Hospital and Diagnostic Centers


FDI Inflows to Hospital and Diagnostic Centers

FDI Inflows to Hospital and Diagnostic Centers are a recent phenomenon. The development of the healthcare services has led to India becoming one of the medical hubs in the world and it has the potential for medical tourism.

FDI Inflows to Hospital and Diagnostic Centers-Overview


The FDI Inflows to Hospital and Diagnostic Centers has been happening for the past few years. The Hospital and Diagnostic Centers come under the healthcare industry. With the introduction of the open market economy, the healthcare industry was transformed. Presently the industry is highly developed and technologically advanced, and capable of attracting foreign players.

With all these developments the Hospital and Diagnostic Centers are expected to influence foreign direct investments of huge amounts. The advantage India has is that the costs of the medical treatments are much lower than other developed countries. It is nearly a tenth of the cost incurred in the western countries. The Central Government has initiated the process of exchange of doctors between different countries and joint research projects pertaining to healthcare. This would further help the FDI Inflows to Hospital and Diagnostic Centers.

FDI Inflows to Healthcare-Facts


The Indian healthcare industry is expected to grow to Rs 270,000 crores by the year 2012. In order to cater to this growth, both the industry and the central government has to take initiatives to increase investments, employments of skilled personnel in the healthcare sector. This in turn will enhance the quality of the healthcare services without increasing the price and enhance the socio-economic progress of the economy.

The healthcare industry is supported by sectors like the pharmaceuticals, biotechnology, medical instrumentation, etc. The Central government has provided these sectors with growth oriented policies. The Pharma and the bio technology sectors, presently are experiencing huge amount of FDI inflow for contract research and manufacturing.

In near future, India has the potential for medical tourism, as the cost of treatment in India is much lower than other developed countries. It is expected that the healthcare industry would earn revenues worth US$ 2.2 billion by the year 2012.

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