India’s healthcare spend to hit 5% of GDP by 2030

India’s healthcare sector is on the brink of a major leap. With spending set to rise from 3.3% to 5% of GDP by 2030, the country is entering a new era of healthcare transformation—powered by rising demand, strategic investments, and bold policy shifts. A recent CareEdge report captures this momentum, highlighting both the opportunities and the urgent need for inclusive, system-wide reforms.

India’s healthcare sector is poised for substantial growth, with expenditure expected to rise from 3.3% to 5% of GDP by 2030, according to a recent CareEdge report. This projected surge reflects a broader transformation driven by increased public and private investments, supportive policy measures, and demographic shifts. The sector stands at a pivotal point, with opportunities emerging across the value chain—from infrastructure development to medical education and digital healthcare technologies.

As of 2022, healthcare spending accounted for 3.3% of India’s GDP. Krunal Modi, Director at CareEdge Ratings, emphasized the rapid evolution of India’s healthcare landscape. He noted that the government’s intent to boost spending, in collaboration with growing private sector involvement, is establishing a strong foundation for better access and quality of care. Key developments such as the doubling of medical seats, wider health insurance coverage, and the ongoing addition of hospital beds are strengthening the system’s capacity.

Despite this momentum, challenges remain- particularly the unequal distribution of healthcare infrastructure and workforce between urban and rural areas. The report highlights the need for strategic efforts to bridge these gaps, especially in retaining skilled medical professionals in underserved regions. Ensuring adequate compensation and improving living standards in rural and semi-urban zones will be crucial to achieving healthcare equity.

Demographics are also playing a key role. With the share of the population aged over 45 steadily increasing, and rising incomes across segments, demand for quality healthcare services is set to climb. This demand is expected to fuel sustained investments across the healthcare spectrum. The report stresses that medical education, workforce training, and technological adoption must keep pace to support this growth.

Going forward, a balanced public-private approach is essential. The report recommends focusing on equitable resource allocation, strengthening public healthcare systems, and ensuring long-term workforce retention. With the right strategies in place, India can build a resilient and inclusive healthcare ecosystem capable of delivering improved outcomes for all citizens.