Summary:
India’s healthcare and pharmaceutical industry has seen remarkable investment inflows totalling Rs. 2,61,900 crore (US$ 30 billion) from 2022 to 2024, with hospitals emerging as a primary driver of this growth. According to a report by Grant Thornton Bharat and the Association of Healthcare Providers of India (AHPI), hospitals played a crucial role, accounting for Rs. 58,840 crore (US$ 6.74 billion) in merger and acquisition (M&A) deals and Rs. 43,310 crore (US$ 4.96 billion) from private equity (PE) investments, making up 40% and 38% of total transactions, respectively. Hospitals also raised Rs. 4,070 crore (US$ 466 million) through initial public offerings (IPOs) and through foreign direct investment (FDI) in healthcare and diagnostics Rs. 27,140 crore (US$ 3.2 billion) was raised.
The report points to increasing consolidation among multispecialty hospitals and the rising adoption of advanced technology as major factors driving investor interest. Additionally, single-specialty segments like nephrology, oncology and in-vitro fertilisation (IVF) attracted PE investments worth Rs. 12,220 crore (US$ 1.4 billion) over the two year period. Despite this growth, challenges remain, particularly the uneven distribution of healthcare infrastructure, with 60% of hospital beds concentrated in metro cities while 70% of the population lives in non-metro areas. Addressing these gaps through digital health innovation, rural healthcare development and creative financing models will be essential for achieving balanced healthcare access nationwide.
Source: IBEF
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