India’s healthcare market to reach $638b by 2025

However, the country still needs to fill in its infrastructure gap.

The healthcare sector in India is projected to reach $638b by 2025 from $400b in 2024, according to Way2Wealth Brokers Pvt. Ltd.

In its latest analysis, the company said the hospital industry dominates the sector, accounting for 80% of total healthcare spending. This market is expected to further expand at a compound annual growth rate of 8.0% from 2024 to 2032, reaching an estimated $194b by 2032.

“Hospitals are poised to benefit significantly from rising healthcare spending, primarily driven by the demand-supply gap in bed capacity,” the report read.

“As the population grows and healthcare needs increase, the shortfall in hospital beds will create opportunities for expansion and investment in the sector,” it added.

Way2Wealth cited a Knight Frank and Berkadia report that said India has a 2 billion square feet shortfall in healthcare infrastructure for its 1.42 billion population. Given the current bed-to-population ratio of 1.3 beds per 1,000 people, the country will need an additional 2.4 million beds to bridge the gap.

The healthcare sector is also one of India's largest employers, providing jobs to 7.5 million people as of 2024. The demand for Indian healthcare professionals is expected to double by 2030, both nationally and globally, driven by a shortage of healthcare workers, the report said.