FDI in Indian Hospitals, Diagnostics Grows 4% in FY25, Q4 Dips Sharply

This marks a significant slowdown from the 89 percent growth recorded in FY24.

The foreign direct investment (FDI) equity inflow into India’s hospitals and diagnostic centres grew by nearly 4 percent in FY25, reaching $1.59 billion compared to $1.53 billion in the previous fiscal.

However, this marks a significant slowdown from the 89 percent growth recorded in FY24.

In Rupee terms, the sector saw a 3.3 percent growth to INR 13,110.58 crore during FY25, up from INR 12,695.77 crore last year.

Cumulatively, the industry has attracted $11.82 billion in foreign equity since April 2000, which equals INR 82,348.30 crore.

The fourth quarter of FY25 registered a steep decline of nearly 70 per cent in FDI inflows compared to the same period in FY24. The sector received $136 million from January to March 2025, down from $446.39 million a year earlier. In Rupee terms, this translates to INR 1,177.97 crore in Q4 FY25, compared to INR 3,708.66 crore in Q4 FY24 — a drop of nearly 68 per cent.

Meanwhile, the medical and surgical appliances sector recorded a 30 percent annual growth in foreign equity inflow in FY25, with funding rising to $627 million from $483 million in FY24. This is higher than the 21.6 percent growth reported in FY24 over FY23.

In Rupee terms, the sector witnessed a 32 percent growth at INR 5,253.14 crore in FY25, compared to ₹3,978.21 crore in FY24. However, the fourth quarter saw a 60 percent dip in FDI inflow to just $8 million, from $20 million in the same quarter last year.

In Rupee terms, the decline was over 58 percent, from INR 169.41 crore to INR 70.52 crore.

Furthermore, the cumulative FDI into the medical and surgical appliances segment stood at $3.91 billion or INR 27,458.82 crore from April 2000 to March 2025.

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