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New Delhi, February 18, 2026
In a definitive move to safeguard the sovereignty and non-profit nature of medical training, the Union Government has reaffirmed that foreign entities are prohibited from establishing or operating medical colleges in India. Union Health Minister Anupriya Patel clarified in a parliamentary session this week that under the National Medical Commission (NMC) 2023 regulations, eligibility is strictly limited to domestic government bodies and Indian not-for-profit organizations.
The announcement addresses growing speculation regarding the liberalization of the medical education sector following the 100% Foreign Direct Investment (FDI) allowed in hospital infrastructure. The Minister emphasized that while India seeks to expand its healthcare capacity, the “comprehensive framework” of the NMC ensures that medical education remains a service-oriented mission rather than a commercial venture for international corporations.
The Regulatory Fortress: Why Foreign Entities are Excluded
The shift from the old Medical Council of India (MCI) to the National Medical Commission has brought about more stringent oversight through the Establishment of New Medical Institutions Regulations, 2023.
Under these rules, the Medical Assessment and Rating Board (MARB) only accepts applications from specific categories:
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The Central or State Governments and Union Territory administrations.
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Autonomous bodies promoted by the Government.
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Societies registered under the Societies Registration Act, 1860.
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Companies registered under Section 8 of the Companies Act, 2013 (which mandates a non-profit structure).
A key hurdle for foreign players is the requirement for the applicant to demonstrate absolute ownership of the land and a pre-existing establishment within India. Because foreign companies are not listed as eligible “persons” or “entities” under the 2023 guidelines, they are effectively locked out of the primary ownership of the 100,000+ MBBS seats currently available in the country.
Bridging the Gap: The Doctor Shortage vs. Quality Control
India’s medical landscape is currently a study in contrasts. While the country has seen a massive surge in domestic seats—adding over 46,000 MBBS spots in recent years—demand still outstrips supply. This gap drives approximately 80,000 students annually to seek degrees abroad.
However, the quality of foreign education remains a point of contention. Data indicates that the pass rate for the Foreign Medical Graduate Examination (FMGE)—the mandatory licensure test for those returning to India—often hovers around 25%. By restricting college ownership to domestic entities, the NMC aims to standardize the “Minimum Standards Requirements” (MSRs) for faculty and infrastructure, preventing the “dilution of training” that critics fear could follow a profit-driven foreign model.
Expert Perspectives: Protectionism or Prudence?
The medical community remains divided on whether this exclusion helps or hinders the system.
Dr. R.V. Asokan, former President of the Indian Medical Association (IMA), strongly supports the government’s stance. “Restricting medical education to not-for-profit entities ensures that training prioritizes clinical service over commerce,” Dr. Asokan stated. “In a diverse nation where healthcare must be equitable, we cannot treat medical seats as a tradable commodity for global investors.”
Conversely, some educationists suggest a middle ground. Dr. Devi Shetty, renowned cardiac surgeon and founder of Narayana Health, has previously advocated for more flexible models. “While maintaining control is essential, collaborative ‘twinning programs’ with prestigious foreign universities could elevate our standards,” he noted. “We can import global best practices and technology without necessarily transferring ownership of our institutions.”
The Impact on Patients and Hospital Costs
For the average citizen, the “attached hospital” is the most visible part of this policy. Under Indian law, every medical college must have a teaching hospital. These institutions serve as vital safety nets, with over 70% of beds in government-run colleges providing free or highly subsidized care.
Minister Patel’s clarification also touched on the sensitive issue of hospital charges. Because “Health” is a State List subject under the Indian Constitution, the Central Government does not cap fees for private hospitals or those attached to colleges. Instead, it relies on the Clinical Establishments (Registration and Regulation) Act, 2010.
What This Means for You:
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Transparency: States that have adopted the Clinical Establishments Act (currently 11 states and all UTs) mandate that hospitals display their rates prominently.
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Price Stabilization: By keeping foreign “for-profit” entities out of medical education, the government hopes to prevent a “fee spiral” that would eventually be passed down to patients in the form of higher consultation and surgery costs.
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Quality Assurance: Patients treated at teaching hospitals benefit from a framework where faculty must meet strict NMC benchmarks, regardless of the hospital’s private or public status.
Limitations and the Road Ahead
Despite the strict rules, the NMC faces significant challenges. The MARB rejects hundreds of applications annually for failing to meet faculty or infrastructure requirements. Furthermore, while the National Education Policy (NEP) 2020 encourages foreign universities to set up campuses in India for other sectors, medicine remains the “protected exception.”
Critics of the current policy argue that the 1:834 doctor-to-population ratio (though better than the WHO’s 1:1000 recommendation when including traditional medicine practitioners) still masks deep rural-urban divides. They argue that well-regulated foreign investment could quickly add the 50,000 seats needed to end the “brain drain” of Indian students to countries like Russia, China, or the Philippines.
As India moves toward its goal of significant reform in higher education, the focus remains on “Self-Reliant India” (Atmanirbhar Bharat). For now, the message from New Delhi is clear: The future of India’s doctors will be forged in Indian-owned institutions.
Medical Disclaimer: This article is for informational purposes only and should not be considered medical advice. Always consult with qualified healthcare professionals before making any health-related decisions or changes to your treatment plan. The information presented here is based on current research and expert opinions, which may evolve as new evidence emerges.
References
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Saha, Adity. “Foreign participation in medical education: Centre cites NMC norms, says hospital charges are state subject.” Medical Dialogues, February 16, 2026.
