Dynamics of healthcare entrepreneurship in India

Indian Healthcare is one of the fastest-growing sectors across the country.


Tealfeed Guest Blog

3 years ago | 3 min read

Indian Healthcare is one of the fastest-growing sectors across the country. The tier II & tier III cities are increasingly becoming the point of focus for the healthcare players. This is largely due to the tax sops, a considerable rise in the disposable incomes across the country, and a lack of quality healthcare infrastructure here.

There are a conversation and planning of medical tourism where health cities are being designed and executed with bed strengths of 1500 to 2000. This magnanimous scale was unheard of in the private healthcare sector. These designs are supported with advanced technical infrastructure including better nursing communication systems, top-notch patient monitoring devices, or telemedicine that makes low-cost medical care for patients in the remote areas possible.

Considering the huge population, the customer base in India is big and it offers lucrative opportunities for entrepreneurship in the Indian healthcare arena. In spite of this, inexplicably the growth of entrepreneurship in healthcare has been considerably slow. However, in recent times with the availability of apt funding, the healthcare sector in India is beginning to see a marked rise of entrepreneurs.

Adding to the scenario, a mere 1.4 % of the Indian GDP being spent on healthcare (2014) as opposed to 3.1% in China and 8.3% in the US, a serious opportunity and scope exist for health care entrepreneurs to delve in and build up a healthy market.

At the bottom of the country’s economic pyramid lie more than a billion people who are underserved medically and the Nuovo health entrepreneurs in India are aiming to sell their medical services directly to this stratum. In India, 80% of the healthcare spending is credited to paying customers which include individual patients and their families. The insurance companies and the government hold a measly 20% of the whole expenses. The health care expenditure in India is expected to reach $158 billion in the year 2017 exhibiting an annual growth rate of 15%.

To cater to the majority of Indian households that have a combined annual income of INR 2,00,000 and those that reside in smaller cities and towns, the health care start-ups are working to bring the costs down for eye care, dental care, preventive screenings, and other basic procedures.

Entrepreneurship is extremely important for the Indian healthcare sector. It is through responsible and innovative entrepreneurship that better ways of doing the same things emerge. It is through these innovative approaches that novel health care delivery models were created; remote healthcare was delivered through harnessing technological prowess and impressive innovations in services surfaced in the healthcare sector.


The entrepreneurial activity initially was centred on diagnostics and pathology labs, however, recently quite a few other segments in the healthcare sector are catching up. With the emergence of diabetes management clinics, primary healthcare centres, availability of specialists’ information & access online, consulting services for the remote areas, apps that offer appointment booking services, the whole dynamics of the healthcare sector in India has gone through a paradigm shift. Some of the examples of glory are as under:

i) ImpactRun – a philanthropy app focuses on fitness, where the runs or walks of the user are converted into donations for grassroots non-profit organisations.

ii) Blood Sure – started in October 2015, they have organised 35+ camps and have accumulated 4,000 pints of blood from 75,000+ voluntary blood donors.

iii) Urgency – based out of Mumbai, MUrgency is a healthcare mobile app to connect people in need of emergency response with qualified medical, safety, rescue and assistance professionals with a tap on the phone.

The key factors that are to be kept in mind in the current scenario of the healthcare sector are as under –

i) The optimal use of technology in creating a sustainable business & delivery model
ii) Constant & consistent innovations to add value to the service or product delivery to the recipient
iii) An ownership model that would allow the business to grow through a high-quality service delivery, which is possible only through a suitable & committed set of people

Technology is playing a major role in the emerging entrepreneurship in recent years especially with the smartphones becoming universally available. The healthcare market is predicted to grow from $100 billion in 2016 to $280 billion in 2020. This exponential growth is supported by broader and deeper penetration of broadband internet and smartphones. With an increasingly high number of Indians gaining access to digital media, digital technology is going to be the next big thing in the health care sector too.

The emerging entrepreneurship in the Indian healthcare sector is dedicatedly working to come up with apt models that would ensure quality delivery of service. Technology may be a great enabler but the challenge lies in finding the right human resources that can make or break your nascent organization.


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