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

  • mn

    eSanjeevani telemedicine consultations

  • %

    Increase in the total investments in healthtech startups.

  • %

    Share in hospital beds (Pvt.)

  • %

    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

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


  • 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


Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.

Major Investors

Latest In Healthcare

Press releaseJan 19, 2023

Dr. Mansukh Mandaviya addresses Roundtable Discussion on Opportunities in R&D and Innovation in Life Sciences…

Read Now

Press release

Dr. Mansukh Mandaviya addresses Roundtable…

Press release

Year-end Review: Ministry of Ayush

Press release

WHO-GCTM to be emerge as a centre of global…

Press Release

Reforms in Ayush sector to boost growth:…


Invitation of Applications from eligible…


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.

Was it helpful?

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.

Was it helpful?

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

Was it helpful?

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.

Was it helpful?

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. 

Was it helpful?


New India Timeline @2047

Ministry of Ayush signed MoU with ITDC for Promotion of Medical Value travel in India

Ministry of Ayush has signed a Memorandum of Understanding (MoU) with India... Visit Page

Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity