MAKE IN INDIA

Working towards building a healthier India

The Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well as private players.

Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving the healthcare market in India

• The Indian Healthtech industry was valued at $1.9bn in 2020. By 2023, it is expected to reach $ 5B by 2023 at a CGAR of 39%

• The digital healthcare market in India was valued at INR 116.61 Bn in 2018, and is estimated to reach INR 485.43 Bn by 2024, expanding at a compound annual growth rate (CAGR) of ~27.41% during the 2019-2024 period

• By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $32 bn from $5 bn in 2012

• During 2015-20, the inpatient healthcare market is expected to grow at a CAGR of 13%

• The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%

• Over the next 10 years, National Digital Health Blueprint can unlock the incremental economic value of over $200 bn for the healthcare industry in India

• India has the world’s largest Health Insurance Scheme (Ayushman Bharat) supported by the government

• India’s comprehensive investment in Medical Education: INR 17,691.08 Cr invested in 157 new approved Medical Colleges since 2014

• Ayush sector has witnessed significant growth from $3 bn in 2014 to $18 bn in 2022

100% FDI is allowed under the automatic route for greenfield projects. For investments in brownfield projects, up to 100% FDI is permitted under the government route.

Defending the World

“The Indian Defence sector, the second largest armed force is at the cusp of revolution. The Government has identified the Defence and Aerospace sector as a focus area for the ‘Aatmanirbhar Bharat’ or Self- Reliant India initiative,with a formidable push on the establishment of indigenous manufacturing infrastructure supported by a requisite research and development ecosystem. The vision of the government is to achieve a turnover of $25 bn including export of $5 bn in Aerospace and Defence goods and services by 2025.

India is positioned as the 3rd largest military spender in the world, with its defence budget accounting for 2.15% of the country’s total GDP. Over the next 5-7 years, the Government of India plans to spend $ 130 Bn for fleet modernisation across all armed services. As per Union Budget 2022-23,$ 70.6 bn was allocated to the Ministry of Defence. In line with the selfreliant India initiative, the share of domestic capital procurement, which was earmarked at 64% in 2021-22 has been enhanced to 68% of the Capital Acquisition Budget of the Defence Services for FY 2022-23.

To support the domestic defence industry the government aims to ensure transparency, predictability, and ease of doing business by creating a robust eco-system and supportive government policies. Towards this end the government has taken steps to bring about de-licensing, de-regulation, export promotion and foreign investment liberalisation. Ministry of Defence has also notified three ‘Positive Indigenisation lists’ comprising of 310 defence equipments to be manufactured locally. Additionally, to promote export and liberalise foreign investments FDI in Defence Sector has been enhanced up to 74% through the Automatic Route and 100% by Government Route.

The government has also announced 2 dedicated Defence Industrial Corridors in the States of Tamil Nadu and Uttar Pradesh to act as clusters of defence manufacturing that leverage existing infrastructure, and human capital. Further, to enable innovation within Defence & Aerospace eco-system there are supportive government schemes such as iDEX ((Innovations for Defence Excellence) and DTIS (Defence Testing Infrastructure Scheme).

For further details, please refer FDI Policy

Amplifying growth

The world’s fastest-growing industry, Electronics System Design and Manufacturing (ESDM) continues to transform lives, businesses, and economies across the globe. The global electronic devices market is estimated to be $ 2.9 Tn in 2020. India’s share in the global electronic systems manufacturing industry has grown from 1.3% in 2012 to 3.6% in 2019.

Technology transitions such as the rollout of 5G networks and IoT are driving the accelerated adoption of electronics products. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have raised the demand for IoT in the electronics devices market and will undoubtedly usher in a new era for electronic products.

• India is expected to have a digital economy of $ 1 Tn by 2025

• India committed to reach $300 bn worth of electronics manufacturing and exports by 2025-26

• One of the largest electronic devices industries in the world anticipated reaching $ 300 Bn by FY 2025-26

• India’s exports is set to increase rapidly from $ 10 Bn in FY21 to $ 120 Bn in FY26.

• India’s domestic production in electronics has increased $ 29 Bn in 2014-15 to $ 67 Bn in 2020-21.

• Production of mobile handsets is further slated to increase in value from $ 30 Mn in FY 21 to $ 126 Mn in FY 26.

• India produces roughly 10 mobile phones per second which amounts to ~$ 930 worth of production every second.

• India’s semiconductor market is expected to increase from ~$ 15 Bn in FY20 to ~$ 110 Bn in FY30, growing at a CAGR of 22%.

100% FDI is allowed under the automatic route. In the case of electronics items for defence, FDI up to 49% is allowed under automatic route and beyond 49% through the government approval.