Snapshot
Working towards building a healthier India
The Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well as private players.
Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving the healthcare market in India.
- The Indian Healthtech industry was valued at $1.9bn in 2020. By 2023, it is expected to reach $ 5B by 2023 at a CAGR of 39%
- The digital healthcare market in India was valued at INR 116.61 Bn in 2018, and is estimated to reach INR 485.43 Bn by 2024, expanding at a compound annual growth rate (CAGR) of ~27.41% during the 2019-2024 period
- By 2022, the diagnostics market is expected to grow at a CAGR of 20.4% to reach $32 bn from $5 bn in 2012
- The Telemedicine market is the maximum potential eHealth segment in India, which is expected to touch $5.4 Bn by 2025, growing at a compound annual growth rate (CAGR) of 31%
- Over the next 10 years, National Digital Health Blueprint can unlock the incremental economic value of over $200 bn for the healthcare industry in India
- India has the world’s largest Health Insurance Scheme (Ayushman Bharat) supported by the government
- India’s comprehensive investment in Medical Education: INR 17,691.08 Cr invested in 157 new approved Medical Colleges since 2014
- Ayush sector has witnessed significant growth from $3 bn in 2014 to $18 bn in 2022
100% FDI is allowed under the automatic route for greenfield projects. For investments in brownfield projects, up to 100% FDI is permitted under the government route.
For further details, please refer FDI Policy
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eSanjeevani telemedicine consultations
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Increase in the total investments in healthtech startups.
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Share in hospital beds (Pvt.)
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Industry CAGR (2015-20)
Explore Related Sub Sectors
‘Ayushman Bharat - NHP Scheme’ - World's largest government-funded healthcare programme
India plans to create 1 mn skilled healthcare providers by 2022
Healthcare has become one of India's largest sectors both in terms of revenue and employment
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
Healthcare industry in India is projected to reach $372 bn by 2022
Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The healthcare sector is growing at a tremendous pace owing to its strengthening coverage, services, and increasing expenditure by public as well private players.
- The hospital industry in India, accounting for 80% of the total healthcare market, is witnessing a huge investor demand from both global as well as domestic investors. The hospital industry is expected to reach $132 bn by 2023 from $61.8 bn in 2017; growing at a CAGR of 16-17%.
- In 2020, India’s Medical Tourism market was estimated to be worth $5-6 Bn and is expected to grow to $13 Bn by 2026.
- Healthcare sector in India is expected to grow to reach a size of $50 bn by 2025.
- The diagnostics industry in India is currently valued at $4 bn. The share of the organized sector is almost 25% in this segment (15% in labs and 10% in radiology).
- The primary care industry is currently valued at $13 bn. The share of the organized sector is practically negligible in this case.
- 1,50,000 Ayushman Bharat centers, which aim at providing primary health care services to communities closer to their homes, are operational in India
- The market size of AYUSH has grown by 17% in 2014-20 to reach $18.1 bn and the industry is projected to reach $23.3 bn in 2022
- Health insurance contributes 20% to the non-life insurance business, making it the 2nd largest portfolio. The gross direct premium income underwritten by health insurance grew 17.16% year-on-year to reach $6.87 bn in FY20
- Over 4 cr health records of citizens digitized and linked with their Ayushman Bharat Health Account (ABHA) numbers under Ayushman Bharat Digital Mission (ABDM)
India is a preferred destination for Medical Value Travel (MVT) where patients from all over the globe come to "Heal in India" and is growing as huge opportunity area in the Healthcare market. For further details click here
GROWTH DRIVERS
Robotic process automation (RPA)
RPA to improve the efficiency of the healthcare workforce; reducing costs and creating the value proposition
Shifting Disease Burden
Non-Communicable Diseases (NCDs) account for 50% of the disease burden and 60% of all deaths in India
Rise in Medical Tourism
Due to the relatively low cost of medical care in India, medical tourism is experiencing a 22-25% growth. It contributes over $2Bn to the healthcare market in India. Increased demand for healthcare and medical devices from rise in medical tourism
Policy Support & Incentives
100% FDI allowed in Greenfield & Brownfield projects, measures to correct unfavourable duty structure are being undertaken, single window clearance e-portal to improve EoDB
Atmanirbhar Bharat Abhiyaan - Self Reliant India
A special economic and comprehensive package of INR 20 lakh crores towards promoting manufacturing in India
Life Expectancy
Life expectancy is going to exceed 70 years by 2022, hence more healthcare services required
Insurance Coverage
20% Indians covered; expected to rise with rising incomes, urbanization
Emergence of telemedicine
Along with these, the emergence of telemedicine, and government initiatives like e-health married with tax benefits and incentives are driving the healthcare market in India.
Medical Infrastructure
Over $200 bn to be spent on medical infrastructure by 2024


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Invest India closely works with
Government Ministry/ Department
Industry Association
- Association of Diagnostics Manufacturers of India (ADMI)
- Association of Indian Medical Device Industry (AIMED)
- Confederation of Indian Industry (CII)
- Federation of Indian Chambers of Commerce & Industry
- Indian Medical Association (IMA)
- Medical Technology Association of India (MTaI)
- The Associated Chambers of Commerce and Industry of India