India's healthcare expenditure to rise to 5% of GDP by 2030

The growth is driven by structural improvements within the sector.

India's healthcare expenditure is projected to increase from 3.3% to 5% of its GDP by 2030, according to a CareEdge Ratings report.

The rise is driven by structural improvements within the sector, such as doubling the number of medical seats, expanding insurance coverage, and increasing hospital bed capacity.

“Higher public spending, along with increased private investments in the healthcare sector, insurance expansion, and demographic shifts, are driving a structural transformation,” the report said.

However, rural healthcare infrastructure remains underdeveloped, and there is a shortage of trained medical professionals, making it difficult to extend healthcare coverage to all regions of the country.

“India spends 3.3% of its GDP on healthcare, with per capita expenditure at only $80,” it added.