Medical tourism will help drive Indian pharma industry to reach $55 billion by 2020

The Indian pharmaceuticals market is expected to touch $55 billion by 2020 from $36.7 billion in 2016, growing at a compound annual growth rate (CAGR) of 15.92%, according to a new report.

Indian pharmaceuticals market increased at a CAGR of 17.46% during 2005-16 with the market increasing from $6 billion in 2005 to $36.7 billion in 2016. By 2020, India is likely to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size, noted the study titled `Medical Value Travel (MVT),` jointly conducted by the Associated Chambers of Commerce & Industry (ASSOCHAM) and research firm Indian Institute of Tourism and Travel Management (IITTM).

According to the report, Indian Health Care is expected to rise at a CAGR of 29% during 2015-20 to $280 billion with rising income, greater health awareness, increased precedence of lifestyle diseases and improved access to insurance.