| The India education market at around $80bn has the Govt. spending around $30bn (3.7% of GDP) with the private sector accounting for the balance, with overall spend on education at around 7% of the private consumption expenditure in India. Similarly healthcare is one of India’s largest sectors, in terms of revenue & employment, with a total value of around $57bn, representing around 5.6% of GDP with growth projections at over 15% CAGR till 2012. Govt spends on healthcare account for only 20% of this sector, throwing up large inadequacies in India’s healthcare infrastructure & services.
Thus both these sectors offer extremely attractive investment opportunities across the entire value chain in basic/higher education, training & skills development in the education sector and due to increasing population & lifespan, rising household income & affluence, changing disease profile, availability of adequate health insurance & increased medical travel, the healthcare & allied services sector also poses a huge opportunity to invest.
Both sectors being recession proof and fairly un-represented in the stock market, provide ample opportunity for private equity investments to provide attractive returns in due course. |
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