As the Asian economies continue to rise economically, they are simultaneously going through phases of development and modernization. This fast-paced journey of most Asian economies has brought promising investment opportunities for both domestic investors and those abroad across a number of sectors. The healthcare sector offers a lucrative investment opportunity. There has been increased investment in the healthcare sector across all major Asian economies, specifically China and India.
India’s healthcare market has been slated to rise to $370 billion by 2022. The Chinese healthcare market, on the other hand, is expected to grow to over a trillion dollars in the same time period. And while these figures seem impossible to ignore, investors should also be aware of the risks that inherently come as part of the package.
The Chinese government is well-aware of the dismal public health indicators and seems to be serious about changing the situation. According to the 2017 health index, China‘s public health provision was quite poor with only 31.5 doctors per 1000 people. Since then, the Chinese government has been heavily investing in a number of diverse healthcare programs and initiatives. There has been unflinching government support when it comes to the provision of health care services. The government has invested in research and development of drugs and even initiated a public cancer treatment initiative recently. The Healthy China 2030 initiative by the Chinese government will see more investments in the healthcare sector in the coming years. The 2030 Healthy China initiative is an elaborate plan to uplift the healthcare sector in China. Over 20 departments came together to devise this road map for the healthcare sector in China as it is envisioned by the Chinese government to go on to become a key pillar of the economy.
China is a leader in health science innovation and this strength is leveraged to improve the healthcare sectors’ services.
On the other hand, the Indian government confessed similar plans to improve the quality of its public healthcare system. There are public hospitals that provide free medical services but the quality of services can be worked on. The Indian government has not only invested in the healthcare sector itself but has also invited the diverse private sector to invest as well. Between 2007 and 2017, private investment in the healthcare sector in India amounted to almost $3.4 billion.