NITI Aayog, a policy think tank of the Government of India, has released a report outlining the range of investment opportunities in various segments of India’s healthcare sector, including hospitals, medical devices and equipment, health insurance, telemedicine, home healthcare and medical value travel.

The report was released by NITI Aayog Member Dr VK Paul, CEO Amitabh Kant, and Additional Secretary Dr Rakesh Sarwal.

In the first section, this report provides an overview of India’s healthcare sector, including insights about its employment generation potential, the prevailing business and investment climate as well as the overarching policy landscape.

The second section highlights the key drivers of growth for the sector and the third elaborates upon the enabling policies and investment opportunities in seven key segments—hospitals and infrastructure, health insurance, pharmaceuticals and biotechnology, medical devices, medical tourism, home healthcare as well as telemedicine and other technology-related health services.

In the hospital segment, the expansion of private players to tier-2 and tier-3 locations, beyond metropolitan cities, offers an attractive investment opportunity.

With respect to pharmaceuticals, India can boost domestic manufacturing, supported by recent Government schemes with performance-linked incentives, as part of the Aatmanirbhar Bharat initiative. In the medical devices and equipment segment, expansion of diagnostic and pathology centres as well as miniaturized diagnostics have high potential for growth.

Further, medical value travel, especially wellness tourism, has bright prospects, given India’s inherent strengths in alternative systems of medicine. Technology advancements such as Artificial Intelligence (AI), wearables and other mobile technologies, along with Internet of Things, also offer numerous avenues for investment.