Headline Published On Aug 30, 2013

Investments required

Abstract

India lags behind several global benchmarks for global healthcare delivery. In terms of both healthcare infrastructure and
manpower, the country faces severe shortages, which is reflected in the fact that India ranks below several developing
countries including China, Brazil and Vietnam in terms of both beds to population and physicians to population ratios. In order
to meet benchmarks set by the World Health Organisation for healthcare infrastructure, India would require an investment of
over Rs 14 trillion over the next 5 years.

Key Issues

- How do healthcare delivery standards in India compare to global norms?

- What scale of investments are required for the country to achieve global benchmarks for healthcare delivery?
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 No part of this Report may be published/reproduced/distributed in any form without CRISILs prior written approval.

India lags global norms in terms of healthcare delivery services

India trails several global benchmarks for healthcare delivery, including manpower and infrastructure.

Hospital beds

Source: WHO World Health Statistics 2013, CRISIL Research

Physicians

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 No part of this Report may be published/reproduced/distributed in any form without CRISILs prior written approval.

Source: WHO World Health Statistics 2013, CRISIL Research

Nursing personnel

Source: WHO World Health Statistics 2013, CRISIL Research

As seen above, India lags even developing countries such as China, Brazil and Vietnam on certain parameters.

Investment of Rs 14 trillion required to reach global median of 30 beds per 10,000 persons

During the 2007-08 to 2012-13 period, the total number of beds increased at a CAGR of 3 per cent to reach 1.2 million. Over the
next five years, CRISIL Research estimates that the number of beds would increase at a CAGR of 4 per cent to reach 1.4 million by
2017-18. Assuming an average capital expenditure of Rs 3.7 million per bed (excluding land cost), CRISIL Research believes that
Rs 1,200 billion will need to be invested in healthcare delivery during the 2013-14 to 2017-18 period. However, in order to reach the
global median of 30 beds per 10,000 persons, an investment of Rs 14 trillion would be required.

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