The health care sector is expected to witness an annual revenue growth of 12-14 per cent over the next five years due increasing medical tourism and higher health insurance penetration. India has seen an increase in inflow of international patients, mostly from developing countries in South Asia, Africa and the Middle East. Most commonly availed treatments by foreign patients visiting India are complex and high value procedures. For the large hospital chains the revenue from international patients has grown at the rate of more than 20 per cent over the last three years. India has significant cost advantages in medical tourism as treatments here can be done at 60-90 per cent of the cost of such procedures in the US. On the supply side, India currently faces a significant shortage of beds and limited government investments. This provides private sector players with an opportunity to step in to fill the gap.

(Economic Times)