NEW DELHI: India’s healthcare sector is poised for a major transformation, with its total market value expected to surpass USD 1.5 trillion by 2030, according to Rubix Industry Insights: Healthcare – September 2025, a report by Rubix Data Sciences.
Currently valued at USD 638 billion, the industry is growing at a brisk 19% annually, driven by rising incomes, wider insurance penetration, robust private investment, and digital innovation.
But while the sector is expanding rapidly, the report flags persistent structural challenges. Rural areas -- where nearly two-thirds of India’s population lives -- have access to just 30% of the country’s hospital beds.
Bed density remains at 1.6 per 1,000 people, below the World Health Organization’s recommended minimum of 2. Nurse density is also lagging, at 1.9 per 1,000 compared to the WHO benchmark of 3. India will need to add 650,000 nurses and 160,000 doctors by 2030 to meet demand.
At the same time, non-communicable diseases (NCDs) such as diabetes and hypertension are surging. Diabetes currently affects nearly 90 million people, projected to rise to 156.7 million by 2050, while hypertension affects nearly one-third of adults.
Despite these headwinds, India's cost advantage remains its most compelling strength. Surgical procedures are priced far below Western standards, making the country a major draw for medical tourism for people from many parts of the world.
A heart bypass in India costs between USD 4,000–6,000, compared to USD 80,000–120,000 in the U.S., USD 25,000–40,000 in the UK, and USD 30,000–45,000 in Australia. Hip and knee replacements, and even complex surgeries like spinal fusion, cost one-tenth to one-fifteenth of what they do in developed markets.
This unmatched affordability, combined with NABH-accredited hospitals, shorter wait times, and English-speaking medical staff, has fueled a surge in foreign patient inflows — from 6.1 million in 2023 to 7.3 million in 2024. The country’s medical tourism market, valued at USD 7.7 billion in 2024, is projected to double to USD 16 billion by 2030.
Private sector investment has been another major growth driver. Capital inflows into hospitals surged from USD 0.73 billion in 2022 to nearly USD 6 billion in 2024, while FDI in healthcare rose 2.3 times to reach USD 1.56 billion in FY2025. Private healthcare operators are set to add 34,000 new beds by FY2029, backed by INR 400 billion in planned investments. Notably, 40% of this expansion is being directed toward Tier-II and Tier-III cities, including Patna, Lucknow, and Bhubaneswar — a sign of the sector’s decentralization and growing regional focus.
At the same time, digital health is fast emerging as a cornerstone of the sector’s future. The digital health market, worth USD 8.8 billion in 2024, is expected to grow more than fivefold to USD 47.8 billion by 2033. Flagship government platforms like the Ayushman Bharat Digital Mission and e-Sanjeevani have created a strong digital infrastructure for teleconsultation, e-records, and remote diagnostics. AI is increasingly being used in hospitals for imaging, robotic surgery, and neonatal care. Examples include AIIMS Nagpur’s tele-neonatal unit, which halved infant mortality, and IMS-BHU’s AI-based imaging system, which saved INR 20 million annually.
On the insurance front, premiums hit INR 1.18 trillion in FY2025, though growth slowed to 9%. The proposed removal of GST on health insurance is expected to ease costs and expand coverage, especially among middle- and lower-income groups.
While India’s healthcare story is still unfolding, the sector’s combination of affordability, innovation, and private capital is turning it into a global hub for patients, investors, and technology alike. With targeted reforms and capacity-building, India is positioning itself not just to meet domestic demand but to emerge as a world leader in accessible, technology-driven healthcare.
