The Indian healthcare sector is expected to grow at a compound annual growth rate of 17 per cent during 2011-2020, the Lok Sabha was told on Friday.
“As per the India Brand Equity Foundation, the Indian healthcare sector is expected to grow at a compound annual growth rate (CAGR) of 17 per cent during 2011-2020 to touch $280 billion by 2020,” health minister J P Nadda said in a written reply.
He said the government has recently reviewed the policy on FDI in pharma sector and has allowed FDI up to 100 per cent under the automatic route for the manufacturing of medical devices.
“Under the Twelfth Five Year Plan, the Government has included health sector for availing the Viability Gap Funding (VGF) up to 20 per cent of the total cost of the project under the PPP schemes. This offers scope for the PPP activities and projects in health sector,” Nadda said.
Replying to another question, he said that the budgeted outlay for health and family welfare sector has increased from Rs 10733.56 crore in 2005-06 to Rs 29,653 crore in 2015-16.
“As per World Health Statistics 2014 published by WHO, ‘Out of Pocket’ expenditure accounts for 60 per cent of total expenditure on health in India in 2011. Public expenditure on health as percentage of total expenditure on health in India in 2011 stands at 30.5 per cent,” the Minister said.
As per the 12th Five Year Plan document, total public funding by Centre and states (plan and non-plan) on core health is envisaged to increase to 1.87 per cent of GDP by the end of the plan period.
“Viewed in the perspective of the broader health sector, the total Government expenditure as a proportion of GDP is envisaged to increase to 2.5 per cent by the end of the Twelfth Plan,” Nadda said.