India’s health expenditure to see 10.2% CAGR until 2029

However, health spending remains low as a share of GDP.

India’s health expenditure is projected to witness a 10.2% compound annual growth rate until 2029, with public spending outpacing private, according to a BMI report.

The sector is driven by rising demand, an increasing burden of chronic diseases, infrastructure developments, and the integration of modern healthcare technologies.

However, the country’s health spending remains low as a share of GDP, standing at 3.4%.

This is below levels seen in other large emerging markets such as Mainland China, Mexico, Türkiye, and Thailand.

“Low spending on healthcare, despite strong growth forecasts, could impede efforts to enhance healthcare infrastructure and workforce development, which are crucial for meeting the needs of an expanding and ageing population,” the report said.