The Healthcare and lifesciences market is one of India’s largest sector, in terms of revenue and employment. India’s competitive advantage stems from the number of trained medical professionals coupled with competitive pricing. This has enabled the Indian Healthcare & Lifesciences sector to become the second fastest-growing market in the world.

The Indian Healthcare & Lifesciences market size is estimated at US$ 194 billion in 2021 and is expected to reach a market size of US$ 341 billion by 2025 (CAGR: ~15%). The sector has attracted ~US$ 26 billion private capital over the last 11 years (2010-21).

We expect five macro themes to dominate the Indian healthcare and life science sectors over the next decade:
Dual Disease Burden set to remain Prominent
Rise in insurance can tilt the 'Out of pocket' healthcare Payor model
Government and Private Spend on Healthcare set for a permanent rise
More effort towards bridging the large rural-urban healthcare gap
Acceleration in Digital Healthcare

These core themes cut across the various segments of the healthcare and lifescience sectors which will play a key role in shaping the direction of the sector's investment needs even in a post-COVID era.

Due to these reasons, we at TCHF believe that the Indian healthcare and lifesciences sector presents a compelling opportunity for private equity investment, which could potentially generate attractive returns for investors.