1. Healthcare An Unprecedented Opportunity

2. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

3. India - An Introduction  Population  States/UTs  Geographical Area  Languages recognised  Business language  Per Capita Income**  GDP** Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO Statistics

4. India - Fast pace Growth  Largest democracy  4th largest economy by PPP index  6th largest energy consumer  ForEx reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February, 2005)  GDP growth to continue between 6-8%  3rd largest economy by 2050: Goldman Sachs  Leading in IT & BPO  Oil & Gas and Biotechnology sunrise industries

5. India - Leading the world  Hero Honda - largest manufacturer of motorcycles  Moser Baer - among the top three media manufacturers in the world  Pharmaceutical Industry - 4th largest in world  Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India  100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

6. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

7. Million, 2000-2001Per cent, 2000-2001 Healthcare Education Retail banking Power Railways Telecom Hotels, restaurants IT Healthcare Delivery Market RevenuesLargest service industry EmploymentSecond largest after education SectorDirect employmentRevenues/GDP Source: National Accounts Statistics, 2001; Manpower profile; CBHI; McKinsey analysis

8.  Growing at 13% p.a  Expected to grow at 15% over next 4-5 years Healthcare Delivery Market Size 2000-01 US$ 18.7 bn 5.2% of GDP US$ 45 bn 8.5% of GDP 2012 (projected)* * Source: CII – McKinsey

9. 5.2% of GDP Total Healthcare market Pharma market Healthcare delivery market India spent US$ 22.4 billion on healthcare (2001) Rising Healthcare Spending

10. Out-of-pocket Prepayment Two-thirds of healthcare spending is out-of-pocket Household - Major Consumer 100% = USD 1,830 million Government’s spend Private/social/ community insurance Employer’s spend Direct household spend 2000-01 Source:NSSO;CMIE;NCAER;Annual Reports;Govt Budgets;Economic Survey 2000-01

11. Government & public employers Private providers 100% = USD 1,830 million In terms of delivery, private providers capture 63% of US$ 1,830 million spend Healthcare - Private sector Dominates Source: CII -McKinsey

12. Health Insurance in India  Liberalising insurance sector  Multinationals building local partnerships

13. Health Insurance in India  Growth of insurance cover100% in last 2 years  Health insurance cover 3 - 4 % of 1 billion population

14. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

15. MNCs in India Philips emerging as number two in Indian medical systems market Siemens leading manufacturer of medical equipment Proton Healthentering India with digital health Caremonitoring devices Drager Medicaljoint venture between Dragerwerk AG AG and Siemens AG Wipro GE largest medical systems sales & Medical Systemsservice provider in India

16. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

17. Invest in India India requires US$ 25 billion in fresh investments over the next 8-10 years Source: Indian Healthcare Federation, CII

18.  Service providers  Manpower training  Infrastructure  Insurance  Materials Curative and preventive in primary, secondary and tertiary care; rehabilitative- geriartric and others Doctors, managers, nurses, technicians Medical equipments & service equipments Hospitalisation Medicines disposables Invest in India

19. Preventive and curative care Rising demand for multi and super-speciality services Shift from infectious to lifestyle diseases 85% of inpatient spend on five categories Cardiology, Oncology, Trauma, Acute Infections and Maternity

20. In ten years between 1993-94 and 2001-02, aggregate household expenditure on health services increased by an annual compounded rate of 9.3% Rising demand for quality healthcare

21. Corporatisation of Indian healthcare Corporate hospitals 150 Private hospital beds 32% of total hospital beds

22. Only 2.5 million or.25% of population insured 315 million people in India can afford insurance Health Insurance - A vast untapped market

23. Projected insurance base 200530 million 2010160 million Health Insurance - A vast untapped market Source: India Country Commercial Guide 2002

24. Addressable population for preventive healthcare check-ups 160 million Year - on - year growth more than 20-25% over 2001-2003 Preventive healthcare

25. By 2008 USD 4.5 billion opportunity employing 200,000 people* Forms processing Medical billing Disease coding Claims adjudication Healthcare BPO - Promising dynamism *Source: NASSCOM

26.  Rural population of 650 million people Telemedicine - Diversifying opportunity  Tap the large Indian landscape

27. The Indian Biomedical Devices Market  SizeUS$ 1.5 billion  Growing demand for medical equipment

28. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

29. Growing population 2.5% annually Expanding working population group 65% by 2020 Improving life expectancy Age 15-54 2001 55% 2010 59% Demographic Advantage

30. 23,000 Primary Health Centres 132,000 Sub-centres 2,400 Community Health Centres 1500 urban health posts 1,200 ESI and PSU hospitals 117 tertiary medical colleges and hospitals 4,400 district hospitals Urban Tertiary Care Secondary Care Primary Care Rural Infrastructure

31.  Healthcare facilities - high quality at low cost  Edge in surgical treatment Potential to earn USD 1 billion from medical travel Medical Tourism

32. Cost of advanced surgeries in India is attractively low compared to US Cost Advantage 2,50,00030,000 Bone Marrow Transplant 30,0005,000 - 7,000Heart surgery 5,00,00040,000Liver Transplant IndiaTreatment All figures in USD US

33. Low in cost High on quality Quality Advantage Services and facilities in India

34. Increase in5% of GDP by 2010 health spend Increasing budgetary Over 20 % per annum allocation 2005 Union Budget Infrastructure status not conferred 2005-06 Custom Tariff on Rates reduced from20% to 15% medical equipment Policy Advantage March 2005

35. Healthcare  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

36. Indian Healthcare Federation c/o Confederation of Indian Industry The Mantosh Sodhi Centre 23, Institutional Area Lodi Road New Delhi - 110 003. Tel 00 91 11 2462 9994-97 Fax 00 91 11 2462 6149/2461 5693 E mail c.banerjee@ciionline.org Contact in India