With the expected increase in the pharmaceutical market, the total healthcare market could rise from Rs 1,030 billion ($22.2 billion) currently (5.2 percent of GDP) to Rs 2,320 billion ($50 billion)-Rs 3,200 billion ($69 billion) (6.2-8.5 percent of GDP) by 2012
Foreign Direct Investment is permitted upto 100 % for manufacture of drugs and pharmaceuticals provided the activity does not attract compulsory licensing or involve use of recombinant DNA technology and specific cell/tissue targeted formulations.
Foreign Direct Investmentproposals for the manufacture of licensable drugs and pharmaceuticals and bulk drugs produced by recombinant DNA technology and specific cell/tissue targeted formulations will require prior Govt. approval.100% foreign investment is allowed in both manufacture of pollution control equipment and consultancy for integration of pollution control systems is permitted on the automatic route
Government vide its official Gazette dated 23 September 2005 has removed licensing requirements for Drugs & Pharmaceuticals sector.
FDI in hospitals is allowed upto 100%. In India this sector provides good opportunities and growth. Number of multi-specialty hospitals and healthcare centers are doing well and more are being established.