Technology Will Play Pivotal Role in Addressing Gaps in India’s Healthcare Sector
November 1, 2023
B Capital and BCG’s new report ‘A Digital Pill for Revolutionizing Healthcare’ outlines key growth drivers in India’s healthcare sector.
INDIA, November 1, 2023 — According to A Digital Pill for Revolutionizing Healthcare by B Capital and Boston Consulting Group (BCG), India’s digital healthcare industry is expected to grow ten times from US$2.7 billion in 2022 to US$37 billion by 2030.
The report outlines several key factors fueling this growth, including:
- Emergence of new digital healthcare models customized for the Indian environment
- Insured households are expected to grow from ~37% in 2022 to ~69% in 2030, driving demand for services
- Government spend on healthcare, which has almost doubled from 2018 to 2022, is expected to increase to 2.5% of GDP by 2025
A significant part of the healthcare market’s growth is expected to come from healthtech, which could increase tenfold – from US$2.7 billion in 2022 to US$37 billion in 2030. Rapid tech penetration and rising consumer preference for online healthcare delivery will catalyze the adoption of digital health.
“Technology is the answer to addressing gaps in India’s physical care infrastructure,” said Karan Mohla, General Partner at B Capital, who leads the firm’s early-stage investments in India and South-East Asia. “By developing and scaling innovative treatment models and enhancing financial access through insurance, digital healthcare emerges as the linchpin for the sector’s growth. With digital health-driven solutions, we can extend essential services to hundreds of millions.”
“Indian healthcare is at a unique moment in its evolution. COVID has put the importance of healthcare right on top of the attention of citizens and government alike. COVID has also created an irreversible change in how healthcare is consumed, where now both patients and doctors are comfortable leveraging technology for healthcare interactions. At the same time, there is an ecosystem of innovation developing which can be described as ‘thousand flowers blooming’, some of these models have also gathered substantial scale. The government has firmly declared its intent to leverage technology to define the next phase of the health system in India by investing in the end-to-end health stack through the Ayushman Bharat Digital Mission. All these developments open up a sure change in trajectory in the development of digital health and a great opportunity to solve the erstwhile intractable challenges in Indian healthcare of access and affordability. In this report, we set out to define the opportunity, outline some key trends, and lay out the contours of how we see these models developing. We look forward with excitement and optimism to the opportunities that lie ahead,” said Priyanka Aggarwal, Managing Director & Senior Partner (New Delhi), Boston Consulting Group.
Continued investments in the country’s startup ecosystem will be important in India’s digital healthcare transformation. B Capital recognizes this need and deploys a unique value-add approach to global venture and growth investing across the region through its strategic partnership with BCG and internal platform team, which provides guidance on strategic, capital and people advisory initiatives.