Healthcare & Wellness
The Healthcare industry in India comprises of hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, and medical equipment.
The industry is growing at a tremendous pace owing to its strengthening coverage, services and increasing expenditure by public as well as private players.
Growing incidence of lifestyle diseases, rising demand for affordable healthcare delivery systems due to the increasing healthcare costs, technological advancements, the emergence of telemedicine, rapid health insurance penetration and government initiatives like e-health together with tax benefits and incentives are driving the healthcare market in India.
The Indian government has been proactive in implementing policies to enhance healthcare infrastructure and make healthcare services more accessible and affordable.
The Indian healthcare market, which was valued at US$ 110 billion in 2016 is now projected to reach US$ 638 billion by 2025.
The healthcare sector, as of 2024, is one of India’s largest employers, employing a total of 7.5 million people.
A recent research report predicts that the integration of Artificial Intelligence (AI) within the Indian healthcare sector will create nearly 3 million new jobs by 2028.
Indian medical tourism market was valued at US$ 7.69 billion in 2024 and is expected to reach US$ 14.31 billion by 2029. According to India Tourism Statistics, around 634,561 foreign tourists came for medical treatment in India in 2023, which was nearly 6.87% of the total international tourists who visited the nation. With US$ 5-6 billion size of medical value travel (MVT) and 500000 International patients annually, India is among the global leader destinations for international patients seeking advanced treatment.
India is a preferred destination for Medical Value Travel (MVT) where patients from all over the globe come to "Heal in India" and is growing as huge opportunity area in the Healthcare market.
Availability of a large pool of well-trained medical professionals in the country.
The number of allopathic doctors with recognised medical qualifications (under the I.M.C Act) registered with state medical councils/national medical council increased to 1.3 million in November 2021, from 0.83 million in 2010.
In the Interim Union Budget 2024-25, the government allocated US$ 10.93 billion to the Ministry of Health and Family Welfare (MoHFW).
The Indian government is planning to introduce a credit incentive programme worth US$ 6.8 billion to boost the country’s healthcare infrastructure.
4,000 + Healthtech startups working in India
1.3 million Workforce of Allopathic Doctors in India
100% FDI is allowed under the automatic route for greenfield projects.
- The Indian government has laid out a vision to make India a global leader in the pharmaceutical sector by 2030, focusing on increasing the country’s exports and enhancing domestic manufacturing capabilities. With initiatives like the Pharmaceuticals Technology Upgradation Assistance Scheme (PTUAS) and the National Biotechnology Development Strategy, India is set to boost its pharma manufacturing capacity, improve access to affordable medicines globally, and foster innovation in biopharmaceuticals. Additionally, India is focusing on enhancing its role in providing affordable vaccines, which has gained even more significance in light of the global health crisis caused by the COVID-19 pandemic.
- Asia-Pacific: India has become a significant exporter of generic medicines to countries in the Asia-Pacific region. In 2024, India's pharmaceutical exports to the region were valued at around $6 billion. Countries like China, Japan, and Australia remain important markets for Indian pharmaceutical products. India's supply of generic medicines, including critical antibiotics, painkillers, and antidiabetic drugs, is in high demand. In addition to pharmaceutical exports, India has also been involved in health collaborations, providing expertise and supplies for vaccine distribution and healthcare system strengthening. India’s imports in the Asia-Pacific region are relatively lower, with a focus on sourcing raw materials for drug manufacturing, with figures estimated at around $2 billion for 2024.
- Gulf Region: The Gulf region, including countries like the UAE, Saudi Arabia, and Qatar, is another significant market for India’s pharmaceutical exports. In 2024, the value of pharmaceutical exports to the Gulf region was approximately $4 billion, with India supplying essential medicines for chronic conditions, such as cardiovascular diseases, diabetes, and cancer. India’s competitive pricing for generic drugs makes it a favored supplier in the Gulf, where the demand for affordable healthcare solutions is rising. India also imports medical equipment and raw materials for drug manufacturing from the Gulf, with an estimated value of $1 billion in 2024. As part of its future vision, India seeks to expand its footprint in the Gulf by increasing cooperation in areas such as biotechnology, drug regulation, and clinical trials.
- Europe: Europe remains one of India’s key export markets for pharmaceuticals. In 2024, India's pharmaceutical exports to Europe were valued at approximately $5 billion. India’s strength lies in supplying generic medicines, particularly to countries like Germany, France, and the UK, where healthcare systems are increasingly turning to generics to manage rising healthcare costs. India’s exports include not only generic medicines but also active pharmaceutical ingredients (APIs) used in drug production. India imports specialized medical devices, diagnostics, and raw materials from Europe, with figures estimated at $3 billion in 2024. The EU-India Free Trade Agreement (under negotiation) could further open avenues for trade and cooperation in the pharma sector by reducing tariffs and enhancing regulatory harmonization.
- Americas: The United States is by far the largest importer of Indian pharmaceutical products, accounting for over 50% of India’s total pharma exports. In 2024, India's pharmaceutical exports to the U.S. were valued at approximately $10 billion. India supplies a wide range of generic drugs to the U.S., including treatments for chronic illnesses, HIV, and cancer. The Indian government’s push to expand its global vaccine production capacity has also positioned India as a major supplier of vaccines to the U.S., including COVID-19 vaccines and routine immunizations. India also imports high-value medical devices and specialized drugs from the U.S., with trade figures in 2024 estimated at around $2 billion. By 2030, India aims to strengthen its pharmaceutical exports further, establishing stronger partnerships and increasing the availability of affordable medicines globally.
- Africa: India’s pharmaceutical exports to Africa in 2024 were valued at around $2 billion. India is one of the largest suppliers of essential medicines to the African continent, including antibiotics, antimalarial drugs, and vaccines. The Indian government has been involved in multiple initiatives to improve healthcare delivery in Africa, including partnerships for vaccine distribution and providing technical assistance in healthcare systems. India also imports raw materials from Africa, especially in terms of plant-based substances used in medicine production, with an estimated import value of $500 million in 2024. India’s pharmaceutical companies are likely to increase their investments in Africa, further boosting exports and providing affordable healthcare solutions.
CIS: The CIS region, including countries like Russia, Kazakhstan, and Uzbekistan, has seen growing demand for Indian pharmaceutical products. In 2024, India's pharmaceutical exports to the CIS region were valued at approximately $1.5 billion. India exports a variety of generic medicines, vaccines, and active pharmaceutical ingredients (APIs) to these countries. The Russian market remains a particularly strong partner for India, where generic medicines and vaccines are widely used. India also imports some pharmaceutical raw materials and medical devices from the CIS region, with import values estimated at $300 million for 2024. India is looking to deepen its ties in the CIS region by enhancing cooperation in drug manufacturing and healthcare innovation.