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India

Healthcare to India

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(Last updated: 19 Jul 2007)

Trends and opportunities

The market

India has a relatively low healthcare spend per capita and a limited availability of hospitals for medical treatment for the majority of the population.


Although many private companies have set up healthcare facilities in the last two decades, few have grown large enough to support the high costs of medical equipment and technology.


However, India’s much-noted economic growth is rapidly improving living standards and the healthcare industry will be a major beneficiary of the overall increase in incomes. 


Recent major regulatory reforms have improved the growth prospects for health insurance and, as a result, a large section of middle income families will be able to afford healthcare services leading to high demand. There are some large healthcare companies in India, such as Apollo, Fortis and Max India. These companies provide specialised healthcare and have been successful in catering to the growing demand for high quality services in areas such as cardiology, nephrology, and geriatrics.

Opportunities

In the Indian healthcare sector there is potential for growth in the following areas:

  • Medical equipment such as medical electronics, patient monitoring equipment, and diagnostic kits.
  • Services such as health insurance, new hospitals, healthcare exports, education and training.

Additional areas of opportunity for Australian companies include:

  • Joint venture/investment in private hospital projects
  • Setting up diagnostic centres
  • Exporting medical equipment, instruments and hospital supplies
  • Ambulance and paramedic services
  • Patient care management
  • Telemedicine
  • Training and consulting services (nursing training, patient care management)
  • Hospital waste management systems
  • Healthcare service accreditation

Competitive environment

While USA, UK, Italy, Germany and Japan dominate, there are a number of Australian companies actively pursuing the Indian health sector. Australia has an increasing profile; not only through aid work but also through participation in commercial projects.

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Tariffs, regulations and customs

The government has simplified procedures and reduced duties to encourage imports of capital goods and raw materials. Trade liberalisation is expected to continue as part of India’s economic policies.


Tariffs have been reduced gradually in the last few years. Customs tariffs range from zero per cent for life-saving equipment and supplies to 50 per cent for some pharmaceuticals and medical equipment. Government hospitals are allowed to import medical equipment duty free. There are no quotas set on the importation of medical equipment and supplies.


The Indian Government’s policy permits imports of medical laboratory equipment including refurbished instruments, reagents, components, spares and supplies. These are listed under the open general license category of the import regulations and do not require government approvals.

Industry standards

The Ministry of Health and Family Welfare is India’s central authority responsible for India’s healthcare system. Within the ministry, the Department of Health is responsible for medical and public health matters including drugs control and prevention of food adulteration. India’s state governments are responsible for the formulation and implementation of healthcare services in their respective states.


The Bureau of Indian Standards is the principal agency responsible for certification.

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Marketing your products and services

Market entry

The Indian market is very price conscious. Almost 60 per cent of the healthcare expenditure comes from the self-paid category. However, the industry is currently undergoing a dramatic transformation with new segments being defined and created within the broader health sector.


Australian companies need to:

  • Present detailed company and product information for prospective customers
  • Participate in trade shows
  • Be prepared to travel regionally in order to participate in regional seminar/promotional programs
  • Regularly visit India to maintain a competitive edge

Australian companies are advised to make representations to the Department of Health on the policies and regulations that would affect operations in India, while also identifying a number of prospective health-related companies on the ground to ascertain local opportunities. By offering local expertise, local healthcare providers are a key means of penetrating the Indian health industry.


By collaborating with local medical colleges to facilitate student exchange programs, Australian companies promote brand awareness and, in the long-term, reinforce Australia ’s capability as a source of high technology and services.


There is also opportunity to work with bilateral and multilateral aid/lending institutions to increase Australian participation in supply of equipment through global tenders.


The impact of the Internet on the healthcare industry in India has been to strengthen and augment the distribution system. Consumers are increasingly exposed to new products and technological advances. This awareness is leading people to demand the best products and services available. The Internet has also spawned a new ‘online consulting’ industry in India. Many sites facilitate direct interaction among patients, doctors and specialists, including some of the following:

  • Doctoranywhere – a business-to-business (B2B) e-commerce service that offers access to medical super-specialists around the country by medical practitioners all requiring an expert opinion
  • Doctors of India Online – a one-stop site featuring useful information about medicine and information technology
  • India’s Best Doctor – information on the doctors available in India
  • Chennai Doctor – Chennai’s most comprehensive information source for health care providers
  • All Indian Doctors Online – a medical directory of doctors, medical hospitals, clinics, colleges, physicians, allopathic, and homeopathic services
  • Association of Physician of India – a site for getting updates in advances in medicine
  • GynOnline.com – value addition to the services provided to obstetricians and gynaecologists

Distribution channels

Medical equipment/supplies are best channelled through a local agent with service capabilities. These companies deal directly with distributors/hospital dealers and offer a streamlined approach to getting products to the market.


Private hospitals prefer to import through the local representatives of manufacturers/exporters. These local contacts provide the benefit of regular service support. Private hospitals don’t normally issue tenders, but prefer to purchase through direct negotiations.


Australian companies are advised to deal with corporate groups such as Tata, Reliance, Escorts, Piramals, Max, Wockhardt, and Fortis (Ranbaxy). It’s also advisable to use Indian consultancy firms for consultancy assignment.


Key contacts include:

  • The Asian Health Services Ltd
  • BNA Technology Consulting
  • Indian Hospital Corporation (Apollo Group)
  • Hospital Planning and Management Consultants (HOSMAC)
  • Hospital Services Consultancy Corporation

Transport

The Indian railway network consists of 62,809 route-kilometres of rail track spread over entire length and breadth of the country. However, it is more efficient to travel by air as trains are slow by international standards.


Air-India is the country’s international carrier. Air-India, along with a handful of other airlines, provides extensive domestic passenger and cargo air services.


Among the 11 major ports, Mumbai is the largest port handling almost one-fourth of the entire trade transported through Indian ports.


Infrastructure costs including railway freight and port handling charges in India are not considered competitive compared to other major countries. However, this aspect is recognised by the government and all efforts are being made to improve the infrastructure with the help of private sector involvement.

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Links and industry contacts

Healthcare-related resources

Amrita Institute of Medical Sciences and Research Centre (AIMS) – www.aimshospital.org
Apollo Life.com – www.apollolife.com
Apollo Hospital – www.apollohospdelhi.com
Ayurvedic Health Center Online – www.ayurvedic.org
Doctors of India Online – www.medicalsource.com
Dr Reddy’s Laboratories Ltd – www.drreddys.com
Good Health Directory – www.goodhealthdirectory.com
GynOnline.com – www.gynonline.com
Health Library – www.health-library.com
Indian Council of Medical Research (ICMR) – www.icmr.nic.in/health/links.htm
Indian Medlars Centre – www.indmed.nic.in
Ministry of Health and Family Welfare – www.mohfw.nic.in
P D Hinduja National Hospital & Medical Research Centre – www.hindujahospital.com
Pharmabiz.com – www.pharmabiz.com
Sir Ganga Ram Hospital – www.sgrh.com
Vardaan Hospital & Medical Research Centre – www.vardaan.net


World Health Organisation – www.who.org
Regional Office for South-East Asia
Indraprastha Estate, Ring Road
New Delhi 110 002
Tel: (91 11) 331 7804
Fax: (91 11) 331 8607 

Government, business and trade resources for India

Business Information Services Network – www.bisnetIndia.com 
Central Board of Excise and Customs – www.cbec.gov.in
Chambers and Associations – www.tradenic.nic.in/vstradenic/prm3.htm
Government of India Site – www.nic.in
Indiaindustry.com – www.indiaindustry.com
Indiamarkets – www.indiamarkets.com
Ministry of Finance – www.finmin.nic.in
National Centre for Trade Information – www.ncti-india.com
National Informatics Centre (Ministry of Commerce) – www.nic.in/eximpol
Securities Exchange Board of India – www.sebi.gov.in
Trade and Industry Organisation – www.tradenic.nic.in/vstradenic/toii3.htm 


Federation of Indian Chambers of Commerce and Industry – www.ficci.com
Federation House, Tansen Marg
New Delhi 110 001
Tel: (91 11) 373 8760 – 70
Fax: (91 11) 372 1504


Confederation of Indian Industry – www.ciionline.org
23, 26 Institutional Area
Lodi Road, New Delhi 110 003
Tel: (91 11) 462 9994
Fax: (91 11) 463 3168 / 462 6149

Service providers:

Financial

Bombay Stock Exchange – www.bseIndia.com
Export Import Bank of India – www.eximbankindia.com
Industrial Credit and Investment Bank of India – www.icici.com
Industrial Development Bank of India – www.idbi.com
National Stock Exchange – www.nse-India.com
Reserve Bank of India – www.rbi.org.in
State Bank of India – www.sbi.co.in

Legal

Lexsite – www.lexsite.com

Logistics

Air-India – www.airindiacom
Qantas – www.qantas.com.au/freight/dyn/menu

Media

123 India – www.123india.com
Assocham Publications – www.assocham.org
India Infoline.com – www.indiainfoline.com
Indian Express – www.expressindia.com
India Today – www.india-today.com
Khoj – www.khoj.com
Outlook Magazine – www.outlookindia.com
Times of India – www.timesofindia.indiatimes.com

Australian resources

Department of Foreign Affairs and Trade (India fact sheet) – www.dfat.gov.au/geo/fs/inia.pdf 


Indo-Australian Chamber of Commerce
Arjay Apex Centre, 3rd Floor
24, College Road
Ningambakkam
Chennai 600 006
Tel: (91 44) 821 3231
Fax: (91 44) 822 5603


Australian High Commission
1/50G Shantipath
Chanakyapuri
New Delhi 110 021
Tel: (91 11) 2688 8223
Fax: (91 11) 2687 4126 (Consular and Administration)
Fax: (91 11) 2688 5199 (Austrade)

Opening hours: 
8.30am to 5.00pm, Monday to Friday


Australian Consulate General
Maker Tower E, 16th Floor
Cuffe Parade, Colaba
Mumbai 400 005
Tel: (91 22) 2218 1071
Fax: (91 22) 2218 8228 (Austrade/Consular)
Fax: (91 22) 216 2649 (DIMIA)


High Commissioner of India – Australia – www.hcindia-au.org
3-5 Moonah Place
Yarralumla ACT 2600
Tel: (61 2) 6273 3999, 6273 3774 or 6273 3875
Fax: (61 2) 6273 1308


Consulate-General of India, Sydney – www.indianconsulatesydney.org
Level 27, 25 Bligh Street
Sydney NSW 2000
Tel: (61 2) 9223 9500
Fax: (61 2) 9223 9246

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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