India’s hospital industry is expected to see steady growth of 11–12% in the coming years, according to CareEdge Ratings. The growth will be driven mainly by rising health insurance coverage, increasing demand for quality healthcare, and India’s growing appeal as a medical tourism destination.
CareEdge noted that more than 7 lakh medical tourists visited India in 2024, especially from Africa, West Asia, and South Asia. Patients are drawn by the availability of high-quality treatment at much lower costs compared to developed countries. Other long-term factors supporting growth include an ageing population, a rise in lifestyle and chronic diseases, and low hospital bed availability in the country.
The report said the private sector will continue to lead expansion, with investments in new hospital beds, technology, and a wider range of services. Listed hospital chains have shown strong financial performance, with revenues growing 15–16% annually over the past five years and expected to grow 10–12% over the next two to three years.
Hospital operations remain stable, with occupancy levels at around 62–64%, improving revenue per bed, and operating margins of 21–22%. Strong cash flows have also helped hospitals reduce debt.
With supportive government policies, wider insurance coverage, and rising domestic and international patient numbers, CareEdge said India’s hospital sector is well placed for sustained growth and better healthcare access across the country.
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