Consultancy firm KPMG said that country's healthcare industry will further boost to touch $14.2 billion mark by 2012 given to growing income level and growing standard of living in the country.

Country's domestic healthcare market was about $9 billion in 2006 according to Pradip Kanakia, head of markets and healthcare services.

He said, "While the Indian healthcare system has grown manifold over the past few years. It has not yet been able to keep pace with the rapid rise in the population."

Mr. Kanakia said that India, undergoing rapid economic reforms, still lags behind many countries in the healthcare segment and it has 0.7 beds for every 1000 people against the global average of beds per 1,000. However, emerging sectors such as diagnostic chains and medical equipment manufacturing may propel the growth across the segment.

KPMG study estimates a growth rate of 5.8 percent for medical industry in 2009. Country would witness higher spending in healthcare business with Maharashtra expected to be the highest spender in the country during the period between 2009 and 2013.

Ameeta Chatterjee, director - corporate finance, KPMG, said, "There has been an increasing awareness of private sector involvement in meeting the requirement of the country's health services requirement."