GLOBAL BUSINESS PROJECT

Economic and
Industry Analysis
of Hospitals in India
Snehith Bandaru-20FMUCHH010549

Surolla Goutham-20FMUCHH010574

Ankit mehta-20FMUCHH010046

Mohammed Sohail-20FMUCHH010693
 ECONOMIC ANALYSIS

EXECUTIVE SUMMARY:

The main objective of this report is to conduct a thorough economic and industry analysis for
the hospital industry in the country to understand the factors to be considered while
conducting complete research on an existing company or to establish a new start-up.

We did a thorough research on the hospital industry in India, to understand the economic
condition of the country. India's diverse economy encompasses traditional village farming,
modern agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly less than half of the workforce is in agriculture, but services are the major
source of economic growth, accounting for nearly two-thirds of India's output but employing
less than one-third of its labour force.

India is primarily a domestic demand-driven economy, with consumption and investments

contributing 70% to the country’s economic activity. With the economic scenario improving
on recovering from the COVID-19 pandemic shock, several investments and developments
have been made across various sectors of the economy. According to World Bank, India must
continue to prioritise lowering inequality while also launching growth-oriented policies to
boost the economy. 

 As of July 15, 2022, India’s foreign exchange reserves reached US$ 572.71 billion.
 Private equity-venture capital (PE-VC) sector investments stood at US$ 34.1 billion,
up 28% YoY, across 711 deals through January-June 2022.
 India’s merchandise exports stood at US$ 676.2 billion in FY22. In June 2022, India’s
merchandise exports stood at US$ 37.9 billion, recording the highest ever exports in
June 2022.
 PMI Services was at 58.9 in May 2022 compared to 57.9 in April 2022.
 In June 2022, the gross Goods and Services Tax (GST) revenue collection stood at Rs.
1.44 trillion (US$ 18.1 billion).
 According to the Department for Promotion of Industry and Internal Trade (DPIIT),
FDI equity inflow in India stood at US$ 588.53 billion between April 2000-March
2022.
 In May 2022, the Index of Industrial Production (IIP) stood at 137.7 driven by
mining, manufacturing and electricity sectors.
 Consumer Price Index (CPI) inflation stood at 7.01% in June 2022 compared to
7.04% in May 2022.
 In July 2022 (until 21 July 2022), Foreign Portfolio Investment (FPI) outflows stood
at Rs. 228,862 crore (US$ 28.65 billion)
  Wheat procurement in Rabi 2021-22 and anticipated paddy purchase in Kharif 2021-
22 would include 1208 lakh (120.8 million) metric tonnes of wheat and paddy from
163 lakh (16.7 million) farmers, as well as a direct payment of MSP value of Rs. 2.37
lakh crore (US$ 31.74 billion) to their accounts.

INTRODUCTION TO THE INDIAN ECONOMY:

1. India is a developing country, and our economy is a mixed economy where the public
sector co-exists with the private sector.
2. India is likely to be the third largest economy with a GDP size of $15 trillion by 2030.
INDIA has overtaken the UK to become the world’s Fifth largest and is now behind only
the US, China, Japan and Germany, according to IMF projections.
3. The World Bank downgraded India’s GDP forecast for the current fiscal year to 6.5
percent. However, in June 2022, it had projected that the Indian economy would grow at a
rate of 7.5 percent.

INDICATORS OF ECONOMIC GROWTH

Gross Domestic Product

 Nominal Gross Domestic Product of India is $3.535 trillion (nominal; 2022 est.)
$11.745 trillion (PPP;2022)
 In 2nd quarter 2022, real GDP for India was 752,015 million US dollars. Real GDP of
India increased from 205,432 million US dollars in 3 rd quarter 2002 to 752,015
million US dollars in 2nd quarter 2022 growing at an annual rate of 1.73%.
 The GDP has shrunk 6.6% in 2021-21.
 GROSS NATIONAL PRODUCT
 In financial year 2022, the gross national income at current prices in India was
estimated to amount over 230 trillion Indian rupees, a significant increase from the
previous year.
 India GNP for 2021 was $3,027.51B, a 14.62% increase from 2020. India GNP for
2020 was $2,641.49B, a 8.11% decline from 2019. India GNP for 2019 was
$2,874.65B, a 4,95 % increase from 2018.

INFLATION
The Consumer Price Index for Republic of India is 174.3 for the month of August 2022. The
inflation rate year over year is 7.0% (compared to 6.7% for the previous month). Inflation
from July 22022 to August 2022 was 0.5%.

MONEY SUPPLY.
Money supply M3 in India averaged 26603.03INR Billion from 1951 until 2022,
reaching an all time high of 211284.84 INR Billion in September of 2022 and a record
low of 20.57 INR Billion in October of 1952.
UNEMPLOYEMENT.
India's unemployment rate fell to 6.43% in September 2022, its lowest level since August
2018 and after touching a one-year high of 8.3% in August 2022, the latest data shared by the
private think tank Centre for Monitoring Indian Economy (CMIE) shows. The jobless rate
fell in both urban and rural parts of the country, thanks to the addition of new jobs during
September 2022. In urban areas, the unemployment rate fell to 7.7% from 9.57%, while it
dropped to 5.84% from 7.68% in rural areas of the country.

CAPITAL FORMATION
Gross Fixed Capital Formation in India averaged 6652.27 INR Billion from 2001 until 2022,
reaching an all time high of 13710.90 INR Billion in the first quarter of 2022 and a record
low of 2021.90 INR Billion in the quarter of 2002.
DOMESTIC SAVINGS.

The savings of Indian households fell to the lowest level in last five years in the year ending
March 31, 2022. As the inflation eroded the purchasing power, people dug into
their savings to spend after the pandemic, a report by Mint stated.
Compared with 15.9 per cent in FY21, the gross financial savings of households stood at 10.8
per cent in FY22. In the three previous fiscal years, it was 12 per cent.

Happiness Index

• India was ranked 136 out of 146 countries in the United Nations’ World
Happiness Report, 2022.

• The World Happiness Report 2022 has been topped by Finland, for the fifth
consecutive year.

• The Following Finland, Denmark bagged the second rank, while Iceland and
Switzerland stood at third and fourth rank. The Netherlands was at the fifth rank in
the list

Hofstede cultural index

Individualism-Collectivism

India, with a rather intermediate score of 48, is a society with both collectivistic and
Individualist traits.

Power distance
India scores high on this dimension, 77, indicating an appreciation for hierarchy and a top-
down structure in society and organizations.

Masculinity-femininity

India scores 56 on this dimension and is thus considered a Masculine society. India is actually
very Masculine in terms of visual display of success and power.

Uncertainty avoidance

India scores 40 on this dimension and thus has a medium low preference for avoiding
uncertainty. In India, there is acceptance of imperfection; nothing has to be perfect nor has to
go exactly as planned.

Long term orientation

With an intermediate score of 51 in this dimension, a dominant preference in Indian culture

cannot be determined.

Cross country analysis

Gross Domestic Product

India 3.535 trillion

China 16700.00 USD Billion
Russia 1.82 trillion
Brazil 1.8 trillion
Belgium 24.85 trillion
France 3.4 trillion

Per capital income

India 1900.71 USD
China 11800.00 USD
Russia 9500.00 USD
Brazil 11200.09 USD
Belgium 7200.00USD
France 43519 USD

Gross National Product

India 64.95 lakh crore

China 19.91 trillion
Russia 29,110 USD
Brazil 391.548 USD
Belgium 101.947 USD
France 2820.00 USD

Inflation

India 5.1%
China 2.3%
Russia 13.4%
Brazil 8.73%
Belgium 6.6%
France 1.6%

Happiness Index Score

India 3.77
China 5.339
Russia 5.477
Brazil 6.33
Belgium 4.96
France 6.69

Government Policies

Monetary Policy:

 RBI overflows repo rate by 50 bps to 5.4%; 10-year-old bond yields up by 10 bps to
7.25%.
 Repo rate or key short-term lending rate increased by 50 basis points (bps) to 5.4 per
cent for the third consecutive time in 2022.
 140 bps hike in repo rate since May 2022 to control inflation.
 Real GDP growth forecast: q1 at 16.2 per cent; q2 at 6.2 per cent; q3 at 4.1 per cent
and q4 at 4 per cent.
 GDP growth forecast for 2022-23 retained at 7.2 per cent.
 Real GDP growth for q1: 2023-24 projected at 6.7 per cent.
 Retail inflation forecast too retained at 6.7-per cent for 2022-23.
 Inflation forecast for: q2 at 7.1 per cent; q3 at 6.4 per cent, q4 at 5.8 per cent;
q1:2023-24 at 5 per cent.
 Domestic economic activity to expand
 MPC(Monetary policy committee) decided to stay focused on withdrawal of
accommodative stance to observe inflation

Fiscal policy

 In 2021-22, the deficit is expected to be 6.9 percent of the GDP, with reduced current
expenditure and increased capital expenditure. The new budget fix the deficit in 2022-
23 at 6.4 percent of GDP, again with a reduction in current expenditure but a large
increase in capital expenditure.

 Interest payments were 42 percent of revenue receipts in 2020-21 and 39 percent in

2021-22; they are budgeted to jump to 43 percent in 2022-23.

 In pre-pandemic years, they hovered at about 36 percent

Foreign Trade Policy

Between April to August 2022, India's merchandise exports stood at $192.59 billion up by
17.12% from $164.44 billion in the same period a year ago. Imports continue to rise more
than exports. In the first five months of FY23, merchandise imports grew by 45.64% to
$317.81 billion from $218.22 billion in the corresponding period last year. The trade
deficit widened by more than 2-folds to $125.22 billion (April - August 2022) compared to
$53.78 billion in the same period last year. Earlier, Commerce Minister Piyush Goyal
held a meeting that focused on export target setting, the new Foreign Trade Policy (FTP)
(2022-27), and the strategies and measures to take forward domestic manufacturing and
exports.

Growth prospects

 Real GDP is projected to grow by 6.9% in fiscal year (FY) 2022-23 and 6.2% in

FY 2023-24, despite a pick-up of corporate investment facilitated by the Production-
Linked Incentive Scheme. While inflation will gradually decline, the current account
deficit will widen due to the surge in energy import costs.
 The UN World Population Prospects 2022 projects India to have the largest,
population by 2023. As per OECD’s baseline projections, India would overtake the
US to become the second largest economy in terms of size of GDP in purchasing
power parity (PPP) terms by the late 2040s.
 India needs to increase its rate of employment growth and create 90 million non-farm
jobs between 2023 and 2030's, for productivity and economic growth according to
McKinsey Global Institute. Net employment rate needs to grow by 1.5% per year
from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030.

 According to data from the RBI, as of the week ended on June 04, 2021, the foreign
exchange reserves in India increased by US$ 6.842 billion to reach US$ 605 billion.

 Accordingly, India’s per capita GDP which is almost 50% of the world per capita
GDP in PPP terms(purchasing power parities) currently (FY22 and FY23) would
catch up to the world level by the early 2040s.

Future trends
 India is 2nd fastest growing major economy after China, it is projected that by 2050,
India’s economy will be the world’s second largest, behind only to China

 India is focusing on renewable sources to generate energy. It is planning to achieve 40%

of its energy from non-fossil sources by 2030, which is currently 30% and have plans to
increase its renewable energy capacity from to 175 GW by 2022.

 In line with this, in May 2021, India, along with the UK, jointly launched a ‘Roadmap
2030’ to collaborate and combat climate change by 2030.

 India is expected to be the third largest consumer economy as its consumption may triple
to US$ 4 trillion by 2025, owing to shift in consumer behaviour and expenditure pattern,
according to a Boston Consulting Group report.

 As of July 11, 2022, the South-West monsoon has covered the entire country, resulting in
7% higher rainfall than the normal level.
 The Indian economy has fully recovered to the pre-pandemic real GDP level of 2019-20,
according to the provisional estimates of GDP released on May 31, 2022. Real GDP
growth in FY 2021-22 stands at 8.7%, which is 1.5% higher than the real gap in FY 2019-
20.
 India has emerged as the fastest-growing major economy in the world, and is expected to
be one of the top three economic powers globally over the next 10-15 years, backed by its
robust democracy and strong partnerships

PORTER’S DIAMOND OF NATONAL ADVANTAGE.

1.Factor Conditions:

In the last two decades, the depressing vision of India’s population as an ‘overwhelming
burden’ has been turned on its head. India now views its population of 1.2 billion as a vast
source of Human capital. India is a leading producer of many mineral resources and has a
vast reserve of coal. Its lack of oil and natural gas supplies has put a lot of dependency on
imports. India has all the ingredients of a knowledge-based economy by virtue of English
language and human resources. India is suffering a huge setback because of its poor
infrastructure which needs a lot of attention going forward, to attract investments.

2.Demand conditions:

The more demanding the customers in economy, the greater the pressure facing nation to
constantly upgrade its competitiveness via innovation and improving its quality. India
attracted over 250 multinationals to set research centres. The economy is the world’s 12th-
largest. As the educated middle class continues to rise and becomes more and more powerful,
the country would demand more and more, and their consumptions Economic Analysis 13
will increase. Going forward, the demand conditions are going to rise which may lead to
better quality of education for the masses, better governance, less corruption, and greater
equality. This will only increase the GDP and leads to improvements in its innovation and
services.
3.Related and supporting industries:

Services form the largest part of Indian GDP. One of the biggest advantages that India has is
its IT industry. It is a world leading provider of IT services and employs a vast majority of
people. According to a Goldman Sachs report, India has the potential to show the fastest
growth over the next 30 – 50 years. India clearly has low-cost high-quality labour compared
to any other country in the world and it will have a young workforce till 2050. But still it
hasn’t made any progress in the field of manufacturing. Although it is the world’s cheapest
producer of high-quality steel, policy paralysis and corruption has halted the India from
becoming the world’s leading manufacturer.

4.Firm Strategy, structure and rivalry:

Indian IT industry has been the toast mainly because of its low-cost innovation. The
pharmaceutical industry in India is seen in a very positive light as India is the leading
producer of generic drugs. Thus, the firm strategy in India has remained low-cost high-
quality production. India has moved on from being a socialist country towards a capitalist
economy. There is an open market economics for most of the goods and services produced
here. Thus, this healthy rivalry among the peers in their industry have made the firms to be
more innovative and effective in their offerings.

5. Government:

Post the 1991 reforms, Indian economy shaped up well and government have created many
policies to better its competitive advantages. Right to education, RTI, employment guarantee
act has served to the benefit of the masses. With food security bill, Identification cards and
Direct benefit transfer programs shaping up, the government involvement looks promising.
The only downside is the corruption and implementation incompetence.

6. Chances:

With a deeply rooted democracy, demographic dividend, self-sufficiency in many resources

and an ambition to become a superpower, India’s chances are better than any time in its
history.

Conclusion

As a young country the potential in India is unimaginable. Thus, it is important to utilize it to

the maximum capacity. India in the recent years has been one of the best performers in the
whole world, but the recent covid outbreak and the poor implication of the government
policies has led to a substantial reduction in the speed of the victory lap. From the above
report it can easily be concluded that the Indian economy is in doldrums, mainly because of
the covid induced lockdowns and the poor implication of the government policies. The trade
deficits and NPAs are going through the roof. The unemployment rates are at an all-time
high. For the country to be performing well the government needs to introduce a robust
framework which will fill in all the gaps caused the recent outbreaks. Most institutional and
private forecasts expect the Indian economy to contract at a double-digit rate in the current
fiscal year. This, even though the economy has been showing a sequential (month on month)
improvement compared to the situation when it was locked down. However, some high
frequency economic indicators suggest that not only is the economy showing sequential
improvement, but it might also actually have surpassed last year’s levels, albeit in some
areas.
 INDUSTRY ANALYSIS
(HOSPITALS IN INDIA)

EXECUTIVE SUMMARY

India's healthcare industry has grown significantly in both employment and income. The
expansion of coverage, services, and rising spending by both public and private entities are
all contributing to the rapid growth of the Indian healthcare industry. The abundance of
highly qualified medical personnel in India is a competitive advantage. Comparing India to
its counterparts in Asia and Western nations, it is also cost-competitive. Surgery in India
costs roughly a tenth of what it does in the US or Western Europe.

The Indian healthcare sector is expected to record a three-fold rise, growing at a CAGR of
22% between 2016–22 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016. By
FY22, Indian healthcare infrastructure is expected to reach US$ 349.1 billion. The e-health
market size is estimated to reach US$ 10.6 billion by 2025.

The Indian medical tourism market was valued at US$ 2.89 billion in 2020 and is expected to
reach US$ 13.42 billion by 2026. According to India Tourism Statistics at a Glance 2020
report, close to 697,300 foreign tourists came for medical treatment in India in FY19. India
has been ranked 10th in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations
by the Medical Tourism Association.

Healthcare has become one of India’s largest sectors, both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. The Indian
healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and
increasing expenditure by public as well private players.

India’s healthcare delivery system is categorised into two major components - public and
private. The government, i.e., public healthcare system, comprises limited secondary and
tertiary care institutions in key cities and focuses on providing basic healthcare facilities in
the form of primary healthcare centres (PHCs) in rural areas. The private sector provides
majority of secondary, tertiary, and quaternary care institutions with major concentration in
metros, tier-I and tier-II cities.
 INTRODUCTION
Healthcare has become one of India’s largest sectors, both in terms of revenue and
employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing,
telemedicine, medical tourism, health insurance and medical equipment. India’s healthcare
delivery system is categorised into two major components - public and private. The
government, i.e., public healthcare system, comprises limited secondary and tertiary care
institutions in key cities and focuses on providing basic healthcare facilities in the form of
primary healthcare centres (PHCs) in rural areas. The private sector provides majority of
secondary, tertiary, and quaternary care institutions with major concentration in metros, tier-I
and tier-II cities.

INDUSTRY LIFE CYCLE-

The evolution of healthcare in India over the past 30 years has been full of highs and lows.
Healthcare is an important aspect of a country. And the slogan “health is wealth” defines it.

There were no high-standard private hospitals during this decade. Therefore, people only
relied on government hospitals for treatment. Around 43% of Indians used public hospitals
during the 1990s-2000s, which is a big number considering the population. Furthermore,
there was no other option for them. Even though there were some good private hospitals,
unfortunately, the treatment was pretty expensive. Taking a city wise scenario into account,
the case in rural India was inferior.

Coming to a new decade, Indians made exponential growth in the healthcare sector. In these
10 years, the country witnessed immense growth. However, was not enough to say that
Indian Healthcare is growing on a global scale.

The Swachh Bharat Abhiyan has pushed the country in the right direction to reduce the
spread of communicable diseases. The Indian government also launched Mission Indra
Dhanush in 2014 which strengthened immunization coverage in India to all children who are
not vaccinated. Earlier, in the 1990s and 2000s, no government has taken such steps. When
the government was present with slammed healthcare facilities in India, the team
conceptualized Mission Indra Dhanush which was launched in 2014 and will achieve the
target of full coverage by 2020.

As of 2018, there a total of 4,900 start-ups in the Indian health-tech space. Overall, the
health-tech start-ups in India have raised a total of $500 million between 2014-2018.”
The digital healthcare market in India was valued at INR 116.61 Bn in 2018 and is estimated
to reach INR 485.43 Bn by 2024, expanding at a compound annual growth rate (CAGR) of
~27.41% during the 2019-2024 period.

INDUSTRY SPECIFIC GOVERNMENT POLICIES-

The health policy commits itself to the highest professional standards, integrity, and ethics to
be maintained in the entire system of health care 2 delivery in the country, supported by a
credible, transparent, and responsible regulatory environment.

Strengthening the trust of the common man in public health care system by making it
predictable, efficient, patient centric, affordable, and effective, with a comprehensive package
of services and products that meet immediate health care needs of most people.

Some major initiatives undertaken by the Govt which aim at providing accessible, cost-
friendly and quality healthcare services to most of the citizens along with providing a holistic
view of the health system in the country are:

1. Pradhan Mantri Jan Arogya Yojana (PMJAY) was launched in September 2018,
aiming to provide health insurance worth Rs 500,000 (US$ 7,124.54) to over 100
million families every year, and is already implemented in several states.
2.  In August 2018, the Government of India approved Ayushman Bharat-National
Health Protection Mission as a centrally Sponsored Scheme contributed by both
center and state govt. It aims at covering over 10 crore poor and vulnerable families
(approximately 50 crore beneficiaries) providing coverage up to 5 lakh rupees per
family per year for secondary and tertiary care hospitalization. Under the Ayushman
Bharat program, nearly 1.5 lakh primary health centers will be transformed as health
and wellness centers by 2022. These canters will be equipped to provide treatment
and care for several diseases such as high blood pressure, diabetes, cancer, and old
age-related illnesses.
3. Another important mission undertaken in full throttle is Mission Indra Dhanush
(launched in December 2014) which aims to achieve at least 90% full immunization
coverage of India and sustain the same by the year 2020. The goal here is to ensure
full immunization with all available vaccines for children up to two years of age and
pregnant women in both rural and urban areas.

Ministry of Health and Family Affairs has been given a push in money allocation in
the last five budgets that have been presented by the Modi govt. With Rs 63,298.12
 crore allocated to the health sector this year, the government once again hiked India's
health spending. This year’s allocations are a rise of 15.9% percent over last year’s
budget, which showed a rise of about 13% over what was allotted for this sector in the
year before that.

KEY DRIVERS-

Health is a critical input into the well-being of an individual and Universal Health System
(UHS) is a buzzword in the healthcare industry. Various government across the world are
trying to implement UHS in their respective countries. The Government of India launched a
universal health system (UHS) program named Ayushman Bharat on September 23, 2018.
The scheme is targeted at poor, deprived rural families and identified occupational category
of urban workers' families and offering 0.5 million health expenditure coverage per family
per year to the eligible patients under this scheme.
The present study focuses on insights on key drivers that would make the patients adopt this
service at UHS empaneled hospitals. The factor analysis (EFA and CFA) of patient responses
from primary survey in Central India hospitals showed that the satisfaction with the hospital,
administrative efficiency, service consistency, patient convenience and program awareness
were key drivers for adoption of UHS services. The prioritization of these factors and sub-
factors by hospital administrator and regulators would help in getting maximum footfall of
UHS patients in the hospitals.

INDUSTRY METRICS-
 As of 2021, the Indian healthcare sector is one of India’s largest employers as it
employs a total of 4.7 million people. The sector has generated 2.7 million additional
jobs in India between 2017-22 -- over 500,000 new jobs per year.
 The Indian healthcare sector, which stood at a size of USD 110 billion in 2016, is
expected to reach a size of over USD 372 billion by 2022, registering a CAGR of
22%. The hospital industry in India stood at USD 61.79 billion in 2017 and is
expected to increase at a 16-17% CAGR to reach a size of USD 132.84 billion by
2023.
 In Indian healthcare industry Private sector players occupy a major share of nearly
80% of the country’s total healthcare market. They also account for almost 74% of
the country’s total healthcare expenditure. Their share in hospitals alone is
estimated at 74% while the share of hospital beds is estimated at 40%.
 India's healthcare industry has grown significantly in both employment and income.
The expansion of coverage, services, and rising spending by both public and private
entities are all contributing to the rapid growth of the Indian healthcare industry. The
abundance of highly qualified medical personnel in India is a competitive advantage.
Comparing India to its counterparts in Asia and Western nations, it is also cost-
competitive. Surgery in India costs roughly a tenth of what it does in the US or
Western Europe.
TECHNOLOGICAL INNOVATION

Hospitals have always been a place of innovation. From the first medical breakthroughs to
new technologies, hospitals are constantly changing and adapting to meet today’s needs. As a
result, doctors need better tools, more efficient systems, and faster access to information to
provide quality care for their patients.

Hospitals are using artificial intelligence to automate various tasks, such as triaging incoming
patient charts based on severity. In some cases, AI is even being used to decide what course
of treatment will be best for the patient in question.

The Indian government’s ‘Make in India’ initiative is encouraging domestic manufacture of

medical devices and helping lower the prices patients pay for products such as stents and
implants, which in the past were imported. At the same time, in India the policy environment
and regulators need to accommodate technological interventions such as the growth of online
pharmacies with the requisite controls in place, according to the panellists. Health care
innovation in India could serve as a global model for a shift from treating the sick to
preventive care and wellness, given the size of its underserved populations, they said.

Artificial intelligence will also bring new efficiencies in hospital operations providing data
insights that lead to cost savings from reduced wait times. This step will be through better
planning capabilities, fewer bed shortages through enhanced inventory management, and
lower overhead costs due to decreased staffing needs, among other benefits. 

Supply chain management of Hospitals in India

When we look at the healthcare industry, we see that it is both critical and costly. Many
hospitals' top priority has been to reduce healthcare costs, which is why they have begun to
investigate healthcare logistics services.

The healthcare supply chain is concerned with the process of obtaining the resources required
to provide healthcare goods or services to a consumer. The process of acquiring medical
resources, managing the supplies, and ensuring that the required quantities are delivered on
time is referred to as the healthcare supply chain.

The medical sector as a whole serves a large number of people, which necessitates adequate
supplies of everything from syringes, medicines, personal protective equipment (PPE), and
other prescription-based drugs.

Procurement of Raw Materials

The raw materials which hospitals are required can be Pharmaceutical’s, Equipment, Oxygen
plants and surgical since it’s a largely service-based Industry the requirement of qualified
personal can be a big cause of concern.

TIME LED AND LAG

Procurement and quality checking can be a time-consuming process and certain things are
required to be done manually rather than through machinery so it can delay the whole process
a bit.

PEST analysis of Hospitals in India

Political

Organizations are influenced by government policies.

Economic

Organizations must operate in conditions of boom and bust.

Social

Organization’s culture has a direct influence by culture of the society that

operates. Lifestyle changes due to increase income have resulted in consumer needs.

Technology

The level and focus on technology affect the organization. Development of

Introduction of robots assisted completed surgery

GOVERNMENT INITIATIVES

Some of the major initiatives taken by the Government of India to promote the Indian
healthcare industry are as follows:

 In the Union Budget 2022-23:

 Rs. 86,200.65 crore (US$ 11.28 billion) was allocated to the Ministry of Health and
Family Welfare (MOHFW).

 Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 10,000 crore
(US$ 1.31 billion)

 Human Resources for Health and Medical Education was allotted Rs. 7,500 crore
(US$ 982.91 million).

 National Health Mission was allotted Rs. 37,000 crore (US$ 4.84 billion).

 Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted
Rs. 6,412 crore (US$ 840.32 million).

 The Government of India approved continuation of ‘National Health Mission’ with a

budget of Rs. 37,000 crore (US$ 4.85 billion).

 Rs. 5,156 crore (US$ 675.72 million) was allocated to the newly announced PM-
ABHIM to strengthen India’s health infrastructure and improve the country’s primary,
secondary and tertiary care services.

 In July 2022, the World Bank approved a US$ 1 billion loan towards India's Pradhan
Mantri-Ayushman Bharat Health Infrastructure Mission.

 In May 2022, the Union Government approved grants for five new medical colleges
in Gujarat with a grant of Rs. 190 crore (US$ 23.78 million) each. These colleges will
come up in Navsari, Porbandar, Rajpipla, Godhra and Morbi.

 In November 2021, the Government of India, the Government of Meghalaya and the
World Bank signed a US$ 40-million health project for the state of Meghalaya.
Project will improve the quality of health services and strengthen the state’s capacity
to handle future health emergencies, including the COVID-19 pandemic.

 In September 2021, Prime Minister Mr. Narendra Modi launched the Ayushman
Bharat Digital Mission. The mission will connect the digital health solutions of
hospitals across the country with each other. Under this, every citizen will now get a
digital health ID and their health record will be digitally protected.

 In September 2021, the Telangana government, in a joint initiative with World

Economic Forum, NITI Aayog and HealthNet Global (Apollo Hospitals), launched
‘Medicine from the Sky’ project. The project will pave the way for drone delivery of
life saving medicines and jabs in far-flung regions of the country.

 According to a spokesperson, the Indian government is planning to introduce a credit

incentive program worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s
healthcare infrastructure. The programme will allow firms to leverage the fund to
expand hospital capacity or medical supplies with the government acting as a
guarantor and strengthen COVID-19-related health infrastructure in smaller towns.
  In July 2021, the Ministry of Tourism established the ‘National Medical & Wellness
Tourism Board’ to promote the medical and wellness tourism in India.

 In July 2021, the Union Cabinet approved continuation of the National Ayush
Mission, responsible for the development of traditional medicines in India, as a
centrally sponsored scheme until 2026.

 In July 2021, the Union Cabinet approved the MoU between India and Denmark on
cooperation in health and medicine. The agreement will focus on joint initiatives and
technology development in the health sector, with the aim of improving public health
status of the population of both countries.

 In June 2021, the Ministry of Health and Family Welfare, in partnership with
UNICEF, held a capacity building workshop for media professionals and health
correspondents in Northeastern states on the current COVID-19 situation in India, to
bust myths regarding COVID-19 vaccines & vaccination and reinforce the importance
of COVID-19 Appropriate Behavior (CAB).

INVESTMENTS/ DEVELOPMENTS

Between April 2000-March 2022, FDI inflows for drugs and pharmaceuticals sector stood at
US$ 19.41 billion, according to the data released by Department for Promotion of Industry
and Internal Trade (DPIIT). FDI inflows in sectors such as hospitals and diagnostic centers
and medical and surgical appliances stood at US$ 7.93 billion and US$ 2.41 billion,
respectively. Some of the recent developments in the Indian healthcare industry are as
follows:

 As of August 23, 2022, more than 210.31 crore COVID-19 vaccine doses have been
administered across the country.

 As of August 8, 2022, India has exported 24.24 crore vaccine doses.

 In August 2022, Edelweiss General Insurance partnered with the Ministry of Health,
Government of India, to help Indians generate their Ayushman Bharat Health Account
(ABHA) number.

 The healthcare and pharmaceutical sector in India had M&A activity worth US$ 4.32
billion in the first half of 2022.

 As of July 2022, the number medical colleges in India stood at 612.

 In July 2022, the Indian Council of Medical Research (ICMR) released standard
treatment guidelines for 51 common illnesses across 11 specialties to assist doctors,
 particularly in rural regions, in diagnosing, treating, or referring patients in time for
improved treatment outcomes.

 In July 2022, the National Pharmaceutical Pricing Authority (NPPA) fixed the retail
prices for 84 drug formulations, including those used for the treatment of diabetes,
headache, and high blood pressure.

 In March 2022, Hyderabad-based pharmaceutical company Biological E applied for

emergency use authorization (EUA) for its Covid-19 vaccine CureVac for the 5–12-
year age group.

 In January 2022, Phase 3 trials commenced of India's first intranasal vaccine against
COVID-19 that is being developed by Bharat Biotech, in conjunction with the
Washington University School of Medicine in St Louis, the US.

 Startup Healthily, with a total user base of 30 million people, is adding half a million
new users every month and crossed US$ 40 million ARR in January 2022.

 The number of policies issued to women in FY21 stood at 93 lakhs, with one out of
every three life insurance policies in FY21 sold to a woman.

 In December 2021, Eka Care became the first COWIN-approved organization in

India, through which users could book their vaccination slot, download their
certificate and even create their Health IDs.

 As of November 18, 2021, 80,136 Ayushman Bharat-Health and Wellness Centres

(AB-HWCs) are operational in India.

 As of November 18, 2021, 638 e-Hospitals are established across India as part of the
central government's ‘Digital India’ initiative.

 In November 2021, Aster DM Healthcare announced that it is planning Rs. 900 crore
(US$ 120.97 million) capital expenditure over the next three years to expand its
presence in India, as it looks at increasing the share of revenue from the country to
40% of the total revenue by 2025.

 In September 2021, Russian-made COVID-19 vaccine, Sputnik Light received

permission for Phase 3 trials in India.

 In September 2021, Biocon Biologics Limited, a subsidiary of Biocon, announced a

strategic alliance with Serum Institute Life Sciences, a subsidiary of Serum Institute
of India (SII). The alliance is expected to strengthen India's position as a global
vaccine and biologics manufacturing powerhouse.
 CONCLUSION

We can herby conclude that hospitals in India has one of the largest networks of hospitals
both Government and Private.

India has world’s highest number of hospitals run by governments and highest number of
medical professionals and practicnors on Government rolls.

Indian Healthcare market is growing rapidly at CAGR of 18 to 20 % PA.

It has the potential to double itself in the coming four years and we can also predict from the
current scenarios that competition in the industry will increase as patients are Turing more
and more prices sensitive this sector is completely recession proof.

The cost for patients for treatments and medicines is increasing day by day and some
necessary action has to be taken in this regard in order to provide relieve to people of the
country.

The situation of the Hospitals in the Government sector is some states is very poor and
Infrastructure is no there in people in order to provide people with basic treatments.