Advantage India
Strong
Demand
* The demand for Indian healthcare professionals is expected to double nationally and globally by 2030.
* 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 Q3 2025, the pharma, hospital, and biotech sectors recorded 72 deals worth US$ 3.5 billion, marking a 166% increase in total deal value compared to the previous quarter, reflecting strong investment momentum and consolidation activity.
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
* The Government aims to develop India as a global healthcare hub.
* The Union Budget 2026–27 allocated Rs. 1,06,530.42 crore (US$ 12.05 billion) to the Ministry of Health and Family Welfare, marking a ~10% increase over the Revised Estimates of FY 2025–26 (Rs. 96,853 crore).
* The government has allocated Rs. 9,500 crore (US$ 1.08 billion) for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) in FY27.
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 Centers (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.
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. 9,42,590 crore (US$ 110 billion) in 2016 and Rs. 31,87,668 crore (US$ 372 billion) in 2023, is projected to reach Rs. 54,67,022 crore (US$ 638 billion) by 2025, growing at a robust 17.5-22.5% CAGR. Healthcare spending accounted for 3.3% of India’s GDP in 2022 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 February 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. In Union Budget FY26, the government allocated Rs. 95,957.87 crore (US$ 10.86 billion) to the healthcare sector, marking a 9.46% increase over FY25, reflecting sustained commitment, although gaps in public health infrastructure continue to persist.
Health insurance penetration is steadily rising. Total health insurance premiums stood at Rs. 1,18,688 crore (US$ 13.84 billion) in FY25, up from Rs. 1,09,007 crore (US$ 12.72 billion) in FY24. In July 2025, standalone health insurers’ premiums rose 10.4% YoY to Rs. 3,622 crore (US$ 422.7 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 telehealth sector is expected to grow at a CAGR of 20.75% through 2030, while the global remote patient monitoring market is projected to expand at a CAGR of 12.7% to reach US$ 56.94 billion by 2030.
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$ 16.21 billion by 2030, at a CAGR of 13.23%. Between January and November 2025, around 450,633 patients visited India for treatment, reflecting strong inbound demand. 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
- In Union Budget 2026–27, the Government of India allocated a record Rs. 1,06,530.42 crore (US$ 12.05 billion) to the Ministry of Health and Family Welfare (MoHFW), marking a ~10% increase over the previous year, with Rs. 1,01,709 crore (US$ 11.51 billion) earmarked for the Department of Health and Family Welfare.
- The Department of Health Research received Rs. 4,821 crore (US$ 0.55 billion), 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.
- The budget also increased allocations under PMSSY and related schemes to modernise healthcare institutions and expand clinical training capacity, with plans to add 10,000 medical seats in the short term and up to 75,000 seats over five years.
- 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.
- As on November 20, 2025, a total of 51,36,284 Reproductive and Child Health (RCH) IDs have been linked with ABHA IDs, including 16,18,209 linked through new ABHA ID creation and 35,18,075 using existing ABHA IDs.
- In Q3 2025, Healthcare attracted Rs. 4,435 crore (US$ 500 million) in PE-VC investments.
- 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. 4,34,350 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 August 1, 2023, a total of 24.33 crore Ayushman cards have been created. To prevent, detect, and deter healthcare fraud and to ensure that eligible beneficiaries receive adequate treatment, the Government of India is using Artificial Intelligence (AI) and Machine Learning (ML). As of October 2023, a total of 26 crore Ayushman cards have been created.
- 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 Centers (PHCs) to Health and Wellness Centers (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:
- In Union Budget 2025-26, the Department of Health Research is receiving a special enhancement of Rs. 531 crore (US$ 62 million) over the next five years to support AI in healthcare, new therapies like gene therapy, cancer and anaemia research, pandemic preparedness, and boosting medical research institutes.
- 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.
- As of July 2025, over 41 Crore Ayushman Cards have been created under Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana.
- There are 31,466 hospitals empanelled under the scheme across the country with 14,194 of them being private. More than 9.84 Crore hospital admissions worth over Rs. 1,40,000 crore (US$ 16.34 billion) have been authorised under the scheme as of July 2025.
- The Union Budget 2025-26 emphasizes healthcare infrastructure by increasing the allocation for the Ministry of Ayush to Rs. 3,992 crore (US$ 465 million) in FY26 from Rs. 3,712 crore (US$ 433 million) 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 2.6 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 94.1%, 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.
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