India's healthcare sector poised to grow to $280 billion by 2020: Report

The country's healthcare sector is poised to grow to $280 billion by 2020 while it is expected to be a leader in e-health by 2019, a new report said on Wednesday.

The CII-KPMG 'The Indian services sector: Poised for global ascendancy' report launched at the second edition of Global Exhibition on Services (GES) said that healthcare sector is forecast to reach $160 billion in 2017, accounting for about 4.2% of GDP.

"The Indian healthcare sector is forecast to reach $160 billion in 2017, accounting for about 4.2% of GDP, and is poised to grow to $280 billion by 2020.

"With the launch of 'Digital India' initiative, the government is stepping towards digital empowerment. India is expected to be a leader in IT use in healthcare (e-health) by 2019," it said.

It said Indian telemedicine, though in its nascent stage, is showing robust growth at approximately 20% and is projected to grow from $8 million in 2012 to approximately $19 million by 2017.

The report highlighted that in the year 2014-15, the services sector contributed about 61% to India's GDP, growing strongly at approximately 10% per annum, making India the second fastest growing services economy in the world.

"India's young demographic profile combined with its rising literacy rate, offers it a significant competitive advantage vis- -vis other developing economies," Rajat Wahi, Partner and Head, Consumer Markets, KPMG in India, said.

"Along with the 'Make in India' initiative that is striving to boost the manufacturing sector, the Prime Minister has outlined a vision to represent India as a world-class services hub across sectors. Multiple stakeholders need to work cohesively to help achieve this vision," he said.