Healthcare sector can touch $700B by 2030, but financing architecture fragmented: Report

India’s healthcare sector is likely to reach $700 billion by 2030, but its financing architecture remains fragmented and underpenetrated, with out-of-pocket spending still accounting for a large share of healthcare expenditure, according to a report.

The country’s healthcare ecosystem was valued at around $300 billion in FY25 and projected to reach $700 billion by 2030, but health financing remains underpenetrated, as per the report by Praxis Global Alliance, in collaboration with Nathealth. India carries 20 per cent of the global disease burden, but accounts for only 1 per cent of global health spending, said the report titled ‘India Health Financing Position Paper 2026’.

The country requires more than $200 billion in healthcare providers’ investment by 2035, with the sector generating 23-27 jobs per $1 million invested, it added.

Addressing a virtual conference, Nathealth President and Promoter and Executive Chairperson, Metropolis Healthcare Ltd, Ameera Shah said, “We cannot have a ‘Viksit Bharat’ without a Swasth Bharat”. How partnering with the Government and bringing public and private together is truly what is going to transform healthcare in India, she added.

“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.

As per the report, about out-of-pocket spending accounts for 44 per cent of health expenditure in India, which is among the highest globally, but 60 per cent of Indians are covered by some form of insurance, only 20 per cent is private insurance, with 40 per cent through Government schemes.

As many as 430 million Indians remain outside effective coverage — too affluent for public schemes yet unable to afford private insurance, it noted.

“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, Apollo Hospitals, Sangita Reddy said, “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”.

Stating that healthcare in India is at a significant inflection point because of the tremendous upskilling of its doctors and the enhancement of hospitals, she said India is “now delivering world-class outcomes at 1/10th of global prices”. “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, adding that there is more work to be done.

As per the report, India has 0.9 doctors, 1.8 nurses, and 1.6 beds per 1,000 people, requiring around 1 million doctors, 3.5 million nurses, and 1.45 million additional beds by 2035.It also highlighted the alarming growth in non-communicable diseases at 2.9 per cent CAGR, with onset 10-15 years earlier than global averages.