The healthcare industry is one of the fastest-growing in India, both in terms of revenue as well as employment. Expected to reach USD5 billion by 2023 at a CGAR of 39%, the sector comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment. The Indian healthcare sector employs around 4.7 million people and has generated 2.7 million additional jobs in India between 2017 and 22.

While the Covid-19 pandemic acted as an eye-opener for the Indian healthcare industry and boosted efforts to make the system more efficient, other factors that have been driving the healthcare market in India include the increasing incidence of lifestyle diseases, rising demand for affordable healthcare due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration, and various government initiatives like e-health. Healthcare in India is categorised into public and private categories.

The government-controlled public healthcare system primarily focuses on providing basic healthcare facilities via primary healthcare centres (PHCs) in rural areas and has limited involvement in secondary and tertiary care. The private sector provides the majority of secondary, tertiary, and quaternary care concentrated in metros and tier-1 and tier-2 cities.

The Indian hospital industry accounts for 80% of the total healthcare system in the country, and it is witnessing a huge investor demand from global and domestic players. The hospital industry is expected to reach USD132 billion by 2023 growing at a CAGR of 16-17%. India also has an advantage as a medical tourism destination due to the efficient but low-cost treatment available in the country. In 2020, India’s medical tourism market was estimated to be worth USD5-6 billion and is expected to reach USD 13.42 billion by 2026.