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Government Policies and Booming Economy Keep Indian Healthcare in Top Shape

With the demand for healthcare services set to more than double in the next five to ten years, the Indian healthcare industry appears ripe for investment. A robust economic reform process and inflated healthcare budgets have attracted big ticket foreign investments in several sectors, such as pharmaceuticals, biotechnology, clinical trials, medical devices and equipment, healthcare services, insurance, and outsourcing.

New Country Industry Forecasts from the Frost & Sullivan Economic Research and Analytics team addressing the Indian Healthcare Industry reveals that opportunities exist in the pharmaceutical and medical tourism sectors of the industry.

India's recognition of pharmaceutical product patents and establishment of new regulatory bodies will likely draw more foreign investors seeking outsourcing opportunities in the country. Additionally, the creation of a suitable infrastructure coupled with an increase in healthcare as well as drug and pharmaceutical R&D expenditures will attract new drug development projects.

"The government is not sparing any efforts to promote India as a hot destination for medical tourism," says Frost & Sullivan Research Analyst Konda Reddy. "It has increased the budget outlay toward the development of medical tourism centers across the country."

By increasing public healthcare expenditures to 2.0 percent of the gross domestic product (GDP) by 2010, as stated in the National Health Policy, the government will help to increase the number of healthcare centers in remote areas and improve essential healthcare supplies.

The government continues to work toward delivering effective and affordable healthcare services to the population's vulnerable sections residing in rural areas through its common minimum program and national rural health mission.

India also looks to modernize its healthcare system through greater collaboration with the healthcare industry.
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