Introduction
In the wake of the Covid-19 pandemic, the healthcare sector has undergone a remarkable transformation, fueled by digital advancements. This paradigm shift has extended healthcare beyond the confines of traditional hospitals, enabling ubiquitous access to care through mobile technology. The impact of digital healthcare extends far beyond patient well-being; it has also emerged as a catalyst for overall economic growth. In this article, we explore how digital healthcare contributes to the growth of economies and examine the case of India as a prime example.
Digital Economies: Unlocking Massive Potential
The Indian Electronics and Information Technology Ministry’s report highlights the potential for creating over $1 trillion of economic value from the digital economy by 2025 in India. This value represents a significant portion of the country’s nominal GDP, ranging from 18% to 23%. The report emphasizes the emergence of new digital ecosystems in various sectors, including healthcare, which will drive economic growth. The estimated increase in economic value from India’s digital transformation presents immense opportunities for global and local businesses, start-ups, and platform-based innovators. These stakeholders are poised to invest in emerging technologies tailored to India’s unique needs, such as artificial intelligence, blockchain, drones, and robotics. The digital economy’s growth will unlock unprecedented potential and shape India’s economic landscape for years to come.
Digital Healthcare: Transforming the Indian Healthcare Sector
India’s healthcare sector has long been a vital contributor to the country’s economic growth. Digital health has emerged as a pivotal force in driving this growth by enhancing the quality, accessibility, and affordability of healthcare services. The digital healthcare market in India reached a value of US$116.61 billion in 2018 and is projected to experience a Compound Annual Growth Rate (CAGR) of 27.41%, reaching US$485.43 billion by 2024.
The increasing importance of digital health and technologies has spurred capital investments in the sector. Angel investments in healthcare witnessed a substantial increase in both volume and value. In 2020, the first quarter alone saw a 50% increase in volume (21 deals compared to 14 deals in 2019) and a 14% increase in value (US$452 million versus US$398 million in the first quarter of 2019). These investments demonstrate the growing confidence and recognition of the potential of digital health in India’s healthcare landscape.
Government Initiatives and Start-up Innovations
The Indian government has actively contributed to the digital ecosystem’s development by introducing the National Digital Health Blueprint (NDHB) and implementing the National Digital Health Mission (NDHM). These initiatives aim to facilitate a comprehensive and holistic transition into integrated digital healthcare services. Leveraging the digital space, healthcare start-ups have emerged as game-changers, transforming the sector through technology-driven service models.
One notable example is the rise of new-age pharmacists, challenging traditional pharmacy practices. Health tech start-ups have introduced value-based home healthcare services for patients requiring post-acute rehabilitation. Virtual care platforms have revolutionized the healthcare journey, transcending hospital environments, reducing complications, improving clinical efficiency, and enhancing the patient experience. These digital health start-ups are also bridging the healthcare divide, connecting patients in remote areas to physicians in urban centers. This expansion of digital healthcare services showcases its potential to reach underserved populations and improve overall healthcare access.
Strengthening Healthcare Infrastructure and Budgetary Allocations
India’s National Health Policy aims to increase public spending in the health sector from 1.15% to 2.5% of GDP by 2025. However, budgetary allocations in recent years have witnessed only marginal increases. The Covid-19 crisis has underscored the urgent need to bolster healthcare infrastructure, including digital health capabilities. To address this, the healthcare sector expects the government to allocate an additional 0.5% of GDP annually for the next five years, signaling a renewed commitment to the nation’s well-being.
Historically, India’s healthcare spending has lagged behind that of neighboring countries. However, the pandemic has served as a wake-up call, prompting increased investments in the sector. This shift is driven by the realization that technological disruptions and digital solutions offer viable alternatives to conventional care delivery systems. The focus now lies in strengthening India’s healthcare infrastructure and leveraging digital innovations to meet the growing demand for accessible and quality healthcare services.
The Road Ahead: Seizing Opportunities
The global digital health market presents tremendous growth prospects, with technology-enabled healthcare ecosystems at the forefront. Indian start-ups have already demonstrated promising signs of success and have a pivotal role to play in shaping the future of digital healthcare. To meet the demand for ICT solutions, start-ups must scale up their offerings within the healthcare ecosystem, not only for post-Covid-19 economic recovery but also for long-term transformation. Digital health will act as a catalyst, empowering the healthcare industry to address challenges effectively.
To fully realize the potential of digital healthcare, India must invest in improving mobile internet access, affordability, and quality. Additionally, generating investments in digital enterprises and allocating resources for digital research and development will fuel innovation. Prioritizing the training of digital talent and leveraging digital applications to create employment opportunities are crucial for sustainable growth. By fostering a vibrant health start-up ecosystem, India can forge a new healthcare economy that delivers improved outcomes for all.
Conclusion
The digital revolution in healthcare has ushered in a new era of growth, transcending traditional boundaries and enabling unprecedented access to care. India, with its burgeoning digital healthcare market, stands poised to leverage this transformation to drive overall economic growth. By embracing digital technologies, investing in infrastructure, and fostering a supportive ecosystem, India can unlock vast potential and emerge as a global leader in digital healthcare. The Covid-19 pandemic has provided a valuable impetus for change, emphasizing the need to prioritize digital healthcare and shape a future where quality healthcare is accessible to all.
Reference: “HOW DIGITAL HEALTHCARE WILL HELP TO GROW OVERALL ECONOMY?” — TechStory Guest, January 20, 2021
