A report by the Economic and Social Research Council has suggested that in 2037, India’s healthcare sector will have to grow more quickly than the rest of the world, but the country’s GDP will remain stable.
According to the report, healthcare is expected to grow at a compound annual growth rate of 5.9% by 2037 from $6.3 trillion to $7.4 trillion, the biggest annual growth in healthcare in the world.
“This is the first time that the growth rate in healthcare will be greater than the growth in the economy as a whole,” said Rajiv Kumar, the chairperson of the Council of Economic Advisers.
“In our view, healthcare growth will not be more than the overall GDP growth of the country.”
The report, released on Monday, said the healthcare sector would need to grow by 6.2% to 6.4% per annum to be able to sustain the growth of 5% to 5.5% of GDP in 2020-21.
However, the report warned that the average annual growth of healthcare in 2023 will be 3.5%.
While the growth rates for the economy and the healthcare system will likely be in the same ballpark, the growth for the healthcare services sector will be faster, with the average growth rate for the sector rising to 6% in 2031.
The report noted that the healthcare industry, the third-largest sector, will also grow faster than the industry as a percentage of GDP.
The healthcare sector is expected, however, to grow less than the economy overall in 2034, with a growth rate that is less than half the GDP growth rate.
According the report’s projections, the healthcare sectors growth rate will remain constant between 2021 and 2026, at 5.7% to 7.1%.
However, the average rate of growth will be 6.3%.
India is a leader in healthcare, with over 100,000 healthcare facilities, and more than 5,500,000 patients.