How fast can India’s healthcare scale with private equity?

The challenge is ensuring private capital drives growth without leaving access gaps.

Healthcare in India is attracting significant private capital as investors focus on scalable, high-growth sectors with export potential.

Private equity and venture capital investment reached $207m from 2021 to 2025, according to McKinsey & Co., Inc. Pharmaceuticals and healthcare captured roughly 10% of that, making the sector one of the biggest recipients of private funds.

Co-investments accounted for about 25% of total private equity deployment, with healthcare taking 8% of this pool.

Hospital investments rose from $730m in 2022 to almost $6b in 2024, whilst foreign direct investment more than doubled to $1.56 billion in 2025, according to Rubix Data Sciences Pvt. Ltd.

Private providers plan to add 34,000 beds by 2029, backed by $4.8b, with 40% of growth targeting tier-2 and tier-3 cities such as Patna, Lucknow, and Bhubaneswar.

Digital health is also expanding rapidly. Valued at $8.8b in 2024, the market is projected to exceed $47.8b by 2033, supported by a state programme that seeks to develop the backbone for an integrated digital health infrastructure.

The government is also pushing the National Telemedicine Service, which provides teleconsultation, electronic records, and remote diagnostics.

Artificial intelligence (AI) is being used in imaging, robotic surgery, and neonatal care. For example, All India Institute of Medical Sciences, Nagpur’s tele-neonatal unit has halved infant mortality, whilst the Institute of Medical Sciences, Banaras Hindu University saves $240,000 annually with AI imaging.

Health insurance premiums reached $14b in 2025, and removing the goods and service tax could improve coverage, especially for middle- and lower-income groups.

The challenge remains ensuring private capital drives growth without leaving gaps in access, whilst foreign investment reshapes the sector’s competitive dynamics.

Questions to ponder:

1. How can private capital drive healthcare growth without leaving access gaps?
2. Does foreign ownership risk prioritise profits over public health goals?