The COVID-19 pandemic continues to pose a great risk to the health and safety of the people of India. The persistent threat of new variants has reinforced the need to stimulate investment and partnerships in the health sector.
India has the potential to generate a staggering $774 billion in healthcare revenue by 2030, suggests a new report from Aspire Circle, a champion and advocate for impact leadership social. The report showed that with an investment of $217 billion, the country can create 12 million jobs in health and related sectors, which can impact 1.5 billion lives by 2030 .
India’s third largest private sector bank, Axis Bank, has pledged to strengthen India’s healthcare infrastructure by signing a Memorandum of Understanding with IPE Global Ltd for the SAMRIDH Healthcare blended finance facility.
Under this partnership, Axis Bank will provide affordable financing of up to $150 million through SAMRIDH, to support healthcare companies and innovators who otherwise would not have access to affordable debt financing. The ability to access loans will help them scale up their production and provide advanced health solutions to deal with COVID-19 as well as other health emergencies, especially in vulnerable communities across India. tier 2 and 3 cities.
What is SAMRIDH?
SAMRIDH, an initiative supported by the United States Agency for International Development (USAID), leverages philanthropic capital and public sector resources to overcome barriers to commercial investment in small and medium-sized health enterprises.
Development funding alone is insufficient to address the diversity and scale of India’s health challenges. However, through strategic partnerships, it can be leveraged to ease barriers to healthcare investors and unlock public and private capital flows for high-impact solutions in the sector. Leveraging this approach, SAMRIDH combines philanthropic and public funds with commercial capital, to raise more than $100 million to support healthcare enterprises. The program uses a three-pronged tactic to raise a pool of capital from various partners.
This partnership with Axis Bank will enhance SAMRIDH’s efforts to scale market solutions and innovations across the healthcare value chain, complementing pharmaceutical manufacturing and distribution, expansion of public and private hospital facilities , nursing homes, small clinics, laboratories and warehouses.
Speaking about the collaboration, Veena Reddy, USAID/India Mission Director, said, “Private enterprise is a powerful force for improving lives, strengthening communities, and accelerating sustainable development. Increasing access to affordable capital for small businesses with solutions for greater reach will enable long-term impact. This new partnership between Axis Bank and SAMRIDH will strengthen our joint efforts to provide innovative healthcare solutions to some of the most vulnerable people in India.
“Our partnership with SAMRIDH will enable the Bank to extend much-needed debt support to more entities working to strengthen India’s healthcare infrastructure, in order to cope with the third wave of the pandemic. and any other emerging health challenges,” Subrat said. Mohanty, Group Director, Axis Bank Business Group, Axis Bank.
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