NITI Aayog Releases “Investment Opportunities in India’s Healthcare Sector” report

What is the News?

NITI Aayog released a report titled, ‘Investment Opportunities in India’s Healthcare Sector’.

Purpose of the Investment Opportunities in India’s Healthcare Sector Report:

• The report outlines the range of investment opportunities in various segments of India’s healthcare sector. This includes hospitals, medical devices and equipment, health insurance, telemedicine, home healthcare, and medical value travel.

India’s Healthcare Industry:

• Firstly, Healthcare Sector Growth Rate: India’s healthcare industry is growing at a Compound Annual Growth Rate (CAGR) of around 22% since 2016. At this rate, it is expected to reach USD 372 Billion in 2022.
• Secondly, Employment: In 2015, the healthcare sector became the fifth-largest employer. It employed around 4.7 million people directly.
  • As per estimates of the National Skill Development Corporation (NSDC), healthcare can generate 2.7 Million additional jobs in India between 2017-22.
• Thirdly, India’s FDI Regime for Healthcare Sector: India’s Foreign Direct Investment(FDI) regime in the Health Sector has been liberalised extensively.
  • Currently, FDI is permitted up to 100% under the automatic route for the hospital sector and manufacture of medical devices.
    Automatic route: The non-resident investor or Indian company does not require prior approval from the Government of India for the investment.
  • Further, in the pharmaceutical sector, FDI is permitted up to 100% in greenfield projects. For the brownfield projects, it is up to 74% under the automatic route.
• Fourthly, FDI Inflows: India’s FDI in the Healthcare Sector has increased considerably over the last few years. The FDI has increased from USD 94 Million (2011) to USD 1,275 Million (2016), This is a jump of over 13.5 times.

Source: PIB