# Healthcare Industry in India India's hospital market is estimated at US$ 122.3 billion in 2025 and expected to be valued at US$ 135.3 billion in 2026 and is projected to reach US$ 202.5 billion by 2030, growing at a CAGR of 10.61%. Explore Other Industries Agriculture and Allied Industries Auto Components Automobiles Aviation Ayush Banking Biotechnology Cement Chemicals Consumer Durables Defence Manufacturing E-Commerce Education and Training Electric Vehicle Electronics System Design & Manufacturing Engineering and Capital Goods Financial Services FMCG Food Processing Gems and Jewellery Healthcare Infrastructure Insurance IT & BPM Manufacturing Media and Entertainment Medical Devices Metals and Mining MSME Oil and Gas Paper & Packaging Pharmaceuticals Ports Power Railways Real Estate Renewable Energy Retail Roads Science and Technology Services Steel Telecommunications Textiles Tourism and Hospitality ## Advantage India ### Strong Demand *The demand for Indian healthcare professionals is expected to double nationally and globally by 2030. *507,244 foreign nationals arrived specifically for medical treatment in 2025 in India. 2025 data shows that medical tourism constitutes approximately 5.5% of total Foreign Tourist Arrivals (FTAs). *India has approximately 1.3 hospital beds per 1,000 population (or ~13 beds per 10,000), significantly lower than the global median of 29 beds, highlighting substantial opportunities for healthcare infrastructure expansion. ### Attractive Opportunities *India’s public expenditure on healthcare is expected to be 1.9% of GDP in FY26, compared to 2.5% in FY25, as per the Economic Survey 2024-25. *In 2025-26 alone, the healthcare sector saw US$ 3.5 billion of investment in 46 M&A deals. *Q2 FY26 witnessed announced transactions exceeding Rs. 10,000 crore (US$ 1.13 billion) across the hospitals, diagnostics, and specialty care segments, including buyouts, minority investments, and cross-border acquisitions. ### Rising Manpower *Availability of a large pool of well-trained medical professionals in the country. *India's healthcare workforce has already exceeded 6 million as of CY24. However, this represents only the beginning, as the sector is anticipated to experience substantial growth, with over 6.3 million additional jobs expected by CY30. ### Policy and government support *In 2026-27, the Ministry will spend 37% of its total budget on NHM. The mission aims at strengthening public health services in rural and urban areas. *The Union Budget 2026–27 allocated Rs. 1,06,530.42 crore (US$ 12.06 billion) to the Ministry of Health and Family Welfare, marking a ~10% increase over the Revised Estimates of FY 2025–26. *The government has allocated Rs. 9,500 crore (US$ 1.08 billion) for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) in FY27. Snapshot Showcase Infographics Reports Related News Last updated: Sep, 2026 #### Healthcare Industry Report May, 2026 ## Introduction Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players. India’s healthcare delivery system is categorised into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centres (PHCs) in rural areas. The private sector provides most secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities. The private sector contributes around 62% to India’s healthcare infrastructure and public sector contributes around 38%. India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost-competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe. The low cost of medical services has resulted in a rise in the country’s medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research. ## Market Size The Indian healthcare sector, valued at Rs. 7,17,590 crore (US$ 110 billion) in 2016 and Rs. 29,21,668 crore (US$ 372 billion) in 2023, is projected to reach Rs. 55,17,022 crore (US$ 638 billion) by 2025, growing at a robust 21.57% CAGR, driven by innovation across hospitals, pharmaceuticals, and diagnostics. Healthcare spending accounted for 3.34% of India’s GDP in 2023 and is expected to rise to 5% by 2030, reflecting the sector’s increasing role in the economy. India continues to expand its healthcare infrastructure. As of March 2026, the country has 13,88,185 registered allopathic doctors and 7,51,768 AYUSH practitioners, supported by a growing workforce of 39.40 lakh nursing personnel. To strengthen capacity, there are 5,310 nursing institutions (including 806 government institutes) producing nearly 3.82 lakh nurses annually. Medical education capacity is also expanding, with 43 new medical colleges established in 2025–26, taking the total to around 818 medical colleges across India. The Government has also approved 11,682 MBBS seats and 8,967 postgraduate seats, with over 1,28,000 MBBS seats available annually, further strengthening the talent pipeline. Investment activity in the sector remains strong, with the hospital segment accounting for nearly 80% of the overall healthcare market, highlighting its important role in industry growth. The Government continues to prioritise healthcare infrastructure through initiatives such as the Ayushman Bharat Health Infrastructure Mission, aimed at strengthening capacity and access across the country. The Union Budget 2026–27 allocated Rs. 1,06,530.42 crore (US$ 12.06 billion) to the Ministry of Health and Family Welfare, marking a ~10% increase over the Revised Estimates of FY 2025–26. Health insurance penetration is steadily rising. Total Health Insurance Premium in FY26 stood at Rs 1,37,144 crore (US$ 15.52 billion), up from Rs 1,18,688 crore (US$ 13.84 billion) in FY25. In July 2025, standalone health insurers’ premiums rose 10.4% YoY to Rs. 3,622 crore (US$ 409.87 million), reflecting growing adoption and demand for coverage. Digital health and telemedicine are emerging as key growth drivers. The rapid adoption of telemedicine and other digital technologies to address healthcare delivery challenges in rural and remote areas, along with their applications in education, training, and administration, presents significant opportunities for investors. India’s telemedicine market is expected to grow at a CAGR of 20.42% through 2034 reaching US$ 20.02 billion, while the global remote patient monitoring market is projected to expand at a CAGR of 12.8% to reach US$ 66.33 billion by 2031. Medical tourism continues to strengthen India’s global healthcare position. The market is estimated at US$ 8.71 billion in 2025 and is projected to grow to US$ 16.2 billion by 2030, at a CAGR of 13%. 507,244 foreign nationals arrived specifically for medical treatment in 2025 in India. 2025 data shows that medical tourism constitutes approximately 5.5% of total Foreign Tourist Arrivals (FTAs). The sector is witnessing significant growth driven by factors such as the rising global burden of chronic diseases, ageing populations in developed countries, and increasing healthcare costs worldwide, positioning India as a preferred destination for affordable and advanced medical care. ## Investments/ Developments - Q2 FY26 witnessed announced transactions exceeding Rs. 10,000 crore (US$ 1.13 billion) across the hospitals, diagnostics, and specialty care segments, including buyouts, minority investments, and cross-border acquisitions. - Average revenue per occupied bed (ARPOB) across leading hospital networks increased by 10–16% year-on-year, driven by effective pricing strategies and a higher proportion of complex medical procedures. - Digital transformation moved into a more mature phase in 2025: Over 90% of retail policies are now estimated to be issued digitally across insurers. A growing share of health claims, 60–70% in urban markets, are processed through digital or cashless modes. - As on February 28, 2026, a total of 43.52 crore Ayushman cards have been created, including 1.14 crore Ayushman Vay Vandana cards created for senior citizens aged 70 years and above, and a total of 36,229 hospitals have been empanelled under the scheme across the country, out of which 19,483 are public and 16,746 are private hospitals. - To boost India’s position as a global medical tourism hub, the government proposed a scheme to establish five Regional Medical Hubs in partnership with the private sector, integrating medical, educational, and research facilities along with AYUSH centres and medical value travel infrastructure. - Healthcare demand in Tier II and Tier III cities is projected to grow at 16-18% CAGR over the next few years, higher than the 12-14% CAGR in metros, showing continued momentum beyond 2025. - Tier II cities are expected to add 40 million people by FY27, while 70% of hospitals are already empanelled under Ayushman Bharat as of 2025, improving access and accelerating infrastructure expansion toward FY27. - In FY26, a total of 27,86,548 Reproductive and Child Health (RCH) IDs have been linked with ABHA IDs, including 2,59,050 linked through new ABHA ID creation and 25,27,498 using existing ABHA IDs. - In Q3 2025, Healthcare attracted Rs. 4,435 crore (US$ 500 million) in PE-VC investments. - Health insurance continued to strengthen its lead within India’s non-life insurance sector in FY26, with its market share rising to 40.8% from 38.6% in the previous year. Standalone health insurers contributed 32.7% of the total health insurance premium. - India's seven standalone health insurance companies (SAHIs) have captured 41% market share of the non-life insurance sector as of April-December FY25, up from 30% in FY20, driven by superior product innovation and customer support. Standalone health insurers are projected to achieve 20–21% growth in FY 2026, outpacing general insurance growth of 13%, driven by retail expansion and enhanced agency networks. - India’s health-tech sector is projected to reach Rs. 4,43,500 crore (US$ 50 billion) by 2033, driven by AI and automation, supporting faster claim decisions and smarter underwriting. - In H1 2025, the Indian health-tech startups received Rs. 7,095 crore (US$ 828 million) in funding, a sign of continued investor confidence in the sector. - In January 2025, Innovaccer Inc. raised Rs. 2,356 crore (US$ 275 million) in a Series F round to scale its Healthcare Intelligence Cloud, build new AI- and cloud-capabilities (like copilots/agents for clinical decision support, utilization management etc.), expand its developer ecosystem, and deepen collaboration with its 130+ healthcare customers. - In Q1 2025, Mergers and acquisitions (M&A) accounted for 57% of the total deal value, while private equity (PE) made up 59% of the overall deal volume in the pharma and healthcare sector. - On September 9, 2025, Apollo Hospitals announced it will acquire a 31% stake in Apollo Health and Lifestyle Ltd for Rs. 1,254 crore (US$ 146 million). Upon completion of the proposed acquisition, AHLL will become a 99.4% Subsidiary of Apollo Hospitals. - The Indian healthcare sector is witnessing unprecedented growth, with private equity investment in Indian healthcare surging to Rs. 4,900 crore (US$ 572 million) across 33 deals in Q2 CY25. - On July 9, 2025, Manipal Hospitals signed definitive agreements to acquire Pune-based Sahyadri Hospitals from Ontario Teachers’ Pension Plan for Rs. 6,000 crore (US$ 679.15 million), strengthening its presence in western India and expanding its multi-specialty hospital network. - India’s health-tech sector is poised for strong growth, with healthcare hiring intent rising to 52% in H1 2025, up 5% from H2 2024, driven by demand for digital health, diagnostics and specialised care roles. - Apollo Hospitals, and the University of Leicester have established the Centre for Digital Health and Precision Medicine in Chittoor, Andhra Pradesh. This initiative seeks to transform healthcare by advancing research and education in digital health, precision medicine, and specialized healthcare programs. - Iswarya Hospital launched in Chennai with twelve-story building features 14 operational rooms and 72 clinical service departments. It is equipped with AI-powered CT and MRI machines, a catheterization lab, advanced surgical interventions, and specialized therapies in cardiology, orthopedics, and neurology. - In February 2025, Metropolis Healthcare has partnered with Roche Diagnostics India to launch a self-sampling HPV DNA test for cervical cancer screening. This innovative test empowers women to take charge of their health by allowing them to collect their samples for testing in a comfortable and convenient manner. - Tata Group has partnered with the Indian Institute of Science (IISc) to establish Tata IISc Medical School at the institute’s Bengaluru campus and will contribute Rs. 500 crore (US$ 57.6 million) to support it. - The Indian medical devices sector has witnessed remarkable growth in recent years and is expected to reach Rs. 4,71,875 crore (US$ 50 billion) by FY31 driven by increasing demand for quality healthcare, advancements in technology, and favourable government policies. Start-ups in this sector have been instrumental in fostering innovation, improving accessibility, and reducing costs. - In 2024, DNA Wellness announced a Rs. 200 crore (US$ 23.98 million) investment to establish over 100 cervical cancer screening labs across India by 2027. They have exclusive rights to the CERViSure DNA Ploidy Test, a quick and non-invasive cancer detection method. The first lab opened in Ahmedabad, with more planned in Vadodara, Rajkot, and Surat by October 2024. This initiative aims to improve access to cervical cancer screening, addressing the significant health burden of approximately 130,000 new cases and 80,000 deaths annually in India. - Apollo 24|7 has merged with Keimed in a Rs. 2,475 crore (US$ 296 million) deal, with Advent International acquiring a 12.1% stake in the new entity valued at Rs. 22,481 crore (US$ 2.69 billion). Apollo Hospitals will maintain a majority stake of at least 59.2%. - DocPlix, a health-tech startup, raises Rs 1.2 crore (US$ 0.14 million) in a bridge round led by Inflection Point Ventures (IPV), aiming to digitize health records for India's 1.4 billion population and enhance healthcare accessibility. - IIT Bombay partners with Blockchain for Impact (BFI) to receive a US$ 900,000 investment aimed at developing affordable healthcare technologies, as part of a broader US$ 15 million BFI-Biome initiative to address urgent health challenges and advance biomedical innovation. - In May 2023, Temasek, a Singaporean investment company, invested US$ 2 billion in Manipal Health Enterprises, a leading healthcare provider in India, highlighting the growing interest in the Asian healthcare market. - In September 2023, Nirma a diversified Indian conglomerate, acquired a 75% stake in Glenmark Life Sciences, a pharmaceutical company, for US$ 689 million. This transaction marked one of the biggest Indian healthcare M&A deals of the year. - As of February 20, 2023, more than 220.63 crore COVID-19 vaccine doses have been administered across the country. While as of May 11, 2023, more than 2.20 billion COVID-19 vaccine doses have been administered across the country. - As of July 15, 2023, India has exported 30.12 crore vaccine doses. - Multinational healthcare company Abbott has committed to converting 75 Primary Health Centres (PHCs) to Health and Wellness Centres (HWCs) in nine Indian States, in collaboration with Americares India Foundation, a nonprofit organisation dedicated to relief and development in the field of health. This will benefit over 2.5 million people from under-resourced communities every year. ## Government Initiatives Some of the major initiatives taken by the Government of India to promote the Indian healthcare industry are as follows: - The Union Budget 2026–27 allocated Rs. 1,06,530.42 crore (US$ 12.06 billion) to the Ministry of Health and Family Welfare, marking a ~10% increase over the Revised Estimates of FY 2025–26. The Department of Health and Family Welfare receives Rs. 1,01,709 crore (US$ 11.51 billion) which is 95% of the total budget allocation to the Ministry in FY26. - The Department of Health Research received Rs. 4,821.21 crore (US$ 545.57 million), reflecting a ~23% increase, while continued focus on schemes such as AB-PMJAY and ABDM highlights the government’s commitment to reducing out-of-pocket expenditure and strengthening digital health infrastructure. - In 2026-27, the Ministry will spend 37% of its total budget on NHM. The mission aims at strengthening public health services in rural and urban areas. - In the Union Budget FY 2026-27, Rs. 11,307 crore (US$ 1.28 billion) was allocated to Pradhan Mantri Swasthya Suraksha Yojana scheme. - Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PM-JAY) - Under PM-JAY, Bihar has achieved 100% coverage of all eligible families. As of September 2025, more than four crore Ayushman Cards have been created in the state. In just one year, this has resulted in savings of over Rs. 1,000 crore (US$ 116.7 million) in out-of-pocket healthcare expenses for the people of Bihar. - Ayushman Bharat Digital Mission (ABDM) - Bihar has also secured the first rank in the implementation of ABDM. - The India-UK Free Trade Agreement signed on July 24, 2025, introduced duty relief enabling Indian pharmaceutical companies' easier access to UK drug stores, with zero tariffs on nearly 99% of exports. - The Union Budget 2026-27 emphasizes healthcare infrastructure by increasing the allocation for the Ministry of Ayush to Rs. 4,408.93 crore (US$ 467.15 million) from Rs. 3,671.82 crore (US$ 415.51 million) as per revised estimates in FY25. - In 2025, the Ministry of AYUSH has developed the Central Sector scheme for Promotion of International Cooperation for AYUSH (ICScheme) to boost exports, recognition, research, and international collaboration in AYUSH systems. - WHO with the support of Ministry of Ayush have developed and published standardized terminology documents for Ayurveda, Unani, and Siddha systems, helping to create a globally accepted, unified language for these traditional medical practices. - Under the ICScheme, India has signed 25 country-to-country MoUs, 52 institute-to-institute MoUs, and 15 AYUSH Chair MoUs. - Every year, UIP targets 2.54 crore newborns and 2.9 crore pregnant women, aiming to ensure that every child is fully immunized in their first year of life. - As a result of sustained efforts and outreach of UIP scheme, India’s Full Immunization Coverage (FIC) has reached an impressive 98.4%, reflecting the government’s strong commitment to preventive healthcare. - As of February 6, 2025, over 73.98 crore Ayushman Bharat Health Accounts (ABHA) have been created, 49.06 crore health records linked, 3.63 lakh health facilities registered, 5.64 lakh healthcare professionals onboarded, and 1.59 lakh facilities using ABDM-enabled software under the Ayushman Bharat Digital Mission. - On September 3, 2025, the Life Insurance Council announced that a specialised insurance product tailored for rural India will be launched this year to improve financial protection and expand insurance penetration in underserved regions. - The Health Ministry has launched the U-WIN platform on September 6, 2024, to digitize vaccination records across India. This initiative aims to streamline vaccine tracking and improve public health data management nationwide. - The government has allocated Rs. 99,858 crore (US$ 11.50 billion) to the healthcare sector in the Union Budget 2025-26 for the development, maintenance, and enhancement of the country's healthcare system. This reflects a 9.78% increase from the previous allocation of Rs. 90,958 crore (US$ 10.47 billion) in FY25. - On January 25, 2025, India's Prime Minister, Mr. Narendra Modi, and Indonesia's President, Mr. Prabowo Subianto, signed a Memorandum of Understanding (MoU). This MoU aims to establish quality assurance standards for traditional medicine, representing a significant advancement in the pursuit of global standards in this field. - Union Ministers of State for Health and Family Welfare, Mr. Prataprao Ganpatrao Jadhav and Mrs. Anupriya Singh Patel, recently unveiled three key initiatives at the Ayushman Bharat, Quality Health event. These initiatives aim to enhance healthcare quality and facilitate ease of doing business in India, including a virtual NQAS assessment for Ayushman Arogya Mandirs, an IPHS compliance dashboard for real-time monitoring of public health facilities, and a spot food licence initiative for food vendors. - Union Minister of Health and Family Welfare and Chemicals & Fertilizers Dr. Mansukh Mandaviya, virtually launched 'MedTech Mitra,' a platform designed to support young Indian innovators in the MedTech sector by aiding in their research, development, and regulatory approvals, aiming to reduce import dependence and transform India into a leading US$ 50 billion MedTech industry by 2030, while fostering indigenous development of affordable, quality medical devices and diagnostics, in line with the vision of Viksit Bharat and Atmanirbhar Bharat. - Poshan Abhiyan is a Centrally Sponsored Scheme with the implementation of the scheme being done by States/UTs. To ensure that all Anganwadi Centres are equipped with Smartphones and Growth Monitoring devices (GMDs) such as Infantometer, Stadiometers, and Weighing Scale for Mothers and Infant, the Ministry has released revised guidelines for technical specifications and replacement of GMDs by the States. ## Road Ahead India’s healthcare sector is extremely diversified and is full of opportunities in every segment, which includes providers, payers, and medical technology. India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep. Rising income levels, an ageing population, growing health awareness and a changing attitude towards preventive healthcare are expected to boost healthcare services demand in the future. Greater penetration of health insurance aided the rise in healthcare spending, a trend likely to intensify in the coming decade. ## FAQs ## What is the healthcare industry in India? The healthcare industry in India comprises hospitals, pharmaceuticals, medical devices, diagnostics, health insurance, telemedicine, clinical research, and medical tourism. It is one of India's largest sectors, contributing significantly to employment, healthcare access, and economic growth. ## Why is the healthcare sector in India growing rapidly? The healthcare sector in India is expanding due to rising healthcare expenditure, growing health insurance coverage, an ageing population, increasing lifestyle diseases, digital health adoption, and strong public and private investments in healthcare infrastructure. ## What are the major segments of the healthcare industry? The healthcare industry includes hospitals, pharmaceuticals, diagnostics, medical devices, telemedicine, health insurance, clinical trials, medical tourism, and digital health services. Together, these segments form one of India's fastest-growing and most diversified industries. ## What are the key growth drivers of the healthcare industry in India? The healthcare industry in India is driven by expanding healthcare infrastructure, rising medical tourism, increasing health insurance penetration, digital healthcare, growing demand from Tier-II and Tier-III cities, and continuous investments in hospitals and diagnostics. ## How is digital healthcare transforming the healthcare sector? Digital technologies are transforming the healthcare sector in India through telemedicine, the Ayushman Bharat Digital Mission (ABDM), ABHA IDs, AI-powered diagnostics, digital health records, remote patient monitoring, and cashless health insurance, improving healthcare accessibility and efficiency. ## What government initiatives support the healthcare industry in India? The Government is strengthening the healthcare industry in India through Ayushman Bharat PM-JAY, Ayushman Bharat Digital Mission (ABDM), National Health Mission (NHM), PMSSY, Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), and higher healthcare budget allocations. ## What are the investment opportunities in India's healthcare sector? The healthcare sector in India offers investment opportunities across hospitals, diagnostics, medical devices, health-tech, telemedicine, pharmaceuticals, medical tourism, health insurance, and AI-enabled healthcare solutions. Rising private equity investments and supportive policies continue to attract global investors. ## How is medical tourism contributing to India's healthcare industry? Medical tourism is strengthening the healthcare industry in India, supported by world-class medical expertise, affordable treatment, and advanced healthcare facilities. India's medical tourism market is projected to grow from US$ 8.71 billion in 2025 to US$ 16.2 billion by 2030. ## What is the future outlook of the healthcare industry in India? The healthcare industry in India is expected to witness robust long-term growth, driven by digital health, medical tourism, expanding healthcare infrastructure, health insurance, and rising public and private investments. Healthcare spending is projected to reach 5% of GDP by 2030. #### Healthcare Industry Report May, 2026 ## Related News MORE 9 Sep 26 Biocon signs 10-year Brazil supply deal for Pertuzumab breast cancer drug... Biocon has secured a 10-year supply contract for Pertuzumab in Brazil, gaining access to the country’s public healthcare market through a partnership with Bahiafarma and Bionovis. 8 Sep 26 Union Minister of Commerce and Industry Mr. Piyush Goyal Calls for India to Emerge as a Global Medical and Healthcare Destination... 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