AI MEDICAL:

1. Indians’ Perception of Health

The traditional Indian medicine Ayurveda, meaning “wisdom of life,” reflects how Indians view life and health as inseparable. This long-standing perception has translated into a significant interest in the modern Indian healthcare industry.

According to the India Brand Equity Foundation (IBEF), as of 2021, the Indian healthcare industry employed 4.7 million people. This vast sector encompasses diverse fields such as hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance, and medical equipment. The rising living standards of the Indian populace and the industry’s extensive coverage underscore its high potential.

In 2021, India’s Medical Tourism Index (MTI) ranked 10th among 46 countries. The lower price points compared to other medical tourism destinations contribute to its competitiveness. About 180,000 foreign tourists visited India for medical tourism in 2020, increasing to 300,000 in 2021.

Since 2016, the Indian healthcare industry has grown by 22.52% annually. As of 2022, the market size reached USD 372 billion, and it is projected to expand to USD 610 billion by 2026. The telemedicine sector is also expected to grow at an annual average rate of 31%, reaching a market size of USD 5.4 billion. Similarly, the AI healthcare sector is predicted to grow annually by 45%, significantly contributing to the transition to technology-driven healthcare solutions.

2. Indian AI Healthcare Industry

The AI healthcare sector is one of the most notable areas within the Indian healthcare industry. In 2018, India’s AI sector expenditure increased by over 109% from the previous year, reaching USD 665 million, and it is expected to exceed USD 11.8 billion by 2025. However, the Indian AI healthcare industry faces several challenges, including a low ratio of medical personnel to patients, a shortage of skilled human resources, diagnostic errors, and delays. AI is emerging as a viable solution to address these issues.

According to INDIAai, the national AI portal developed by the Indian government, the Indian AI healthcare market size is expected to grow annually by over 40% by 2025. As of 2024, the number of patients per doctor in India is 834, which is below the World Health Organization (WHO) standard of 1000. However, most medical personnel are concentrated in metropolitan areas, with rural and peripheral regions significantly lacking healthcare facilities. About 70% of medical facilities are concentrated in urban areas, which contain 30% of the population. As of 2020, 66% of deaths in India were due to non-communicable diseases (NCDs) such as diabetes, cardiovascular diseases, and cancer. The increase in chronic conditions is also accelerating the adoption of AI in the healthcare sector.

AI healthcare offers significant advantages in processing vast amounts of medical data and speeding up diagnosis and treatment processes. In 2020, India’s out-of-pocket healthcare expenditure accounted for 47.1% of total healthcare spending. Although this has slightly decreased from 62.6% in 2015, it remains high. The implementation of AI in healthcare is expected to significantly contribute to cost-efficiency and improved healthcare accessibility.