Investing in India's Medical Education

3 Years agoIndia's medical education space has huge investment potential. Read on to know more about opportunities available.


  • In order to cater to healthcare needs of a population of 1.2 billion, India would need an additional 7 lakh doctors by 2022.
  • There exists tremendous scope for establishing new medical institutes for producing world class doctors, nurses and paramedics.
  • Private players are encouraged to set up medical institutions and the clause to permit medical colleges as commercial venture has been notified.
  • India is known for its high quality medical standards and a large number of Indian doctors are practising in other countries.
  • Medical tourism in the country is projected to grow upto USD 7-8 Billion by 2020 from the current USD 3 Billion.


  • Indian doctors are world renowned in their expertise and have high reputation in the US, Canada, Australia, New Zealand, UK and other European nations.
  • India has a demographic dividend in terms of a high share of young population.
  • Medicine as a profession commands tremendous respect in Indian society and a large number of youth aspire to become doctors, highlighting the tremendous demand for medical institutes.
  • There is an existing gap in number of doctors to cater to the healthcare needs of the country. The current doctor: patient ratio of 1:1681 is below the World Health Organisation (WHO)-recommended figure of 1:1000. Thus, India needs about 7 lakh doctors by 2022 in order to meet WHO standards. Number of Medical Colleges needs to be increased from the present 439 and the Government recognises the role of the private sector in this regard.
  • The regional distribution of medical colleges needs to be corrected. A large proportion of medical seats are currently being offered by institutes in the South of the country. However, there needs to be a substantial increase in number of medical seats in the East, North and North East.
  • India also has rich source of alternate health therapies like AYUSH (Ayurveda, Yoga, Unnani, Siddha & Homeopathy).
  • India is becoming a global hub for medical tourism due to high quality medical facilities at low cost. Medical tourism in the country is projected to grow upto USD 7-8 Billion by 2020 from the current USD 3 Billion.
  • Number of reformative measures have been undertaken in recent years:
    • NEET – A common entrance test for all medical colleges at UG and PG level
    • Online application & approval system for medical colleges
    • Private investment in medical education is fully allowed [Including 100% FDI]
    • Companies have been permitted to set up Medical Colleges as commercial venture.
  • PPP (Public Private Partnership) is also being encouraged.


  • Current doctor population ratio is 1:1681 against WHO norms of 1:1000
  • 9.59 lakh doctors registered as per Indian Medical Register
  • Total 439 Medical Colleges in the country out of which 212 in Government and 227 in private sector
  • Total 59,883 MBBS seats in which 30,790 in private sector
  • Total of 26,390 PG seats in the country


  • Ploughing back of profits
  • Loans on concessional basis
  • Single window clearance
  • Increased healthcare insurance cover


  • Feasibility to set up medical colleges in two pieces of land has been introduced
  • Norms/requirement for medical colleges are being rationalized to being down the cost of medical colleges.
  • Strict adherence to Indian Medical Council Act, 1956
  • Step by step guide as per the Establishment of Medical College Regulations, 1999
  • Medical colleges permitted to be set up in a phased manner. The requirements are indicated for a period of time (around five years) when the college attain recognition.
  • On the recommendation of MCI, final approval/disapproval granted by the Central Government
  • Time Schedule further monitored by the Hon’ble Supreme Court of India for application to admission in all UG/PG courses


  • Under PPP framework with any hospital of requisite capacity


  • Christian Medical College, Vellore
  • Father Mullers Institute of Medical Education and Research, Mangalore
  • Manipal Academy of Higher Education (Kasturba Medical College, Mangalore & Manipal)
  • St. Johns Medical College, Bangalore
  • Bharati Vidyapeeth Deemed University Medical College & Hospital, Sangli & Pune
  • Padmashree Dr. D.Y.Patil Medical College, Navi Mumbai & Pune
  • SRM University (SRM Medical College Hospital & Research Centre, Kancheepuram)
  • Sharda University, Greater Noida (School of Medical Sciences & Research, Greater Noida)