India’s Healthcare Sector Projected to Reach $700 Billion by 2030

India’s healthcare sector is expected to grow to USD 700 billion by 2030, up from approximately USD 300 billion in FY25, according to a report by Praxis Global Alliance in collaboration with NATHEALTH. However, the report notes that the country’s healthcare financing framework remains fragmented and underpenetrated.

Titled India Health Financing Position Paper 2026, the report highlights that while India carries nearly 20% of the global disease burden, it accounts for only about 1% of global health spending. It also estimates that more than USD 200 billion in investments will be required in healthcare infrastructure by 2035.

Speaking at a virtual conference, NATHEALTH President and Promoter and Executive Chairperson of Metropolis Healthcare Ltd, Ameera Shah, said, "We cannot have a 'Viksit Bharat' without a Swasth Bharat".

She further emphasized the importance of collaboration, adding that partnerships between the public and private sectors will be critical in transforming healthcare delivery across the country.

"Private healthcare is providing healthcare for the majority of Indians today, and the government does its great bit in rural India, in all parts of the country. So, bringing the knowledge and wisdom of both together is what is going to create magic," Shah added.

The report noted that out-of-pocket expenditure continues to account for around 44% of total health spending in India, among the highest globally. While about 60% of the population has some form of insurance coverage, only 20% is through private insurance, with the remaining 40% covered under government schemes.

Approximately 430 million Indians remain outside effective coverage, falling into a gap where they are ineligible for public schemes yet unable to afford private insurance.

"By expanding private insurance penetration and leveraging digital health infrastructure, we can reduce the financial shock of medical emergencies for millions of families," Shah said.

NATHEALTH President Elect and Joint Managing Director of Apollo Hospitals, Sangita Reddy, highlighted the sector’s evolving role, stating, "Healthcare is at a tremendous inflection point, one from being considered a cost centre to being considered a socio-economic engine, driving productivity, driving employment and driving the positive well-being of the country".

She further noted that improvements in clinical capabilities and infrastructure have positioned India as a global healthcare provider.

"We are being considered as a potential contender that India will be not only the pharmacy of the world, but the healthcare service provider of the world," Reddy said.

The report also pointed to workforce and infrastructure gaps, with India currently having 0.9 doctors, 1.8 nurses, and 1.6 hospital beds per 1,000 population. By 2035, the country will require an additional 1 million doctors, 3.5 million nurses, and 1.45 million hospital beds.

It also flagged the rising burden of non-communicable diseases, growing at a CAGR of 2.9%, with onset occurring 10–15 years earlier than global averages, further increasing pressure on the healthcare system.