Opportunities for FDI In Indian Healthcare Industry

The following sectors have significant opportunities for foreign investors:


With an ageing population and life expectancy to cross 70 years by 2022, there is a need for home-based healthcare devices. According to the United Nations, India’s population is set to touch 1.45 billion by 2028, making it the world’s most populous nation.

Health Insurance:

The percentage of the Indian population that has been covered under health insurance is unfortunately very insignificant. Lack of awareness and the casual approach is some of the reasons that have contributed to this. Though there is an increase in the number of healthcare insurance policies over the past few years majority of the population remains without any coverage.

Hospitals and Infrastructure:

There is a tremendous demand for tertiary care hospitals and speciality hospitals in India. There is a gap between the availability of the beds and required beds in the hospital in India.
The government private sector will play a role in bridging this gap.

Technology Driven Services:

Significantly low presence of physicians in rural and semi-urban areas has led to the limited access to proper healthcare facilities for the people living in these areas. Telemedicine is considered to be one of the solutions to this inaccessibility to healthcare services in rural and semi-urban areas. India’s medical technology sector is forecasted to reach US$ 9.60 billion by 2022.

Medical Tourism:

Another area of opportunity is medical tourism. India is getting popular worldwide in providing quality healthcare service at a lower cost and every year, about 1,00,000 patients from various countries come to India for availing treatment for various diseases. The revenue through medical tourism is expected to contribute significantly in the years to come due to cost advantage India has in delivering service.


It is a known fact the percentage of specialist physicians residing in rural India is very negligible. So, the innovative medical care providing facility called telemedicine may be used effectively to serve the 70% of the population who reside in rural India. Telemedicine market in India is expected to rise at a CAGR of 20 per cent during 2016-2020, reaching US$ 32 million by 2020.

Luxury Offering:

A new trend is emerging as luxury offerings in the healthcare sector. More than essential requirements, healthcare providers are making offerings of luxurious services. For example: pick and drop services for patients by private helicopters and luxurious arrangements for visitors to patients in hospitals.