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Healthcare
and
Dental
Industry in

Indian Dental Association

India

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CONNECTING MINDS, CREATING THE FUTURE

India is now among the top 1 to 3 in most parameters: GDP, size of economy, IT, pool of scientific manpower,
space, eco-protection measures, power generation, among the largest exporters, emerging, fast growing
economies, global manufacturing and trading hub, infrastructure, tourism, agricultural and dairy production,
highest % of young population in the world, the list is quite long!
India has the second highest number of the English language speakers in the world, next only to the USA. There
are more than twice as many English speakers in India as in the UK, where the English language originated.....
Healthcare is one of the top priority sectors for India.
India is now the much sought after destination for medical tourism, owing to its high quality medical treatment
available here from world class competent medical professionals in a very humane and courteous way at a very
reasonable cost. Latest medical technology and equipment are being used. State-of-the-art hospitals, clinics and
nursing homes are coming up and are managed in a very professional and disciplined manner, foremost priority
being accorded to patient-care and patient-comfort. These healthcare establishments give excellent facilities,
while observing the highest standards in cleanliness, sanitation and hygiene.
The Union Government of India and the State Governments have been zealously and successfully implementing
immunisation programmes. Child health, womens health and healthcare for the aged all are seeing quantum
leaps of improvement.
Healthcare is now accessible alike for the underprivileged, rural masses and urban elite.
Good sums of money are being invested to promote R & D in healthcare.
Dentistry too has kept pace with these developments.
Awareness on oral health has scaled great heights among the Indian population. Proper daily dental care and
regular visits to the dentist are now part of the lifestyle practices.
Abundant natural resources, world-class manufacturing facilities, ample land space for setting up factories,
skilled, favourable Government policies for foreign collaborations, quality-conscious and reasonably priced
manpower and worker-force - all these together make India THE IDEAL choice for outsourcing manufacturing
activities.
Our theme, Connecting Minds, Creating the Future, is globally applicable today.
India is beckoning you with open arms!!
We are sure your business will see huge gains by tapping the Indian market.
Once again, Welcome to incredible India!
Thank You
Dr. Ashok Dhoble,
Honorary Secretary General, IDA

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An Overview

CONNECTING MINDS, CREATING THE FUTURE

Indian Population

For a population of over 1.2 billion, there are currently over 1,80,000 dentists, which include 35,000 specialists
practising in different disciplines in the country. The dentist population ratio is reported to be 1:9,000 dentists
in metros / urban and semi urban areas and 1:2,00,000 dentists in the rural area. There are more than 35,000
dental specialists in different disciplines. The number of dentists is expected to grow to 300,000 by 2018 and
the dental specialists to 50,000. Every year more than 24500 dental graduates are added to the list.

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General Health Sector

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Healthcare and Dental Industry in India

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General Health Sector

Healthcare as an industry in India
has grown to become one of the
most promising and progressive
sectors poised for rapid growth.
It is expected to reach US$ 100
billion by 2015 from the current
US$ 65 billion, and is projected to
reach USD 250 billion by 2020.
Indias one billion plus population
and the sustained rapid economic
growth the country has been
experiencing continues to create
tremendous demand for better
healthcare.A major thrust on
medical tourism, government
initiatives and focus on public
private partnership has added
stimulus to this growth.
Apart from the presence of
corporate hospitals, the availability
of highly qualified doctors and
scientists, their expertise and
state-of-the-art technology
have enabled India become an
attractive destination globally for
medical tourism, clinical studies
and research and development.

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General Health Sector

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Healthcare and Dental Industry in India

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Dental Health Sub-Sector

The potential size of Indias dental
market is vast and is expected to
become one of the largest single
country markets for overseas
dental products and materials.
The total market for the dental
equipments and materials is
estimated to be around US$ 90
million annually.
The Indian market presents
lucrative and diverse
opportunities for exporters with
the right products, services and
commitment. There are more than
1,80,000 dental professionals in
India, 297 dental institutes and
over 5,000 dental laboratories.

According to various reports,

growth rates 20 to 30 per cent are
forecast for the dental product
market in the coming years.
Some financial investment groups
are also building hospitals with
dental specialisations, offering
general dental care, and speciality
treatment.

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Factors Driving Growth

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Healthcare and Dental Industry in India

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Factors Driving Growth

In the last decade the dental
services scenario in India has vastly
improved due to:
Growing Healthcare Awareness

Better Economic Growth

The GDP growth of India in
2012/13 was about 5.5% and is
expected to grow in 2013-14at
6.1%.
A consistent growth rate of the
economy averaging 8% over the
decade.
Indias per capita income has
experienced a steady growth in
last ten years

Growing awareness and
patient empowerment have led
to demand for better healthcare
facilities at affordable prices.

According to a United Nations

annual economic report - World
Economic Situation and Prospects
2012 - the Indian economy is
expected to grow between 7.7 %
and 7.9 % this year.

Extensive economic reforms

in the last decade have made
it possible for Indians to have
access to better jobs and a higher
purchasing power.
Many Indians are now
choosing to take health insurance,
clearly showing that growing
segments of the population can
afford high quality treatments.

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Healthcare Expenditure
Indias healthcare
expenditure is significantly low
when compared to the global,
developed and other similar
emerging economies.

Total expenditure (public and

private) on health in India was
nearly 4.05% of GDP in 2010
as compared to 2 % in the year
2004according to World Bank
report published in 2012.
Government spending on
health is less than 20% against
the average spending of 30
- 40% in other developing
countries. Private spending
constitutes 80%.
The Central budget for
2013-14 providesRs.3,73,300
million(US$6816 million) for
the health sector.
The Planning Commission
has allotted US$ 83 billion
under the 12th Five Year Plan
for healthcare spending; this
is about US$ 60 billion more
as compared to the 11th Plan
allocation.

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the increased allocation is

expected to raise government
(public) expenditure on health
to 2.5% of GDP from the
current rate of 1.37% of GDP.

Government Policies
The Government has taken
several steps to promote
investment in healthcare and
to develop healthcare sector
infrastructure within a short
span of time. Some of the
initiatives taken up by the
Government are:
100 per cent FDI is permitted
for health and medical services
under the automatic route.
Reduction of customs duty
on all medical, surgical and
dentalequipments etc from.
7.5% to 5%.
Full exemption from excise
duty/Countervailing Duty to
six specified lifesaving drugs/
vaccines.
Liberal polices of
Government has created
opportunities for international

Healthcare and Dental Industry in India

dental manufacturers to
establish joint ventures and
outsourcing facilities.
Lower tariffs and higher
depreciation on medical
equipment & income tax
exemption for 5 years to
hospitals in rural areas, and
Mini Metros.

National Rural and Urban

Health Missions
The government seeks to
provide effective healthcare by
fusing the National Rural and
Urban Health Missions into
National Health Mission and
providing higher allocations. It
is considered as the single-most
largest programme in the world
to improve primary healthcare
delivery in India.
The Mission is an expression
of the governments commitment
to raise public spending from less
than 1% to 2-3% of GDP .
Allocation of Rs. 21,2000 million
(US $3926 million) has been made
for National Health Mission (NHM)
in 2013-14.

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Dental Market Potential

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Dental Market Potential

Market Size
By 2014 the Indian dental
healthcare industry is expected
to reach US$ 116.43 million
growing 6 percent annually,
the dental care services market
US$ 1.16 billion and oral care
market US$ 1.8 billion. Indian
dental care services market,
constituted by dentists and
dental ancillary services, was
estimated at US$ 660 million
in 2009, dental equipments
& appliances market at US$
87million and dental oral care
market was estimated at US$
1 billion. The potential size
of Indias dental market is vast
and is expected to become one
of the largest single country
markets for overseas dental
device and materials exporters.
Global dental care market
estimated to be about US$16
billion in 2005 has been
growing at an average annual
growth rate of 4.5%.
The market has grown at a
CAGR of 5% in the last 5 years.
Asian market has witnessed
the highest growth rate of 10%,
followed by the US at 5.5%.

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The Indian healthcare

market is one of the largest
services sectors contributing 2
percent to the countrys GDP.
Indias market for dental
products is extremely dynamic,
with a current estimated
growth rate of between 25 to
30%.
The healthcare segment
offers an attractive growth
opportunity for the information
technology (IT) and business
processing outsourcing (BPO)
industry.
The market for outsourced
services to healthcare providers
is expected to increase from
US$ 9 billion in 2011 to US$ 15
billion in 2016.
In addition, the Indian
pharmaceutical market is
also expected to grow at a
compound annual growth rate
of 15.3 per cent during the
period 2011-12 to 2013-14,
as per Barclays Capital Equity
Research report on India
Healthcare & Pharmaceuticals.

Healthcare and Dental Industry in India

In 2009 the dental equipments

& appliances market was
estimated at US$ 90 million,
the dental care services market,
constituted by dentists and
dental ancillary services, at
US$ 660 million and dental
oral care market at US$ 1.8
billion. By 2014, the Indian
dental equipments industry
is expected to reach US$
116.43 million, growing at
10%annually, the dental care
services market US$ 1.16 billion
and oral care market US$ 1.8
billion. Overall, the dental
market is expected to grow by
20 percent.

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Oral Care Infrastructure
In India, the oral care
infrastructure had 1,80,000
dentists as of 2012, serving
over one billion population
through their clinics numbering
over 1,25,000. As far as the
overall ratio of dentist to
population is concerned, there
was a marked improvement.
There are around 297 dental
schools with 25,000 students
graduating each year; about
140 of such schools have post
graduate courses in various
fields of dentistry.
More than 90 % of the
practitioners work in and
around the major cities and
play an extremely influential
role in the purchase of dental
devices and materials for
hospitals, clinics and other
healthcare facilities.

The great majority of

dentists prefer to work in
private clinics which are thus
experiencing an impressive
growth.

Recent trends are for group

practices. Vasan group, Manipal
group, and some other groups
have started a chain of dental
clinics

Job opportunities are less in

government and private sector;
so most dental professionals
have to start private dental
offices.

Many other companies are

in the process of starting a
chain of dental clinics.

Every year approx. 12,000 to

15,000 new practices start in
the country.
Currently 99 % of the
patients visit private practices
as government facility is very
less compared to the private
practices.
Most practices are Solo with
Multi Operatories.

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General Hospitals
According to the Confederation
for Indian Industries (CII), there
are more than 15,000 private
hospitals and nursing homes in
India, and a majority of them
are located in the major cities.
Many of these hospitals and
nursing homes (especially
private) provide dental
services and tend to invest in
sophisticated foreign medical /
dental devices.
Many private organisations
like Apollo group, Wockhardt,
Fortis Healthcare, Max
Health, Piramal Healthcare
have invested large amounts

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of money in starting a chain

of hospitals in the country.
They have exclusive dental
departments to serve the
patients.

Dental Laboratory/Dental
Technician
There are more than 5,000
dental laboratories in India
and currently only 32 colleges
offer diploma courses in Dental
Technician. The low percentage
of students currently passing
out is not able to meet the
rapidly growing requirement.
Lately, this number has been
showing an increasing trend to
meet the growing demand.
Multinational Presence

Healthcare and Dental Industry in India

Looking at Indias rapidly

growing dental market many
multinationals like KAVO G C,
Ivoclar Vivadent, Dentsply,
3M, Nobel Biocare, Mecktron,
Sirona, Aceton, Ultradent,
Coltene, Voco, S S White,
Shofu, and others have set up
offices in India.
Further, the healthcare
segment offers an attractive
growth opportunity for the
information technology (IT)
and business processing
outsourcing (BPO) industry. The
market for outsourced services
to healthcare payers is expected to
increase from US$ 9 billion in 2011
to US$ 15 billion in 2016.

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Investment Opportunities

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Investment Opportunities

The Challenge
As the demand for healthcare
services in India tends
to increase, provision of
affordable healthcare
services to Indias billion-plus
population presents enormous
challenges and offers enormous
investment opportunities.
People are becoming more
health conscious day-by-day
and spending much more
on health and importance of
dental care & cosmetics.
The Manufacturing Hub
The Indian dental equipment
and appliances market is
around $ 90 million, with a
yearly growth rate of 10 per
cent per annum. There are
forecasts of possibilities of
doubling the growth rate
up to 20 per cent for the
dental technology market in
the coming years. Further,

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several foreign companies are

already investing in the Indian
dental equipment market by
establishing their production
units. India is, therefore,
becoming a manufacturing hub,
supplying dental equipment
and material to less developed
countries such as Sri Lanka,
Pakistan, African continent and
the Middle East.
Dental Products Manufactured
in India
Quite a few Indian dental
product manufacturers are
currently supplying quality
dental equipment and
materials. However a larger
proportion is imported.
Foreign Direct Investment
The healthcare and life
sciences sector has received
the maximum investment from
private equity (PE) and venture

Healthcare and Dental Industry in India

capital (VC) players, attracting

US$ 817 million across 29
investments till August 2012,
according to data from Venture
Intelligence. Last year, 38 deals
were recorded in the sector
worth US$ 421 million.
The hospital and diagnostic
centre in India has attracted
foreign direct investment (FDI)
worth US$ 1.48 billion, while
drugs & pharmaceutical and
medical & surgical appliances
industry registered FDI worth
US$ 9.78 billion and US$ 571.91
million, respectively during
April 2000 to October 2012,
according to data provided by
Department of Industrial Policy
and Promotion (DIPP).
The private sector has emerged
as a vibrant force in Indias
healthcare industry.
Sectoral Growth
Tele medicine services in
India are also expected to
grow, which in turn should
create demand for diagnostic
equipment such as X- rays, CT
scanners.
Outsourcing
Healthcare BPO: insurance billing,
disease coding, forms processing
and claims adjudication and
telemedicine.

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Multiple segmentation

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Dental Imports

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Dental Imports
Indian dental industry
depends on substantial
imports. The proportion
of imports is the highest
in the Indian dental
equipment and implants
segments.
Countries & Category of
Import
About 85% of Indias
annual requirement
of dental equipment,
instruments and materials
demand is met mainly by
imports primarily from
Germany, USA, Italy, Japan
and recently from China,
as India has less number
of manufacturers and
is largely dependent on
imports.

As regards the possibility

of importing dental
equipment and materials
to India, the leading
categories constitute
consumable items,
implants, X-Rays, dental
units and imaging systems,
with a major increase
in dental laboratory
equipment and materials,
dental drills, scalars and
hand pieces.
The growing awareness
about cross-infections
and government controls
has brought dental
professionals to invest
more in sterilization
equipment/devices.

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Knowledge Enhancement

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Knowledge Enhancement
Educational training

Contract Research

There is excellent scope to

set up teaching institute
imparting dental education,
especially for post graduation
and research institution
and large opportunity for
training doctors, and dental
technicians. Workshops,
Hands on Courses, Continuing
Dental Education, and Dental
Practice Accreditation are
some of the areas where
collaborative ventures offer
scope.

India has been playing the

role of a contract research
organization providing support
to the pharmaceutical,
biotechnology, and medical
device industries in the
form of research services
outsourced on a contract
basis.

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Health Infrastructure

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Health Infrastructure
Various funding agencies
have been providing financial
assistance to develop
healthcare infrastructure
facilities.

World Bank Aid

India needs to invest an
additional 3-4% of GDP on
infrastructure to sustain its
current levels of growth and
to spread the benefits of
growth more widely.
The World Bank will
lend India $14 billion for
development of health
infrastructure.

Oral Cancer Detection

Centre
Government of India initiated
the National Cancer Control
Programme with grant of
financial support for primary
prevention, early detection
and treatment of cancer. A
grant of US $ 1 million is
provided cancer detection
centre.

Future Prospects
Dental tourism

There has been a paradigm

shift in the quality of

technology and infrastructure

in Indian dental services.
Providers are now focused on
the latest treatment methods
to provide quality dental
care in India to international
patients. Dental Tourism
forms 10 percent of the total
medical tourism industry and
is projected to grow at 30
percent per annum by 2015
to Rs.95000 million (US$
179,500).
Health / Dental Insurance
After liberalization of
economic policy, a large
number of private players
have been offering various
plans. Less than 10% of the
population is covered by
health insurance. Health
insurance plans also include
dental care benefits.

The Road Ahead

There is a huge opportunity

in India for any country to
maximise the investment
potential that exists in
India within the healthcare
environment. IDA will explore
all possibilities to promote
greater investment in the
healthcare sector, particularly
in the dental health sub-sector,
to sustain the momentum of
growth in the country.

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Indian Dental Association

Head Office
Block No.6, Sane Guruji Premises
386, Veer Savarkar Marg
Prabhadevi, Mum-25
Tel: 022 4343 4545 / 022 2369 6655 /
022 2367 1515
Email: [email protected]
URL: www.ida.org.in

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