Volume : III, Issue : I, January - 2013

An Analytical Study of Foreign Direct Investment in Indian Health care sectors

Dr. R. Sarvamangala

Abstract :

India is one of the most lucrative healthcare markets globally and in terms of revenue and employment, it is one of the largest sectors. Delivering affordable health care to Indias billion–plus population itself presents enormous challenges and signifies enormous opportunities for the medical community and other service providers. Backed by several growth drivers including the prevalence of various diseases, untapped market, increasing urbanization, rising life expectancy, and active private sector participation are some of the leading factors supporting the industry’s growth. Multinational players have consistently been focusing on the Indian healthcare market landscape and trying to enlarge their presence through partnerships and investments. Private equity funds have already invested US$ 2.53 Billion in 216 healthcare deals since 2005 in India. The FDI inflows will further escalate in near future on the back of factors, such as entry of foreign players and liberal regulatory regime. The Indian hospital industry was estimated to be worth about USD 44 billion as of 2010 and is predicted to be worth around USD 280 billion by 2020. Further, the Indian hospital service industry is projected to grow at a compounded annual growth rate of more than 9%. It is undergoing metamorphosis by oadening focus of the services by using technology, deliverables and newer applications. The hospitals that were confined to a specified area with limited infrastructure and services are now expanding mainly due to the foreign investment being received by the sector. The Indian Healthcare sector is emerging as one of the fast–growing service sectors in India, contributing 6% to the country’s growth domestic product (GDP)

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. R. Sarvamangala An Analytical Study of Foreign Direct Investment in Indian Health care sectors Indian Journal of Applied Research, Vol.III, Issue.I January 2013

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