To promote investments, India has simplified the policies of FDI in its healthcare sector. 100% FDI in healthcare industry has been permitted under the automatic route for investing in developing hospitals and healthcare centers. Likewise, 100% FDI under automatic routes is allowed in the manufacturing of medical devices.
The healthcare infrastructure of India is set for massive growth.
With the rise in disposable income amongst Indian households, the demand for quality healthcare increased too. Moreover, the current healthcare infrastructure of India is underdeveloped and marked by a visible gap in demand and supply. This fuels further growth.
Recent Developments in the Healthcare FDI Scene
Besides, health tech, clinical research, online pharma commerce, etc., are sunrise sectors too and will continue to feather on the radar of investors. With simplified policies of the FDI in the healthcare industry, other structural reform schemes are introduced in order to incentivize investments in healthcare centers. There are attractive holidays regarding taxes for healthcare players, especially in small towns and remote areas. There is also a provision for an income tax waiver of 15 years for domestically manufactured medical technology. There are also attractive PL schemes in the device manufacturing and pharma sector.
- Becoming Resilient in Device Manufacturing
The major aim of India is to become self-reliant in manufacturing medical devices. In FY20, the total device manufacturing market in India was sized at around USD 11 billion. By 2025, the industry is expected to grow fivefold to USD 49.5 billion.
Apart from a few manufacturers, such as GE Healthcare, Philips, Siemens, etc., the market is mostly dependent on imports. However, there is a huge need for incentivizing domestic production.
Due to expensive devices, a lot of the time, pathology centers in remote or rural areas are not able to afford therefore, undermining overall healthcare services. Elevated indigenous capabilities of manufacturing can help in making diagnostic services affordable to average Indians.
In order to develop its domestic capacity, the Government of India has announced a USD 466 million 5-year PLI scheme, starting from FY21.
- Investment Research Services
The Indian healthcare industry has a lot of potential and is backed by strong fundamental growth factors. However, it’s also really complex and multifaceted. Therefore, investors would need access to actionable insights and data. This is where market research agencies come into the scene.
- FDI in Healthcare
FDI India is involved in the growth of various medical sector departments by bringing in FDI in healthcare in areas such as Health insurance, Hospitals and Infrastructure, Technology driven services, Medical tourism, Telemedicine, and Luxury Offerings.
Our financial specialists offer assistance to businesses by providing soft loans from foreign investors. We can help get your FDI approved seamlessly through government regulations.
We offer end-to-end financial support by conducting thorough market research and analysis to connect you with the right overseas investors and help build your business bigger. As investments will increase in different categories of the healthcare industry, there is a rising need for tailor-made research and market insights.