Healthcare and Pharmaceuticals
India’s healthcare sector is one of the fastest-growing industries, driven by increasing life expectancy, rising income levels, growing health awareness, and greater access to insurance. Valued at over $372 billion in 2022, the sector is projected to reach $638 billion by 2025, fueled by public and private investment, innovation, and digital transformation
/ Overview of India's Healthcare and Pharmaceuticals Sector
Healthcare infrastructure—both urban and rural—is witnessing major developments. The Indian government’s flagship programs like Ayushman Bharat, and rising demand for telemedicine and diagnostics are driving growth across the ecosystem. India is also becoming a hub for medical tourism, with over 2 million patients visiting annually due to affordable, high-quality care.
3rd
Largest Biotech hub in Asia Pacific
$55 bn
Market Size
$1.5 bn
FDI (till Dec 2024)
9.4%
Economic Growth Rate
/ Growth Drivers
Market Expansion India’s healthcare market is projected to grow from USD 372 billion in 2023 to USD 638 billion by 2025 — a CAGR of approximately 22.5%.
Government Investment The Union Health Ministry’s budget for FY 2024-25 increased by 12.6% to USD 10.89 billion, supporting infrastructure upgrades and broader health coverage.
Aging Population Life expectancy in India is expected to rise from 67 years (2021) to 84 years (2045), accelerating demand for elderly care and chronic disease management.
Technology & Digital Health India’s telemedicine market is forecasted to reach USD 5.4 billion by 2025, growing at 31% CAGR. AI in healthcare is expanding rapidly, with a projected annual growth rate of 45%.
Medical Tourism Currently valued at USD 7.69 billion, India’s medical tourism sector is set to hit USD 14.31 billion by 2029, owing to cost-efficient, quality treatment options.
/ Key Investment Opportunities
Healthcare Infrastructure
∕ Expansion of tertiary care hospitals and specialty clinics in Tier 2 & Tier 3 cities
∕ Strong demand for modular hospitals and emergency care facilities
∕ Government focus on strengthening primary healthcare under Ayushman Bharat
∕ Public-Private Partnerships (PPPs): Government incentivizing private players to build and manage healthcare facilities.
Digital Health, Pharmaceuticals & Biotech Opportunities
∕ Telemedicine boom: Strong growth in platforms, AI diagnostics, and EMR adoption driven by digital healthcare expansion.
∕ NDHM initiative: National Digital Health Mission aims to build a unified digital health ecosystem, boosting tech integration.
∕ Pharma strength: India ranks 3rd globally in pharmaceutical production by volume, offering large-scale manufacturing potential.
∕ Strategic potential for foreign collaborations in R&D, tech transfer, and contract manufacturing.
Medical Devices & Equipment
∕ High growth in diagnostic imaging, IVDs, and homecare devices
∕ India aims to reduce import dependency; PLI Scheme for Medical Devices offers production-linked incentives
∕ Regulatory reforms (CDSCO) simplify product approvals for foreign players.
∕ Booming medical tourism boosts demand for high-end equipment.
/ Biotech growth: High potential in biosimilars, generics, and vaccine development with rising global demand and R&D support.
/ How We Can Help
Foreign businesses seeking to enter or expand in India’s Healthcare and Pharmaceuticals market can benefit from:
NEWS & UPDATES
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