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.

The Ministry of Health and Family Welfare (MoHFW) is committed to rapidly immunization coverage and consolidate the health systems strengthening efforts keeping in mind the socio-cultural practices and beliefs in child immunization among tribal communities in India. Universal Immunization Programme (UIP) is one of the largest cost-effective public health interventions targeting close of 26.7 Mn newborns and 29 Mn pregnant women annually for reduction of vaccine preventable under-5 mortality rate, by providing free of cost against 12 vaccine preventable diseases.

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 hospital sector in India was valued at INR 7940.87 Bn in FY21 in terms of revenue & is expected to reach INR 18,348.78 Bn by FY 2027, growing at a CAGR of 18.24%.
  • 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.

100% FDI is allowed under the automatic route for greenfield projects.

For further details, please refer FDI Policy

  • Mn+

    eSanjeevani telemedicine consultations have been completed

  • +

    Healthtech startups working in India

  • Mn

    Workforce of Allopathic Doctors in India

  • K

    Functional Ayushman Arogya Mandir

Explore Related Sub Sectors

‘Ayushman Bharat - NHP Scheme’ - World's largest government-funded healthcare programme

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Healthcare has become one of India's largest sectors both in terms of revenue and employment

Industry Scenario

The Indian Medtech Industry was estimated to be $10.63 Bn in 2020 and is expected to reach $50 bn by 2025

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. 
  • India ranks 10th in Medical Tourism Index (MTI) for 2020-2021 out of 46 destinations of the world. Foreign Tourists Arrival on medical purpose increases from 1.83 Lakh in 2020 to 5.04 Lakh in 2023 (Jan-Oct).
  • 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).
  • 1,56,000 Ayushman Bharat centers, which aim at providing primary health care services to communities closer to their homes, are operational in India.
  • More than 450 Mn ABHA IDs have been created, 2,19,546 Health Facilities have been registered, and around 2,28,794 Healthcare Professionals have been on boarded under ABDM, which shows that health services are being saturated, including by use of digital tools.

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


  • 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

  • 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 Cr towards promoting manufacturing in India.

  • 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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Investible Projects

Investment Opportunities in Healthcare

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    Asked Questions

    What are the Centrally Sponsored Schemes under Ayurvedic, Yoga and Naturopathy, Unani, Siddha and Homeopathy?

    Please find below the details of Centrally sponsored schemes under AYUSH:  

    National AYUSH Mission (NAM) comprising of:  

    (i) AYUSH Services  

    (ii) AYUSH Educational Institution  

    (iii) Quality Control of AYUSH Drugs

    (iv) Medicinal Plants

    For more information, click here

    Moreover, below the details of Central sector scheme under Champion Services Sector Scheme (CSSS) comprising:

    • Central sector scheme for the establishment of AYUSH super specialty hospitals/day care centres for medical tourism under CSSS for medical value travel.
    • Financial assistance in the form of Interest Subsidy for the establishment of AYUSH super specialty hospitals/ day care centres in addition to separate guidelines for skill development under CSSS for medical value travel.

    For more information, click here.

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    Who are entitled for Central Government Health Scheme facilities?

    The entitled parties include
     1) All Central Govt. employees and their dependant family members residing in CGHS covered areas.
     2) Central Govt. Pensioners and their eligible family members getting pension from Central Civil Estimates
     3) Sitting and Ex-Members of Parliament.
     4) Ex-Governors & Lieutenant Governors.
     5) Freedom Fighters.
     6) Ex-Vice Presidents.
     7) Sitting and Ex-Judges of Supreme Court & High Courts.

    For more information, click here.

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    What is CGHS?

    For the last six decades Central Government Health Scheme is providing comprehensive medical care to the Central Government employees and pensioners enrolled under the scheme. In fact CGHS caters to the healthcare needs of eligible beneficiaries covering all four pillars of democratic set up in India namely Legislature, Judiciary, Executive and Press. CGHS is the model Health care facility provider for Central Government employees & Pensioners and is unique of its kind due to the large volume of beneficiary base, and open ended generous approach of providing health care.
    CGHS provides health care through following systems of Medicine: 
    1) Allopathic
    2) Homoeopathic
    3) Indian system of medicine
    4) Ayurveda
    5) Unani
    5) Siddha 
    6) Yoga

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    What do you mean by Family Floater Policy?

    Family Floater is one single policy that takes care of the hospitalization expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured. Quite often Family floater plans are better than buying separate individual policies. Family Floater plans takes care of all the medical expenses during sudden illness, surgeries and accidents.

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    What are the different options for availing CGHS services to pensioners?

    Pensioners Residing in CGHS covered areas:
    a) They can get themselves registered in CGHS dispensary after making requisite contribution and can avail both OPD and IPD facilities.
    b) Such Pensioners are not eligible for Fixed Medical Allowance in lieu of CGHS.
    Pensioners residing in non-CGHS areas:
    i) They can opt for availing Fixed Medical Allowance (FMA) at $15.38 per month by not paying any contribution.
    ii) They can also avail benefits of CGHS (OPD and IPD) by registering themselves in the nearest CGHS city after making the required subscription. In such cases no Fixed Medical Allowance is given.
    iii) They also have the option to availing FMA for OPD treatment and CGHS only for IPD treatments after making the required subscriptions as per CGHS guidelines. 

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