India Market Watch: Healthcare, Pharmaceutical Industries Growing, GDP to Exceed 7.3 Percent Growth
Digital Technology to Boost Healthcare Industry
India’s healthcare industry has been growing at a tremendous pace – the total industry size is forecast to reach US $160 billion by 2017, and US $280 billion by 2020. A convergence between the Internet of Things (IoT) and Big Data analytics has recently boosted the adoption of digital technology in the form of wearable gadgets (watches, goggles, clothes, smartphone apps and other accessories that monitor vitals—heart rate, pulse, respiratory rates, and assess fitness) and a proactive approach towards their health by consumers. This change in the Indian consumer mindset has already been capitalized by a few savvy players, including local start-ups and foreign companies.
IoT and Big Data analytics can revolutionize India’s healthcare industry by analyzing data generated from consumer devices and gadgets, and utilize that data to make smart business decisions, increase clinical efficiency, reduce costs, and improve access to quality care. In a country with lagging healthcare infrastructure in its villages, where almost 70 percent of the Indian population reside, digital solutions present a new model of care. What is required is the ability of tech companies to meet this challenge and harness the business opportunity with strategies that amalgamate the right incentives, people, workflows, and data.
Pharmaceutical Market Registers 15 Percent Growth in October
The Indian pharmaceuticals market grew at 15 percent in October, maintaining a consistent growth rate. The Indian drugs market is also the world’s third-largest in terms of volume and 13th largest in terms of value, as per a recent report by Equitymaster. Among the biggest contributors to this market are drugs that treat infections, cardiovascular diseases, and gastrointestinal disorders. These contribute to about 36 percent of the total market, at a value of close to US $15 billion in October.
Moreover, the Moving Annual Turnover shows that Indian companies grew at 21.2 percent in October, and occupied the top seven out of the top ten pharmaceutical companies. The biggest Indian pharmaceutical is Sun Pharma with a share of 7.87 percent, followed by Abbott, Cipla, Mankind and Alkem. Foreign companies have also registered a high growth rate with Novartis India reporting a 600 percent jump in its net profit at Rs 103.82 crore (US $15 million) for the quarter that ended September 30, 2015.
India’s GDP to Exceed 7.3 Percent Growth
The Finance Minister Arun Jaitley has expressed optimism at India’s growth trajectory, forecasting an economic growth of 7.3 percent or higher. This comes at the back of various economic reforms pushed forth by the government, and an improvement in the ease of doing business in India. This optimism over India’s growth and economic stability is shared by the IMF, as the country’s inflation has declined, its current account deficit is in check, and international reserves are sufficient. Even as the rural demand has been impacted by reduced rains, the Wholesale Price Index (WPI) has continued to drop, falling to a negative -3.81 percent annually as compared to -4.54 percent in the previous month of September.
Important macro-economic and structural measures such as the diesel price deregulation, creating more flexible labor markets, coal sector reforms, adoption of the flexible inflation targeting framework by the RBI, increased infrastructure spending, and programs to enhance financial inclusion have altogether projected a positive growth story for the Indian economy.
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