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Submitted By : LEROY CORRIEA 08 IMR DEVISREE NAIR 17 IMR VIRAJ WADKAR 40 IMR
Economic environment
Growing incomes Much of India's healthcare expenditure comes Irons private patients. Primarily the higher-income households. The proportion of households hi the low -income group has declined significantly. Rising incomes are leading to a rise in the rich and middleincome groups. And they use expected to form 49 % of total households in financial
year 2010. as compared with 33 it at financial year 2004. Thus driving growth. A survey conducted by NCAER. An independent economics research agency. Suggests that per-capita expenditure on healthcare rise with higher education levels Significant investment opportunities are present for the private sector Limited government investment provide, significant opportunities for private healthcare service providers as large investments are required to scale up the India' s healthcare infrastructure. Our healthcare infrastructure needs substantial investment. The government is likely to meet only 15-20% investment in hospital beds. Assuming 10-15 % commitment front international donors there would be a shortfall of 70 % Which can be funded by private companies. Presently the majority of healthcare services in India are provided by the private sector. Public spending on healthcare will continue to rise. but chances of large and sustained increases am low.
Socio-cultural Environment
Increase in the life expectancy and ageing population In the domestic market. Health spending will be sustained by two demographic trends namely increased life expectancy and an ageing population. In India the proportion of the population aged 65 years and met is also on the rise. Although the rate of ageing in India is slower than the developed countries the large size of our population nukes any increase significant in terms of numbers and hence also at terms of market potential. A shift to lifestyle-related disease, will he the drivers for higher healthcare spends The shift in disease profiles front infectious diseases to lifestyle-related diseases is expected to raise expenditures for treatment. On the basis of demographic trends and disease profiles. Lifestyle disease, cardiovascular diseases. Cancer and asthma have become the most important segments and in-patient expenditure is expected to represent nearly 50%. Of total healthcare expenditure Higher Population and Literacy India has the 2nd largest population in the world. It is estimated that by 2050 we will be having the largest population in world. This factor displays a huge opportunity for the health sector in terms of sheer volume. Also them is huge urban shift in India the private hospital are mainly located in the urban areas and there is rural to urban shift 26% which greatly increases the Size of the target market for the minute players.
Rising literacy in India is improving health awareness about lifestyle related diseases which tend to be more costly to treat than infections.
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