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Foreign Investment in Hospital Sector in India

Shailender Hooda

Foreign Trade Review, 2017, vol. 52, issue 4, 247-264

Abstract: This study examines the status and trends of foreign investment inflow in Indian hospital sector and highlights emerging issues. During the liberalized foreign investment regime between 2000 and 2014, a large number of foreign players have been focusing on Indian hospital sector and have enlarged their presence through partnership and investment in joint venture projects. Though foreign investment inflow in hospitals has increased to almost hundred times, it constitutes a small share within total financing of health care. It is the long-term domestic borrowing that predominates. The overall growth in foreign investment has largely been for providing super-speciality and tertiary care services particularly in the metropolitan cities, while investment for primary and secondary cares, clinical research, drugs development, diagnostic services and rural area remained negligible. The study argues that the private investment can play a complementary role in providing tertiary and speciality care services particularly in the untapped hospital market and it should not be considered as the substitute of public provisioning of health care services. The role of the government is warranted to provide cost-effective cares to general population across remotest area of the country.

Keywords: FDI; foreign investment; hospital sector; corporate hospital; regional imbalance; India (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:fortra:v:52:y:2017:i:4:p:247-264

DOI: 10.1177/0015732516681874

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