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India Healthcare Faces Cost Squeeze Despite Growth
31 Mar
Summary
- Rising capital and operating costs pressure Indian healthcare sector.
- Strong demand and medical tourism support continued sector growth.
- Innovation in low-cost healthcare delivery remains a key advantage.
Suneeta Reddy, Managing Director of Apollo Hospitals Enterprise Limited, has indicated that rising capital and operating costs are beginning to impact India's healthcare sector. Despite a reported 100-basis point increase in costs, Reddy emphasized the sector's resilience, driven by substantial demand and long-term growth prospects.
The current global economic climate, marked by high oil prices and inflation concerns, is contributing to increased input and financing expenses across industries, including healthcare. Reddy highlighted the critical need to maintain affordable healthcare services, especially as insurance coverage expands, making cost stability essential.
To manage these pressures, Reddy suggests structural changes such as diversifying supply chains and revisiting customs duties. She noted that India's healthcare sector continues to attract international patients due to its ability to offer high-quality care at competitive prices. Future growth opportunities are seen in medical technology, with a focus on developing equipment at significantly lower costs than in the United States.
