The Indian healthcare industry is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.
India's competitive advantage in the health care sector lies in its large pool of well-trained medical professionals. India is also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe.
The healthcare market can increase three fold to Rs 8.6 trillion (US$ 133.44 billion) by 2022. India is experiencing 22-25 per cent growth in medical tourism and the industry is expected to double its size from present US$ 3 billion to US$ 6 billion by next year.
The government’s expenditure on the health sector has grown to 1.4 per cent in FY18 from 1.2 per cent in FY14. The Government of India is planning to increase public health spending to 2.5 per cent of the country's GDP by 2025.
The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 6 billion between April 2000 and December 2018, according to data released by the Department of Industrial Policy and Promotion (DIPP). Healthcare sector in India witnessed 23 deals worth US$ 679 million in H12018.The hospital industry in India is forecasted to increase to Rs 8.6 trillion (US$ 132.84 billion) by FY22 from Rs 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16-17 per cent.