We bid goodbye to 2016 with the comfort that where India has been ranked number one on the Digital Transformation Business Impact Scorecard, a global ranking of countries and industries across 14 key performance indicators critical for digital transformation success, the healthcare industry is not far behind.
2016 is the year when India laid the foundation for digital disruption in healthcare through its economic strength, changing consumer behavior, and international investment.
It currently has the second (China ranks first) largest CAGR in healthcare among all BRIC countries. Healthcare is one of the fastest-growing industries and is expected to expand at a CAGR of 18.3 percent over the next five years, to reach USD 280 billion.
Digital technology has already been integrated in areas as education and training of doctors and health information systems. Others as m-health, remote diagnostics, telemedicine, digital, and social connectivity and wearables have a relatively concrete foundation in India. Big data analytics, smart cities, and electronic medical records are beginning to be adopted by healthcare providers.
International companies are setting up bases in India as well as investing in and co-investing with Indian companies. FDI in healthcare continues to rise. From June 2012 to June 2015, there was a 51 percent increase to USD 17.5 billion, with increasing investments from medical tourism, poised at a CAGR of 30 percent. The healthcare and life sciences sector saw a 54 percent jump to USD 166 million in private equity investments between Q4 2014 and Q4 2015 alone.
On the international front, Donald Trump's election as US president was greeted with optimism by the biopharma industry. Among his pro-business proposals is a plan to allow companies to repatriate overseas cash at a lower tax rate, which has spurred speculation that the funds could be used for mergers and acquisitions. Analysts believe the tax break – which would see companies pay 10 percent tax on repatriated funds rather than the current 35 percent rate – will increase the odds of consolidation in healthcare.
An interesting year gone by indeed!