India’s healthcare sector stands at a pivotal inflection point, with the potential to transform into one of the world’s largest healthcare ecosystems by the end of the decade, said Aryaman Tandon, Co-Founder and Managing Partner, Praxis Global Alliance, while delivering the inaugural keynote on “India’s Vision 2030 – The Future of Health”.
Setting the tone for the day, Tandon described healthcare as one of the most transformational sectors for India, noting that the country has so far only “tapped the surface” of the opportunity the ecosystem is poised to create in the coming years. He highlighted that India’s healthcare market today is valued at nearly $300 billion—close to 10 per cent of GDP—but remains significantly underpenetrated when measured by per capita spending compared to global peers.
With India projected to become the world’s third-largest economy by 2030, Tandon argued that healthcare must mirror that ambition. “If healthcare grows to $700 billion, India would still rank only fifth or sixth globally. Given our population and disease burden, there is no reason why India cannot also become the third-largest healthcare ecosystem in the world,” he said.
Tandon pointed out that India accounts for nearly 20 per cent of the global disease burden but contributes just 1 per cent of global healthcare spending, underscoring the scale of untapped opportunity. He noted that India has already demonstrated its ability to deliver high-quality care at globally competitive costs, ranking among the most cost-efficient healthcare systems while maintaining strong quality benchmarks.
However, he cautioned that achieving a trillion-dollar healthcare economy would require addressing key structural challenges. Among the most pressing issues, he said, are fragmentation across the healthcare value chain, low insurance penetration, limited focus on preventive and primary care, inconsistent quality standards, and a shortage of infrastructure and skilled manpower.
Insurance coverage, in particular, emerged as a critical concern. India has only around 25 per cent insurance penetration, with a large section of the population dependent on government schemes. Unlike several emerging economies that have moved towards universal or mandatory coverage, India continues to struggle with the “missing middle,” limiting the flow of long-term capital into the sector.
Tandon also emphasised the need to shift from a sickness-led system to one focused on wellness and preventive care. India records among the lowest consultation and diagnostic testing rates globally, reflecting underinvestment in primary healthcare. Global evidence, he noted, shows that strong primary care systems improve outcomes while reducing overall costs.
On quality, he highlighted that fewer than 6 per cent of Indian hospitals are fully accredited, far behind countries with comparable income levels. Infrastructure gaps—ranging from doctors and nurses to hospitals and medical equipment—remain acute, especially in tier-2 and tier-3 cities, while metros face an oversupply.
Concluding his address, Tandon said sustained investment, regulatory reforms, and innovative financing models are essential to unlock the sector’s full potential. He added that platforms recognising excellence and innovation across healthcare, such as the event being inaugurated, are critical enablers in driving India’s healthcare transformation.
Tandon was delivering the inaugural address at the VOH National Healthcare Awards 2025, held at Hyatt Regency, New Delhi, on December 17, 2025, which brought together policymakers, healthcare leaders, providers and innovators to deliberate on the future of India’s healthcare ecosystem.
