India has come a long way in the last six decades since independence, especially in terms of improving the health of its citizens. Many factors, such as improved nutrition, robust investment by private players in building the healthcare infrastructure, the swelling middle class segment and innovations in medical technologies, have contributed to this improvement. While the government has taken significant measures to improve access to quality care, the sector is still multi-layered and complex, which makes it difficult to unlock its true potential and provide quality services.
Through this report, KPMG in India and Federation of Indian Chambers of Commerce and Industry (FICCI), aim to amend the way stakeholders view healthcare funding – from mere expenditure that eats into the gross domestic production (GDP) pie to a beneficial form of investment that propels economic growth of a nation. This joint study evaluates the progress of health sector in India in recent years and assesses the scope of the sector in terms of human productivity enhancer, foreign exchange generator, booster for innovation and entrepreneurship as well as employment opportunities, and hence an important driver of GDP for India. This paper aims to provide a view to help envision investment into the health of citizens, as an investment to improve economic growth of the nation, and not as a social expenditure.
Healthcare sector has lately been providing numerous opportunities to various entrepreneurs across the country. Start-ups have the potential to positively impact the GDP as well as redefine the way in which healthcare is delivered. This paper emphasizes that India needs to start looking at healthcare investments as a boost to the health of the country, which in turn can lead to better productivity, provide employment to millions, generate forex for the country and offer entrepreneurship opportunities to the nation’s youth.
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