India's healthcare market to grow at 9.3% CAGR by 2028

Policy continuity will drive near-term expenditure growth.

India’s healthcare market will grow at a compound annual growth rate (CAGR) of 9.3% until 2028, despite a slight decrease in its final healthcare budget for FY 2024/25.

BMI attributed the expansion to policy continuity in the near to medium term, supporting long-term goals such as advancing family and maternal health, enhancing the Ayushman Bharat insurance scheme, and improving infrastructure.

“These will be key drivers of public health expenditure growth, which we continue to expect will outpace private sector growth,” the report said.

Meanwhile, rising incomes, increased urbanisation, and expanding health insurance will fuel private expenditure growth.