Vol: 3, Issue: 2 2013

Page: 29-37

Foreign Direct Investment in Hospital Industry: A Review

Naresh Vashist, Puneet Jain

Foreign direct investment (FDI) is a tool for economic growth through its strengthening of domestic capital, productivity and employment. FDI also plays a vital role in the up gradation of technology, skills and managerial capabilities in various sectors of the economy. Hospital Industry is one the fastest growing service sector in India. Given the growing importance of the health care sector and the significant development of trade in health services, foreign direct investment in this sector has gathered momentum in the recent years. Since January 2000, FDI is permitted up to 100 percent under the automatic route in hospitals in India. Therefore, there is growing interest among foreign players to enter India’s healthcare sector through capital investments, technology tie-ups, and collaborative ventures across various segments, including diagnostics, medical equipment, hospitals, and education and training. The results of this study provide the current status of FDI in Hospitals and diagnostic centers in healthcare sector.