Size of healthcare market in India FY 2023-2028, by sector

The healthcare delivery (hospitals) sector was valued the highest among the different Indian healthcare sectors in the financial year 2023. The diagnostics sector followed with a market size of 55 billion U.S. dollars. The healthcare market overall was valued at over 200 billion dollars for the same year.

Private hospitals dominate healthcare delivery

The private sector's prominence in India's healthcare system is evident, with 65 percent of treatment value being provided by private hospitals in 2022. This stark contrast to government hospitals, which contributed only 35 percent, highlights the growing reliance on private healthcare services. The shift towards private facilities for both inpatient and outpatient care is largely attributed to the relatively low government healthcare expenditure, pushing patients to seek alternative treatment in the private sector. 

Diagnostics sector set for rapid expansion

The diagnostics sector, the second-largest segment of India's healthcare market, is also on track for substantial growth. Valued at 55 billion U.S. dollars in 2023, it is forecast to reach 98 billion by 2028. This growth is driven by increasing awareness of preventive healthcare and advancements in diagnostic technologies. The sector is further divided into pathology and radiology segments, catering to diverse diagnostic needs.