The Tamesis
Health care spending in the federal budget for fiscal year 2026 increased by 9.8% year-over-year.
According to a report by CareEdge Ratings, the Indian hospital industry is expected to expand at a compound annual growth rate of up to 12% over the next three to five years.
The growth of the industry is attributed to the increasing government focus on healthcare services, rising prevalence of lifestyle-related diseases and infectious diseases, expansion of medical tourism, and rising disposable income.
Healthcare spending in the federal budget for fiscal year 2026 increased by about 9.8% year-on-year to $11.1 million (Rs 99,858 crore).
The industry has experienced a structural shift since the COVID-19 outbreak, characterized by increased health awareness, broader insurance coverage, wider acceptance of elective surgeries and gradual price adjustments, the report said.
However, despite India accounting for nearly a fifth of the global population, its healthcare infrastructure still lags behind global benchmarks.
Healthcare spending historically accounts for 2% to 4% of GDP, below the global average and significantly lower than in several emerging economies such as Brazil, Mexico, Russia and Thailand.
The report added: “Continued underinvestment has resulted in hospital bed densities being among the lowest in the world.
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