The Indian healthcare industry is poised for significant growth, driven by various factors such as rising household spending, increasing consumer expectations, government support, and expanding opportunities for investment. Below, we highlight key insights into this exciting industry.
India's healthcare sector is expected to grow from $372 billion in 2022 to $638 billion by 2025, with a growth rate of 22-25%. Right now, healthcare makes up just 5-6% of India's GDP, compared to 17% in the U.S., showing there is huge potential for growth.
Indian households spend about 10-12% of their income on healthcare, and this is expected to increase as the demand for better healthcare grows. Around 70% of this spending is for everyday healthcare needs, showing the need for affordable and accessible primary healthcare.
Consumers in India are increasingly expecting higher quality, reliability, and convenience in healthcare services. They are willing to pay more for better care, advanced diagnostics, and personalized treatment.
Post-pandemic, there is a greater focus on preventive healthcare and wellness, with more people seeking early diagnoses and lifestyle management. The primary healthcare sector, including clinics and diagnostic centers, is expected to grow rapidly.
The Indian government allocated ₹2.5 trillion in the 2023 Union Budget for healthcare programs like Ayushman Bharat, National Digital Health Mission, and PMJAY. By 2025, healthcare spending is expected to rise to 2.5-3% of GDP, driving further growth.
The healthcare industry is set to reach $638 billion by 2025, presenting major investment opportunities in telemedicine, digital health platforms, diagnostics, and specialized care centers.
