PVP Ventures Ltd Management Discussions

Economic Overview

Global Economy1

In CY2024, the global economy grew steadily at 3.3%, despite facing headwinds such as political instability, trade wars and global uncertainties. Developing and global south led the way with growth of 4.3% supported by strong domestic demand and rising investment. On the other hand, advanced economies expanded modestly at 1.8%, restrained by tighter finances and lower consumption.

Governments worldwide took proactive steps to address long-standing issues such as aging populations and slower productivity by increasing spending on infrastructure, social programmes and digital technologies. Inflation eased to 5.7% globally as energy and food prices stabilised and supply chains normalised. In response, major central banks began easing their monetary policies to stimulate growth, improving business confidence and easing conditions in credit markets. However, international trade remained under pressure with new tariffs and rising geopolitical tensions, especially from the United States posing risks to cross-border commerce.

Outlook

The global economic outlook remains positively cautious and is forecasted to demonstrate stability and improved financial conditions. Global GDP is projected to grow by 2.8% in 2025 and slightly increase to 3.0% in 2026.

While projections for global trade volumes have been downgraded due to persistent economic uncertainties, emerging opportunities are evolving through political and regulatory frameworks. For instance, the Affordable Care Act and the BIOSECURE Act in the United States are promoting diversification of medical supplies away from China to the advantage of other nations.

Global inflation is projected to decline further, reaching 4.3% in 2025 and 3.6% in 2026, supported by continued normalisation of supply chains, stable commodity prices and declining energy prices. Most central banks are expected to maintain accommodative policies aimed at stimulating consumption and investment.

Global Growth Projections

WORLD ECONOMIC OUTLOOK APRIL 2025

(REAL GDP GROWTH, PERCENT CHANGE)

Indian Economy2

Indias economy displayed considerable resilience in the face of global challenges, achieving a growth rate of 6.5% in FY 2024-

25. This performance placed India among the fastest growing major economies and enabled it to surpass Japan to become the worlds fourth-largest economy. Growth was stimulated by a resilient services sector and high demand for manufactured exports such as electronics, semiconductors, defence gear and pharmaceuticals, despite ongoing supply chain disruptions. Government expenditure was one of the key drivers of this growth. The 2024-25 Union Budget allocated 11.11 lakh crore towards capital spending, reflecting investment in infrastructure, employment generation and long-term productivity enhancement. Government initiatives such as the Pradhan Mantri Jan Arogya Yojana contributed by increasing health insurance coverage and boosting demand for healthcare services.

Inflationary pressures ebbed, as headline inflation falling to

4.6% in FY 2024-25 from 5.4% in the previous year. In response to the improving inflation outlook, the Reserve Bank of India

(RBI) reduced the repo rate to 5.5% in June 2025, enhancing liquidity and encouraging private sector investment.

Outlook

Indias economic prospects remain positive, with GDP growth expected to hold steady at 6.5% in FY 2025-26. Continued investmentininfrastructure,coupledwithproactivegovernment policies and the accommodative monetary measures by the RBI, is poised to drive long-term growth.

With its robust economic foundation, India is well-positioned to become the third-largest economy in the world by FY

2027-28. As global firms seek to diversify supply chains away from China, India is emerging as a preferred destination and a potential global manufacturing hub.

The RBIs prudent monetary policy, coupled with political stability, is expected to sustain economic activity and maintain investor confidence. The government is also closely monitoring global trade dynamics, including tariffs and geopolitical shifts to ensure external sector stability. Trade agreements, such as the Free Trade Agreement with the UK, are anticipated to further support long-term economic growth.

Industry Overview

Global Healthcare Sector

The global healthcare sector is undergoing favourable transformations, driven by demographic shifts and enhanced access to medical services. Rising early diagnostic capabilities and the rebound in healthcare demand to pre-pandemic levels are generating a supportive environment for healthcare providers worldwide. In Europe, healthcare policies have increasingly prioritised treatment efficacy and patient-centric care. This change signifies a redefinition of healthcare success focusing on measurable health outcomes rather than mere service delivery. Major European economies, including France, the United Kingdom and Germany are restructuring their healthcare investment models to improve operational efficiency and outcomes. In the US, the passage of the BIOSECURE Act marked a significant policy development aimed at safeguarding domestic healthcare industry and reducing reliance on foreign medical supply chains.

Despite these advancements, significant health disparities continue to impact billions of individuals worldwide. Nearly half of the global population has no access to basic healthcare services, while an estimated two billion others suffer from severe financial hardships due to medical costs. These statistics highlight the urgent need for systematic reform in healthcare delivery and affordability. Addressing these challenges requires coordinated global action. The World Bank has launched an ambitious initiative aimed at assisting countries deliver quality and affordable healthcare services to 1.5 billion people by 2030.3

Global Healthcare Trends

	2021	2022	2023	2024E	2025F
Global
Global medicine spending (USDbn)	1,562	1,568	1,635	1,765	1,881
US (yoy % change)
Prescription drug expenditure	6.8	8.4	7.0	6.8	4.6
Hospital care expenditure	4.5	2.2	10.1	4.6	4.8

 

	2021	2022	2023	2024E	2025F
Core Europe a
Healthcare expenditure (% of GDP)	11.6	11.5	11.6	11.8	-
Number of public hospital beds/1,000	4.2	4.2	4.2	4.2	-
Pharmaceutical sales (% of GDP)	1.6	1.6	1.5	1.5	-

Source: Fitch Ratings

Cancer Care

Cancer remains the principal cause of death in the world. There were 20 million new cases and 9.7 million cancer-related deaths in 2022 alone.4 Increase in chronic diseases has fuelled the demand for early diagnosis and treatment of cancer across the globe. Non-profit organisations and government initiatives towards raising awareness regarding cancer prevention are driving the market growth.

The market for oncology globally was worth $225.01 billion in 2024 and is expected to reach USD 668.26 billion by 2034, growing at a CAGR of 11.5% over the forecast period. Estimated new cancer cases are projected to increase by 47% worldwide between 2020 and 2040. Incidence of cancer in India is estimated to increase faster than the world average at an estimated 1.57 million in 2025. This increased incidence is attributed to a combination of environmental and socioeconomic determinants, including high levels of pollution along with diet and lifestyle factors. Almost 40% of Indian cancers result from widespread tobacco use, which highly increases lung, oral and throat cancers. Physical inactivity and poor nutrition has also caused about 10% of cancers.6 The size of the oncology market is predicted to increase by USD 2.02 billion with a CAGR of 19.8% from 2024 to 2029.7

Renal Care

Globally, kidney disease is now estimated to impact over 850 million individuals. This accounts for over twice as many individuals as those with diabetes and 20 times more individuals with cancer. In spite of being the third quickest developing reason for death worldwide, kidney disease remains eclipsed by other diseases.

Chronic Kidney Disease (CKD) also finds rising prevalence with incidence of 10.4% in men and 11.8% in women. The bulk of the disease burden is located in China (up to 159.8 million cases) and India (up to 140.2 million cases) combined, which share a total of 69.1% of all Asian CKD cases. Amidst this backdrop, the global renal care industry demonstrated resilience through technological development, increasing access to care and policy development to mitigate growing disparities in treatment availability and increasing disease burden, notably in low- and middle-income nations. The global renal failure treatment industry was valued at $

122.03 billion in 2024. Looking forward, the course of the industry to 2030 will be marked by its success in translating policy awareness into implementable measures, harnessing technological innovations for inclusive access, improving access to more sustainable and providing quality care to the expanding global population with kidney disease. The industry is expected to reach USD 273.38 billion by 2034, at a CAGR of 8.40%.11

Geriatric Care

Today, 10.3% of the worlds population is 65 years and older, almost double the share in 1974 at 5.5%. The rapidly rising population ageing is also driven by declining fertility rate besides rising mortality rate. Over 60% of the global population lives in countries with total fertility rate below the replacement level, i.e., the average rate needed to replace a population over time, of 2.1 live births per woman.12 Approximately, two out of every three individuals who live to old age need help with daily activity over the long term, including eating, bathing and mobility.13 Yet care systems across the globe remain under-prepared. Approximately three-quarters of older persons are affected by chronic conditions, most with two or more simultaneously. Prevalent conditions are hearing loss, cataracts, cardiovascular disease, diabetes, depression and dementia. Adult mental illnesses greatly afflict people aged 60 years and older, dominated by depression and anxiety.

Around a quarter of the elderly report at least one Activities of Daily Living (ADL) limitation14 and around half report at least one

Instrumental Activities of Daily Living (IADL) limitation. Such complex needs require holistic, integrated care strategies.

However, according to the WHO-UN progress report (surveying 136 Member States in late 2022), just 27% of countries reported having adequate or substantial resources to implement person-centred, integrated primary health and social care for older adults. Among low-income countries, where reliance on unpaid family caregivers is highest, only 16% have established a training programme for informal caregivers of older people.15 The industry needs transformation at an urgent rate to cater to increased demand with dignity, accessibility and affordability for all aging populations globally. Global geriatric care market is valued at $ 1,144.26 billion in 2024.16

India is home to the worlds second-largest aging population.

India has around 104 million elderly, accounting for 10% of the countrys population. The country has undertaken landmark developments in elderly care including the National Programme for Health Care of the Elderly (NPHCE), NITI Aayogs holistic senior care transformations and increasing private sector involvement. Sustained government support will play a key driver for the industry as the countrys elderly population is projected to reach 19.5% of the total population by 2050.17 The world is witnessing unprecedented ageing of its population.

By 2030, one in six of the worlds population will be 60 years or older, up from 1.1 billion in 2023 to 1.4 billion in 2030. This population change will double to 2.1 billion in 2050. The 80+ group is growing especially fast, projected to triple from 2020 to 2050 to 426 million, making population ageing the most salient social issue of the 21st century. The global elderly care industry is projected to exhibit CAGR of 6.4%, reaching $ 2,127.85 billion by 2034.19

Indian Healthcare Sector

IIn the years during and following the Covid-19 pandemic, healthcare investment has grown significantly, identifying the need for a more resilient medical infrastructure. Government healthcare expenditure currently accounts for ~2% of the countrys GDP, indicating increased investment in this vital sector.20 Despite progress, key structural challenges persist. The country presently has 0.7 doctors per 1000 individuals, significantly below the global average of 1.5.21 This shortage is particularly acute in rural regions, where poor infrastructure and a lack of trained medical personnel hinder service delivery.

The countrys healthcare infrastructure comprises around

70,000 hospitals and roughly 19 lakh hospital beds catering to the population of 143 crore people. Of these private hospitals and individual clinics account for approximately 60%, while government hospitals account for the rest. With a bed to population ratio of only 1.4 per1000, the need for expanded infrastructure remains urgent.22

Government Initiatives

To address these gaps, the Government of India has undertaken various initiatives aimed at modernising and strengthening the healthcare ecosystem:

Ayushman Bharat Digital Mission (ABDM):

It is an extensive effort by the government to reinforce the nations healthcare networks. ABDM was conceptualised by the Ministry of Health and Family Welfare to make connections between hospitals, clinics, insurance firms, physicians, laboratories and pharmacies through a unified digital platform. It includes digital health IDs, registries and Electronic Health Record (EHR) systems to enhance healthcare accessibility and continuity.

Pradhan Mantri Ayushman Bharat Health Infrastructure

Mission (PM-ABHIM):

With an outlay of 64,180 crore, Pm-ABHIM aims to add

730 district-level labs, 3,382 block public-health units and 602 critical-care blocks, strengthening the healthcare infrastructure for future pandemics.23

United Health Interface (UHI):

This initiative aims to enable seamless digital health services, fostering interoperability across service providers.

Heal in India:

Positioned to establish the nation as a global hub for medical and wellness tourism.

The Indian healthcare industry stands at a transformative juncture, with substantial growth driven by favourable demographics and rising healthcare demand. The share of the population aged 60 and above is projected to grow from 8.4% in 2011 to 14.9% by 2036, creating a significant demand for healthcare services. The industry is projected to continue strong growth momentum, surpassing $320 billion by FY 2027-28, registering an annual growth of

12%. As the nation progresses toward its Vision for Viskit Bharat 2047, healthcare will remain a strategic focus area. The Government of Indias target of achieving a a doctor-to-patient ratio of 1:800 by 2030, aligned with

WHO recommendations, reflects the scale of ambition for healthcare transformation.

Indian Real Estate Sector

Indias real estate industry generates around 7% of the countrys

GDP and stands as the second largest employment-generating industry after agriculture. The sectors growth is fundamentally driven by significant demographic shifts, particularly rapid urbanisation, with projections indicating that by 2020, nearly half of Indias population will reside in urban areas. The residential segment continues to witness strong demand, propelled by population growth and rising discretionary incomes. Concurrently, the commercial segment is expanding, largely due to the increasing need for data centres driven by the surge in telecommunication services. Government policies have played a key role in shaping the sectors trajectory. Initiatives such as affordable housing schemes, tax incentives on housing loans and Smart Cities Mission have catalysed sectoral growth. In addition, the launch of Real Estate Investment Trusts (REITs) and the advent of property-technology platforms have improved market liquidity and transparency.

The outlook for Indias real estate market remains optimistic for

CY 2025, supported by steady investor confidence and evolving consumer preferences. While the office and residential markets are expected to enter a cycle of stabilisation after a phase of high growth, the warehousing and industrial segments will continue to expand alongside the growth of Indias manufacturing and logistics developments. Emerging asset classes such as co-living spaces, senior housing and data centres are gaining traction, reflecting changing demographics and lifestyle preferences. Additionally, Tier-II and Tier-III cities are becoming key growth hubs, supported by infrastructure development and cost advantages. Regulatory reforms, such as the launch of Small and Medium REITs (SM-REITs) and the strengthening of the Real Estate Regulatory Authority (RERA), are likely to increase market transparency and facilitate greater retail participation in the sector. Lastly, the convergence of technology and sustainability is reshaping the landscape. The rise of green-rated properties and digitally integrated developments is setting new benchmarks for future-ready real estate in India.

Company Overview

Incorporated in 1991, PVP Ventures Limited has core business interests with a legacy realty asset and the future in healthcare services. Over the years, the Company has built a reputation for strategic investments and value-driven growth across its focus sectors.