<div><strong>CH Unnikrishnan</strong></div><div> </div><div>India's healthcare industry, which is estimated to grow by at least 16 per cent from $73.92 billion in 2011 to $280 billion in 2020, will see its workforce demand doubling to 7.4 million in the next 6 to 7 years, according to a report released by Federation of Indian Chambers of Commerce and Industry (Ficci) in collaboration with consultancy firm KPMG. The healthcare report titled -- Healthcare: The Neglected GDP Driver -- also says the medical travel market to triple to $10.6 billion in 2019 from $2.8 billion in 2014, with a 30 per cent increase a year. </div><div> </div><div>“The aim of this report was to highlight that investment in healthcare propels overall economic growth and is more than just social expenditure in India. Improvements in the health of citizens contributes to overall economic prosperity of the nation, says Nilaya Varma, partner and head, Government and Healthcare, at KPMG in India.</div><div> </div><div>According to Varma, healthcare is one of the largest employers in India at present. "The sector has attracted billions of dollars from private ventures, foreign investors and inflow of equity capital through numerous deals in the past year. Additionally, medical tourism is growing well and is contributing significantly to the overall growth in the sector,” he added.</div><div> </div><div>The FICCI-KPMG report also highlights how a robust healthcare system drives the growth of the country's gross domestic production (GDP) in the presence of adequate investments and an encouraging environment by not only acting as a productivity and employment generator, but also as a magnet to attract foreign exchange earnings and provide opportunities for innovation and entrepreneurship. With Indian healthcare workforce expected to double to 7.4 million in 2022 from 3.6 million in 2013 and the sector’s revenue expected to grow by a robust 16 per cent annual growth to 280 billion in 2020 from $73.92 billion in 2011, Indian healthcare sector has already established itself to be an important contributor to nation’s GDP.</div><div> </div><div>Another important finding of the report is that increasing investments, growing innovation and entrepreneurship are expected to enhance the size of the healthcare market, thereby increasing the contribution of the healthcare sector to India’s GDP. India has received an aggregate of $377.3 billion in foreign direct investment (FDI) from April 2000 to May 2015. Hospitals and diagnostics centres received FDI of $3.1 billion, or about 1.21 per cent of the FDI inflow. The share of healthcare FDI has almost doubled since 2011, highlighting the growing interest of foreign players in the sector.</div>
