India is trying to simplify procedures for foreign investors to invest in Indian hospitals and hotels, the tourism minister said on Tuesday, forecasting $6.5 billion flowing into the sector in the coming years.

The biggest deterrent for foreign investors is the unavailability of a single window clearance system, Ambika Soni said, adding the government was working on simplifying processes.

She said the government was in talks with three international firms to set up 1,000-bed hospitals in New Delhi and adjoining areas.

They will meet government by the end of this year and they will also set up budget accommodation facilities for patients, she said at a health conference.