Introduction of Special Economic Zones is a great leap of Indian Government towards,
encouraging foreign investments. SEZs, which provide foreign investors with an environment
comprising high-tech facilities for processing and extensive economic liberties,
are considered engines for economic growth.
Central Government has charted special policies and flexible measures allowing SEZs
to employ special economic management systems. SEZs, are exempted from income tax,
customs duty, excise, VAT and service tax, enjoy wide fiscal benefits.
As per the Government rules, an SEZ must have an infrastructure of international
standards providing high-quality amenities such as world-class office buildings,
roads, educational institutes and residential and commercial complexes.
India spends US $ 22 billion or 5.2% of its GDP on Healthcare and is expected
to touch US $ 47 billion by 2012. It has the potential to generate 8 million jobs by 2012
and can contribute 7% to 8% of the GDP. The Medical Tourism Market in India is
currently estimated at US$ 333 Million and is broadly defined as 'cost-effective' private
medical care in collaboration with the tourism Industry for overseas patients needing
specialized treatment. A CII-Mckinsey study shows that at its current pace of growth,
healthcare tourism can rake in US$ 2 billion as additional revenue by 2012.
The Private Healthcare sector, said to be responsible for more than 80% of healthcare
delivery in India, has invested heavily in setting up state-of-the-art Tertiary Care
Institutes offering both general and special services. This is at one-tenth the cost to
patient, with clinical outcomes comparable to many developed countries. India is already
the medical hub for the SAARC countries, and also treats patients from the Middle East
and many developed countries. India's holistic medicine facilities have always attracted
foreign patients, and this inflow has increased in the last five years with better tourist
packages.
In the last year we had around 1,50,000 foreign patients coming in for treatment in
a few major specialty areas. Constraints such as high costs and long waiting lists for
treatment or surgery have prompted people from the West to look for effective options.
India has had patients coming for treatment from US, UK, Europe, SAARC, UAE countries etc
India is pitted against Thailand, Philippines, Singapore and some other Asian countries,
which have good hospitals, a salubrious climate and tourist destinations. Thailand and
Singapore with their advanced medical facilities and established medical tourism options
have drawn hundred of thousands of foreign patients every year. India has lagged behind,
but things are changing rapidly, especially because of the high quality of medical
expertise backed by fast improving equipment and nursing facilities.
The National Medical Policy of 2002 strongly encourages the providing of such health
services on a payment basis to service seekers from overseas to capitalize on the
comparative cost advantage enjoyed by domestic health facilities in the secondary and
tertiary sector. The providers of such services to patients from overseas should be
encouraged by extending to their earnings in foreign exchange, all fiscal incentives,
including the status of "deemed exports", which are available to other exporters of
goods and services.
The biggest driver, however, is cost. For less than a third of the cost in the West,
a patient can travel to India, get operated, visit well-known tourist destinations and
return to his or her country.
India's medical prowess and improving healthcare facilities in leading government,
missionary and private hospitals has attracted worldwide attention. Doctors trained first
in these institutions and then abroad have accelerated the process.
A CII-McKinsey study estimates that medical value travel can grow to Rs. 1000 crore
(£1.21 bn) by 2012. In 2004, some 150,000 foreigners visited India for treatment, with
the number rising by 15 percent a year.. Another trend is to combine surgery in India
with a yoga holiday or trip to the Taj Mahal. The potential is enormous: India can
welcome over a million medical tourists annually who will bring in an estimated $5
billion.
