According to the independent and professional investment information and credit rating agency, ICRA Limited (ICRA), the long-term outlook for the Indian hospital sector is stable with annual revenues likely to grow at 12-14 per cent over the next five years on account of rising demand and medical tourism. The hospital industry in India stood at Rs 4 trillion (US$ 61.79 billion) in 2017 and is expected to reach Rs 8.6 trillion (US$ 132.84 billion) by 2023. India’s unorganized primary healthcare system is presently worth $30 billion and is growing at least 25 percent a year.
Apart from the size of the market, another striking fact is the hunger for innovation by entrepreneurs and patients alike. This is why multi-specialty chains and diagnostic laboratories are turning out to be game changers in this domain.
Also, unlike many restrictive Indian industries, from insurance to real estate and telecoms, there are no limits on foreign ownership in healthcare.
Healthcare Is The Most Lucrative Destination For Moneybags In India
The healthcare sector in India is all set to be the next boom area in the economy. With a growing population interested in personal health and hygiene, government efforts that prioritize health policy and spending and a significant, if underutilized, population of medical professionals, the health economy in the country is proving to be a magnet for private equity and venture capital investments. Goldman Sachs, Warburg Pincus, Sequoia Capital and the Government of Singapore Investment Corp are among investors that pumped $520 million into India’s basic healthcare industry this year, compared with $137 million in 2011, according to Thomson Reuters data.
In my previous blog posts, I’d explained how the Indian Government has emerged as a key market force, with funds focused specifically on healthcare. The national budget for the year 2018-19 has allocated funds specially for healthcare entrepreneurship and innovation. Add to this, limited grant funding, philanthropic & other public-sector funding agencies, investors of all types (high-net-worth individuals and angel investors, venture capital funds, commercial private equity funds, impact investors), initiatives like tax rebates for new businesses, incentives for investors who support early-stage organizations and a growing spate of public-private partnerships and academic institutions, it is easy to see why the medical sector in India is poised for significant bolstering.
Why Is It So Hard For Organised Healthcare Providers And Start-Ups Alike To Succeed In India, Inspite Of Obvious Market Potential Here?
You have decided to enter the Indian market, much encouraged by the initiatives of Prime Minister Narendra Modi’s government. You have engaged the consumer, segmented the and market and now stand poised to take the next step, when media gets buzzing with the GST bill. In the fast changing Indian markets, this is just a reminder to you.
GST = Get your Strategy Together!
A very important third step in Modi’s Marketing Manual is CREATE. Read about it more at http://wp.me/p6tQjj-3o.
Case in Point:
The Prime Minister is a firm believer in the power of technology. Since taking office in May 2014 the Prime Minister has sought to increase the usage of technology in the working of the Government. He launched the Digital India initiative, an all-encompassing programme, to invigorate the working of the government with latest technology and provide solutions to people’s problems through the power of technology. The Prime Minister has started a unique initiative PRAGATI, a technology based multi-purpose and multi-nodal platform where projects are monitored and people’s problems are addressed. On the last Wednesday of every month, the Prime Minister himself sits down with top officials during the PRAGATI sessions and covers substantial ground in a wide range of sectors. This has made a very positive difference in the lives of many Indians.
Like PM Modi, do you have an Automation, Technology & Engagement Strategy (A.T.E. Strategy) in place to capture a large market share?
Here are a couple of pointers to get you started:
It is common knowledge that the proven channels that helps businesses top the ranks in digital marketing ROI and which offer them a cost-effective way of reaching out to customers are, email marketing, closely followed by social media listening. Automation technologies for data storage and sharing as well as for measurement & analytics can help businesses perform better and deliver results no one expected.
Do you have an integration mechanism ready for this in your marketing strategy?
Navroz Mubarak, peeps. May this New Year be filled with success, prosperity & happiness.