Private Sector is also involved in developing health infrastructure in India on a large scale

Example - There are many privately run hospitals, clinics, nursing homes across India

Private Sector and Public Sector - Teachoo.JPG

Important Points

More than 70% of Hospitals run by Private Sector

2/5 of Hospital beds are in Private Sector

80% of Outpatients (OPD) are managed by Private Sector

46% of Inpatients are managed in Private Sector

Private Sector are actively involved in Education and Training of Medicine Professionals, Medical Research, Sale of Pharmaceuticals etc

Many super speciality hospitals have been developed in India after liberalisation.

These provide Medical tourism to India


What is Medical Tourism?

Many people from outside country are coming into India for their medical treatment

This is called Medical Tourism


India has latest medical technologies and trained doctors

Cost is much less as compared to developed counteies like USA


Benefits to India

It leads to increase in foreign exchange for India

Around 2 lakhs foreigners visited India for Medical treatment

India is expected to earn around Rs500 billion through medical tourism

Example 1 -Medical Tourism - Teachoo.JPG


Example 2 -Medical Tourism - Teachoo.JPG

What is Medical Tourism - Teachoo.JPG



Other Books


India has emerged as a hotspot for medical tourism'.

Defend the statement with vaild arguments.

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Discuss the role of private sector in providing health services in India.

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  1. Class 12 NCERT
  2. Indian Economic Development


Private SectorPrivate Sector Health Infrastructure Private Hospitals Private Clinics Health Infrastructure They run Private Run hospitals clinics, Nursing Homes Present Mostly in Cities They cover 70% of hospitals 2/5 of Hospital beds 80% of OPD 46% of Inpatient They provide Medical Tourism Public Sector Health Infrastructure AIIMS PHC They run Govt run hospitals and health Centers Present in both Cities and Villages They cover 30% of hospitals 3/5 of Hospital beds 20% of OPD 54% of Inpatient They normally treat Indian Patients Example 1 -Medical Tourism USA Patient to undergo Surgery Cost in USA Cost in India $ 10000 Rs 150000 ($ 2000) + $1000 Travelling Cost This is Expensive This is Cheaper Example 2 -Medical Tourism Afghanistan Patient to undergo Surgery Treatment in Afghanistan Treatment in India Not Available (Lack of latest equipment) (Not many Qualified Doctors) Available Reasonable Rates Good Medical Infrastructure This is not an option So Afghan Patient comes to India for treatment What is Medical Tourism Many foreign patients are coming to India for medical treatment This is called Medical Tourism Foreign Patient Treatment Indian Hospital Benefits Savings in Cost Qualified Doctors Good Health Infrastructure Benefits Increase in Revenue of Hospitals Increase in Foreign Exchange to India Boost Local Economy (Stay and Travel Cost of Tourism and Attendant)

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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.