The Union government has clarified that the setting up of new medical colleges in India is strictly governed by the Existing Courses and Assessment and Rating Regulations, 2023 notified by the National Medical Commission (NMC), and only entities specified under these rules are eligible to apply.
Replying to questions in the Lok Sabha on “Foreign Participation in Medical Education,” Union Minister of State for Health and Family Welfare Anupriya Patel said the 2023 regulations lay down a detailed framework for establishing new medical institutions. The norms define eligible categories of applicants, eligibility conditions, documentation requirements, assessment and rating procedures, and penalties for non-compliance.
The clarification came in response to queries on whether the government plans to allow — or has already allowed foreign companies or foreign institutions to establish or operate medical colleges and their attached hospitals in India. The questions also sought details of the policy framework, regulatory approvals, possible impact on medical education standards, and concerns over treatment costs in hospitals linked to such institutions.
According to the Minister, under the NMC regulations, only the following entities are eligible to establish new medical institutions:
- The Central Government
- State Government(s), individually or in partnership
- Union Territories
- Universities duly established in India
- Autonomous bodies set up by the Centre or State through statute, without conflict of objectives in medical education
- Registered societies under the Societies Registration Act, 1860, or corresponding State laws
The Minister further clarified that healthcare pricing falls largely under the jurisdiction of States. Citing the Seventh Schedule of the Constitution, she noted that “Health” is a State subject, and it is the responsibility of respective State and Union Territory governments to monitor and act against excessive charges by private hospitals.
At the central level, the government has enacted the Clinical Establishments (Registration and Regulation) Act, 2010 to provide a regulatory framework for clinical establishments. However, its implementation rests with States and Union Territories that have adopted the Act. These governments are responsible for ensuring that hospitals including private institutions adhere to prescribed standards and maintain affordable, quality healthcare services.
The response underscores that while medical education is regulated nationally through the NMC, oversight of hospital charges remains primarily with State authorities.
