHEALTH, an industry body comprising hospital chains, diagnostic centres, and other stakeholders in the healthcare ecosystem.
“Hospital chains are stocking up on critical medicines, and diagnostic companies are buying extra kits and reagents to meet the needs in case the conflict prolongs. We are also working with the government to prepare a list of important things required for the healthcare sector,” she said.
Supply Chain Fracture
Even though NATHEALTH has said that the industry remains largely unaffected, the Association of Indian Medical Device Industry (AiMeD) wrote a letter to the revenue secretary on Monday asking for an urgent fiscal relief to mitigate the impact of Strait of Hormuz blockade on MedTech sector.
The AiMeD letter highlighted that the manufacturers are reporting unprecedented increases in key raw materials and energy inputs such as nearly 50% rise in critical plastics used in syringes, IV sets, catheters, and examination gloves. “The tensions in the Middle East have sharply increased the input costs and strained working capital for manufacturers of essential medical disposables. This includes over 20% increase in packaging materials and diesel-based self-generated power,” it said.
Meanwhile, NATHEALTH on Wednesday released two reports – with Bain & Co and Praxis Global Alliance each – that pointed out that while India’s healthcare sector could approach $700 billion by 2030 (up from $300 billion in FY25), the financing architecture supporting this growth remains fragmented and underpenetrated, with out-of-pocket spending still accounting for a large share of healthcare expenditure.
“Despite our progress, nearly 44% of health expenditure in India still comes directly from the patient’s pocket, and over 400 million people remain without effective coverage. By expanding private insurance penetration and leveraging digital health infrastructure, we can reduce the financial shock of medical emergencies for millions of families,” Shah said.
$1 Trillion Dividend
At the same time, Bain & Co report said that India loses up to $1 trillion annually as opportunity cost due to high disease burden. To reach the next frontier of health outcomes, the report estimates that India will need to nearly double current health investment (CHE), from approximately 3-4% of GDP today to 6-7% over time, in line with benchmark countries.
“We have made important progress in improving access and outcomes over the past decade, but the next phase requires sharper focus. The fact that raising health-adjusted life expectancy (HALE) from 61 to 70 could deliver a five-fold increase in GDP per capita shows how critical it is to double down on prevention, strengthen delivery capacity, and scale digital health across the system,” said Parijat Ghosh, head of Bain & Company’s Asia-Pacific Healthcare & Life Sciences practice.