India’s healthcare delivery sector to reach $250b by 2029

The growth will be driven by rising health awareness. 

India’s healthcare delivery sector is forecasted to grow to $250b by 2029 with a compound annual growth rate of 18%, according to Praxis. 

The growth will be driven by rising health awareness, government policies, medical tourism, and expanding insurance coverage. 

Private hospitals dominate the market accounting for 78%, whilst public hospitals hold the remaining 22%. Significant disparities exist in rural areas where only 24% of hospital beds and 48% of healthcare facilities are available, despite housing 64% of India’s population. 

Rising non-communicable diseases will also contribute to market growth as respiratory diseases are projected to reach 74% by 2030, underscoring the need for preventive healthcare. 

Moreover, emerging technologies such as AI, genetic testing, robotic surgery, digital OPD, and 3D printing are optimising hospital operations. However, challenges including high costs and data privacy concerns remain significant. 

The report also noted a large segment of the population lacks health insurance. Whilst the government offer low-income individuals coverage, innovative insurance models are needed to bridge the gap for India’s middle-income population. 

"The healthcare sector in India is at an inflexion point where technology can play a pivotal role in addressing existing disparities and improving outcomes,” Aryaman Tandon, managing partner for healthcare at Praxis Global Alliance, said.