Healthcare Market in India 2024-2029

The healthcare market in India comprises companies offering healthcare services and related products, including hospitals, pharmaceuticals, medical equipment and supplies, diagnostic services, telemedicine, and medical insurance. In India, the healthcare industry is divided into primary, secondary, and tertiary healthcare tiers. These tiers of healthcare services are made available through a combination of public and private healthcare providers.

Investments are being driven by the country's economic growth, business-friendly policies, and pharmaceuticals manufacturing landscape. The market is poised to grow on the back of specialized and higher quality healthcare facilities, increased incidence of lifestyle diseases, rapid health insurance penetration, and government initiatives.

Market trends:

With the growing number of medical colleges across India, regulating the quality of medical education is becoming increasingly important. The main emphasis is on enhancing the curriculum, faculty training, and accreditation processes to develop skilled and compassionate healthcare professionals. A key step forward is the government's recent mandate, starting in the 2024 - 25 academic session, requiring both government and private medical colleges to be evaluated by the Quality Council of India. This initiative aims to ensure accountability, uphold high standards, and help students make informed decisions about their medical education.

Market drivers:

India is transitioning from dealing primarily with communicable diseases to facing an increase in lifestyle-related illnesses. This shift has been driven by economic growth and urbanization, leading to a rise in demand for specialized healthcare services, diagnostics, and advanced medical devices. Increasing awareness about lifestyle diseases has also contributed to this trend, with people becoming more focused on healthy living and early detection. According to the 2024 GOQii India Fit Report titled “Thriving at Any Age: The Blueprint for Healthy Longevity”, 45% of Indians are at risk of being unhealthy. The report identifies common lifestyle diseases such as diabetes, high blood pressure, high cholesterol, and thyroid disorders.

Key deterrents to the growth of the market:

Many hospitals in India, especially in rural regions, often lack the necessary infrastructure to support advanced clinical systems. Challenges like inconsistent electricity, limited internet access, and outdated facilities present major obstacles. As of 2023, the private sector had approximately 1,185,242 beds and the public sector had around 7,13,986 beds. This means the country has an average of less than 1.4 beds per 1,000 people, much lower than the WHO standard norm of 3.5 beds per 1000 people. Lack of adequate funding leading to poor infrastructure continues to be a major challenge for the players in the country.