Healthcare expenditure in India is expected to surge from 3.3 per cent to 5 per cent of its GDP by 2030, according to a report released on Monday.
While global healthcare spending stands at about $10 trillion, India currently spends around 3.3 per cent of its GDP on healthcare. Its per capita expenditure remains low, at approximately $80.
The report by CareEdge Ratings indicated that with structural improvements — including the doubling of medical seats, increased insurance coverage (about 40 per cent of the population), and expanded hospital bed capacity — India’s healthcare infrastructure is expected to improve substantially by 2030.
“India’s lower per capita income compared to many other countries has been a key reason for underinvestment in healthcare infrastructure and lower healthcare spending,” the report said.
“However, the government has been stepping up its efforts to increase healthcare spending, which bodes well, especially for rural areas and weaker sections of society that are heavily dependent on public health services,” it added.
India’s health insurance coverage (public and private) has more than doubled over the past 10 years, reaching around 40 per cent in 2023, largely due to increased awareness and central and state-sponsored health insurance schemes.
Additionally, the recent expansion of the Ayushman Bharat scheme to cover citizens aged 70 years and above is expected to raise health insurance coverage to about 50 per cent by 2025.
India is projected to add around 25,000 to 30,000 hospital beds over the next three years, with investments from both public and private sectors.
Over the last decade, there has been substantial investment in medical education, resulting in the number of undergraduate and postgraduate seats in medical colleges nearly doubling.
The report further noted that the availability of doctors in the country will also improve, driven by more than 1 lakh undergraduate medical seats. “This may also help bridge the gap between the availability of healthcare professionals in rural and urban areas,” it said.
“India’s healthcare landscape is evolving rapidly. The government’s commitment to increasing healthcare spending, coupled with private sector participation, is laying a strong foundation for improved healthcare access and quality,” said Krunal Modi, Director, CareEdge Ratings.
“The doubling of medical seats, expanded health insurance coverage, and the continued addition of hospital beds are positive steps toward building a robust healthcare system. As we move forward, a balanced approach involving concerted efforts from both the public and private sectors will be essential in achieving our healthcare goals and delivering better health outcomes for all citizens,” he added.
(Inputs from IANS)