Vol: 3, Issue: 2 2013

Page: 29-37

Foreign Direct Investment in Hospital Industry: A Review

Naresh Vashist, Puneet Jain

Received Date: 2013-03-04

Accepted Date: 2013-04-04

Published Date: 2013-05-04

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.

References

• Salmon J. (ed) (1990), The Corporate Transformation of Health Care Issue and Directions, Baywood Pulications, Amityville.
• Barnett,J.R., and Brown, L.J.(2006), “Getting into hospitals in a big way the corporate transformation of hospital care in Australia” Environment and Planning D: Society and Space,24,2,pp.283-310.
• Baru R.V. (1998), Private Healthcare in India Social Characteristics and Trends, Sage, New Delhi.
• Public Account Committee (2005), Allotment of Land to Private Hospitals and Dispensaries by Delhi Development Authority, Lok Sabha, Government of India, New Delhi.
• Northbridge Capital, Hospital Scetor Research, November 2010, available at http://northbridgeasia.com/ResearchReports/HOSPITAL%20RESEARCH%20REPORT%20 (1)%20(1).pdf, last visited on December 27, 2010. http://myiris.com/shares/research/firstcall/HEALTHCA_20100424.pdf
• The Venture Intelligence survey of leading PE and VC playersFDI Statistics, Department of Induatrial Promotion & Policy, Government of India availableat http://dipp.dxnic.in/fdi_statistics/india_FDI_April2011.pdf last visited December 31, 2010.
• Public–Private Partnerships: Managing contracting arrangements to strengthen theReproductive and Child Health Programme in India, A WHO-IIMA report, 2007 Chakravarti, I. (2009), Draft National Health Bill: Health Reforms for market not for People, Liberation (retrieved fromwww.cpiml.org/liberation/year_2009/dec_09/feature.html).
• Crisil Research (2009), Independent Equity Research- Apollo Hospital Enterprise PvtLtd, (retrieved from www.apollohospitals.com).
• ILO, (2009), Indian Health Sector, Industry Report (retrieved from www.indialawoffices.com/industry_reports.php).
• Joshi, C.,Choudhary, R., Suman, B., Deka N., „Health System in India: Crisis &Alternatives, First Edition: October 2006,pp.24,30-31.
• Newbrander, W. (1997). Private Health Sector Growth in Asia : Issues and Implications.Canada: John Wiley & Sons Inc.
• Balakrishna, P. (2007, July 12). In the pink of health. Retrieved August 21, 2008, from Business standard: http://www.business-standard.com/india/storypage.php?autono=290789
• Siddharth Dondhiyal, Private Equity Pulse on Healthcare & Life Sciences, July 2009,available at www.ventureintelligence.in.
• Consolidated FDI Policy, Government of India, Ministry of Commerce & Industry, Department of Industrial Policy & Promotion, SIA (FC Division), available at http://dipp.nic.in/English/Policies/FDI_Circular_02_2011.pdf .
• Itumalla R.; Acharyulu, G.V.R.K. Indian Healthcare and Foreign Direct Investment: Challenges & Opportunities. Asia Pacific Journal of Marketing & Management, 2012; 1(2).