Linkage between Health Expenditure and Foreign Direct Investment in India

In fact, India is a population-driven country that needs to focus on population. Their better livelihood, sanitation, and health can make a nation strong in a mass human capital. Nowadays, India needs more investment in the healthcare sector so that it can have a better health infrastructure. By which India can have the fastest health recovery rate. FDI is the master key for any emerging nation to generate employment and raise productivity. Materials and Methods: To analyse the study of the Linkage between Health Expenditure and Foreign Direct Investment in India from 2000 to 2018, this paper has considered a fully descriptive model using the secondary data collected from various government sources like the World Bank database and IMF database. Results: Since January 2000, FDI has been permitted up to 100 per cent under the automatic route in hospitals in India. Regarding challenges faced by this sector, it is found that there are external and domestic factors, which challenge foreign investment, especially Foreign Direct Investment in India’s hospital segment. Conclusion: FDI has the potential to generate employment, raise productivity, and enhance the competitiveness of the domestic economy through the transfer of skills and technology-enhanced exports and contribution to the long-term economic development of the nations.