Healthcare has emerged as one of the largest service sectors in India. In 2004, national healthcare spending equaled about 5.2 per cent of nominal GDP, or about US$ 34.9 billion. Healthcare spending in India is expected to rise by 12 per cent per annum through 2005-09 (in rupee terms) and scale up to about 5.5 per cent of GDP, or US$ 60.9 billion, by 2009. Other estimates suggest that by 2012, healthcare spending could contribute 8 per cent of GDP and employ around 9 million people.
The healthcare industry in the country, which comprises hospital and allied sectors, is projected to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size of US$ 35 billion, according to a Yes Bank and an industry body report published in November 2009. The sector has registered a growth of 9.3 per cent between 2000-2009, comparable to the sectoral growth rate of other emerging economies such as China, Brazil and Mexico. According to the report, the growth in the sector would be driven by healthcare facilities, both private and public sectors, medical diagnostic and path labs and the medical insurance sector. According to the report, diagnostics would contribute US$ 2.5 billion to the healthcare industry by 2012.
Sources: US Census Bureau, Economic Intelligence Unit, Internal data