*Image source: National Investment Promotion and Facilitation Agency of India

In recent years, increased investment and expenditure from public as well as private investors have contributed to the rapid growth of the healthcare sector in India. The emergence of reputed global players investing through Foreign Direct Investment (FDI) played a pivotal role in the growth of the healthcare sector.

The IBEF predicts that the rise in investment in healthcare infrastructure is set to benefit both ‘hard’ (hospitals) and ‘soft’ (R&D, education) infrastructure and the hospital industry in India is expected to grow CAGR of 16-17% to reach $132.84 billion by 2022. The Government of India aims to increase healthcare spending to 3% of the Gross Domestic Product (GDP) by 2022. Meanwhile, hospital and diagnostic centres in India attracted FDI worth $5.25 billion between April 2000 and June 2018, according to data released by the Department of Industrial Policy and Promotion (DIPP).

According to Export.gov, both the Indian government and the private sector are planning several new specialty and super-specialty hospital facilities, as well as modernisation of existing hospitals. India currently faces a chronic shortage of healthcare infrastructure, especially in rural areas and Tier II and Tier III cities, and it is expected that India will have a potential requirement of 1.75 million new beds by the end of 2025. The hospital services market, which represents one of the most important segments of the Indian healthcare industry, is currently valued at $80 billion and accounts for 71% of the industry revenues.

Invest India, the National Investment Promotion and Facilitation Agency of India highlights some of the upcoming hospital projects in the country:

• $243.74 million setting up of a 500-bed multi-speciality hospital in Dharamshala
• $139.28 medical equipment manufacturing project in West Sikkim
• $96.52 million super-speciality hospital project in Mumbai
• $87.75 million medical centre project in Guwahati

Invest India also outlines some of the latest FDI projects in India:

• Japanese venture capital firm SBI Investment has invested $ 17.2 million in Bengaluru-based health-tech AI startup mfine. mfine will use the funds to expand its hospital network across the country and build its AI technology
• Amway India to invest up to $4.17 million to ramp up its digital platform
• World Bank extends help to develop 7,500 health centres in Andhra Pradesh
• Aster DM group plans to invest $59.6 million in Chennai to launch a 500-bed multi-speciality hospital
• Metropolis Healthcare plans to add 800 centres and ten labs by the end of 2019