Released on = February 13, 2007, 12:18 am

Press Release Author = Shushmul Maheshwari

Industry = Healthcare

Press Release Summary = Indian Government shows its willingness to put more money in
the country's healthcare sector, so that the underprivileged can also take advantage
of better healthcare services

Press Release Body = India plans to raise healthcare sector allocation from a meager
0.9% of GDP (Gross Domestic Product) to somewhere around 2-3%, Ashwini Kumar,
Minister of State said this on 15 January 2007, as per the reports published on
FICCI's website.

Expressing his views before the participants at 'Global Healthcare Conference -
Promoting Partnerships' he said that despite the country making significant
advancements in various fields, there are some basic healthcare needs of those
underprivileged that ought to be addressed.

Government has not shown serious concern towards improving healthcare services in
the country in the past. This can be seen by the very fact that just 0.9% GDP was
allocated to public health till last year (2006). However now the government is
willing to increase it up to 3%. Mr. Kumar agreed that medical insurance would help
improve healthcare services and the govt. would look at steps required for the
promotion of this.

Mr. Naresh Dayal, Secretary for the Indian Government's Ministry of Health & Family
Welfare, while addressing the members at the conference appraised government's
efforts to launch 6 new institutions on AIIMS' pattern. According to him such
institutions will serve as both premier medical research & education institutions.
At the same time, such institutions will provide superior tertiary healthcare,
especially to the poorer people.

He outlined the development of PPP (Public Private Partnerships) to be a real
challenge at present. PPP would help in improving access and reducing costs of
individual treatment for chronic illnesses, said he.

According to the views of a senior research analyst at RNCOS, "In India, 80% of the
healthcare expenditure is borne by the patients and that borne by the state is 12%.
The expenditure covered by insurance claims is 3%. As a result, the price
sensitivity is quite high and the high-level healthcare facilities are not in the
reach of patients."

The analyst along with other team members has worked hard to put together RNCOS'
much awaited report on "Opportunities in Indian Healthcare Sector". The research
report also addresses the issues and the facts that are critical to business
success, such as:

- What are the challenges before the Indian Healthcare Industry?
- What opportunities exist for the Healthcare Market in India?
- How is the market affected by the other factors prevalent in the economy?

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit: http://www.rncos.com/Report/IM054.htm
Current Industry News: http://www.rncos.com/blog


Web Site = http://www.rncos.com

Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92
91-11-4214-1229
info@rncos.com