The Indian hospital industry accounting for 80% of the total healthcare market, is expected to touch US$ 132 billion by 2023. The healthcare sectors in India and Australia are important industries that contribute to their respective economies. There are opportunities for investment and collaboration in both countries, particularly in areas such as hospitals, medical devices, pharmaceuticals, and diagnostics. Although the fact is that we will be a niche player in a broad market,

Australia has capabilities that coincide with India’s aims for developing the industry. Australia has several opportunities for exports of goods and services to India, such as co-product development, value chain integration, and regulatory alignment.






The nation’s healthcare is one of the largest sectors in terms of revenue and employment. Which comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The sector is getting bigger rapidly due to its strengthening coverage, services, and increasing expenditure by the public also private players, and it also includes a wide range of services and products, including hospitals, medical devices, pharmaceuticals, and diagnostics. The distribution system of this sector is categorised into two major components – public and private. The government, which is the public healthcare system, embraces limited secondary and tertiary care institutions in key cities and focuses on laying out basic healthcare facilities in the form of primary healthcare centres (PHCs) in rural areas. On the other hand, the private belt provides a majority of secondary, tertiary, and quaternary care institutions with a prime concentration in metros. The aggressive advantage lies in its vast pool of competent medical professionals. It is also cost-competitive in this country compared to its peers in Asia and Western countries. The surgery cost in this country is about one-tenth of that in the US or Western Europe. The low cost of medical amenities has resulted in a hike in the country’s medical tourism. In addition, India has appeared as a focal point for R&D activities for international players due to its proportionately low cost of clinical research. It is also a significant exporter of generic drugs and medical devices, focusing on markets such as the United States and Europe.


The healthcare sector is also expected to record a treble hike, increasing at a CAGR of 22% between 2016–22 to reach US$ 372 billion in 2022 from US$ 110 billion in 2016. The healthcare infrastructure is expected to reach US$ 349.1 billion by FY22. India’s public spending on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21 and 1.3% in 2019-20, according to the Economic survey of 2022.

The premiums guaranteed by health insurance companies grew to Rs. 73,582.13 crores (US$ 9.21 billion) in FY22. The health sector has a 33.33% share in the total gross written premiums earned in the nation.
The medical tourism market was valued at US$ 2.89 billion in 2020 and is anticipated to reach US$ 13.42 billion by 2026.

According to India Tourism Statistics at a Glance 2020 report, nearly 697,300 foreign tourists came for medical treatment in India in FY19. Also, India has been ranked 10th in the Medical Tourism Index (MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association. By 2025, The e-health market dimension is estimated to reach US$ 10.6 billion.

According to the information provided by the Minister of Health & Family Welfare to the Lok Sabha, the doctor population ratio in the country is 1:854, presuming 80% availability of 12.68 lakhs of allopathic doctors registered and 5.65 lakh AYUSH doctors. A rapidly growing consumer class can spend on healthcare. Also, expanding the infiltration of insurance enables more spending. India could become an enormous market for complementary medicines if commerce is uplifted by strict regulatory frameworks. And also, the country’s demand is increasing due to urbanisation.


Some of the recent developments in the Indian healthcare industry are as follows:

  • The FDI inpouring for the drugs and pharmaceuticals sector stood at US$ 19.90 billion, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and June 2022.

  • More than 219.88 crores of COVID-19 vaccine doses have been administered as of November 24, 2022, across the nation. Also, India has exported 28.13 crore vaccine doses.

  • Abbott, a multinational healthcare company, has committed to converting 75 Primary Health Centers (PHCs) to Health and Wellness Centers (HWCs) in nine Indian States in cooperation with Americares India Foundation, a nonprofit organisation dedicated to relief and development in the area of health. This will benefit over 2.5 million people from under-resourced communities every year.

  • Startup HealthifyMe, with a total user base of 30 million people, tallying half a million new users every month and surpassed US$ 40 million ARR in January 2022.

  • In August 2022, Edelweiss General Insurance collaborated with the Ministry of Health, Government of India, to help the country’s citizens generate their Ayushmann Bharat Health Account (ABHA) number.

  • In India, the healthcare and pharmaceutical sector had M&A activity worth US$ 4.32 billion in the first half of 2022.

  • The number medical colleges in India stood at 612 as of July 2022.

  • The Indian Council of Medical Research (ICMR) declared standard treatment guidelines for 51 common illnesses across 11 specialities to help doctors, particularly in rural regions. And diagnose, treat, or refer patients in time for improved treatment outcomes in July 2022.

  • Also, the National Pharmaceutical Pricing Authority (NPPA) fixed the retail prices for 84 drug

    formulations, including those used for treating diabetes, headache, and high blood pressure. •

  • In December 2021, Eka Care became the first CoWIN-approved organisation in India, through which users could book their vaccination slot, download their certificate and even create their Health IDs.

  • 80,136 Ayushman Bharat Health and Wellness Centres (AB-HWCs) are operational in India. as of November 18, 2021.

    India’s healthcare market will continue to rise due to a large and increasing population. And the double burden of infectious and non-communicable diseases.


Few of the major initiatives taken by the Government of India to promote the Indian healthcare industry are as follows:

  • In the Union Budget 2022-23, Rs. 86,200.65 crore (US$ 11.28 billion) was allocated to the Ministry of Health and Family Welfare (MoHFW).

  • Rs. 5,156 crore (US$ 675.72 million) was allocated to the newly announced PM-ABHIM to strengthen the nation’s health infrastructure and develop primary, secondary and tertiary care services.

  • Medical Education and Human Resources for health was allotted Rs. 7,500 crore (US$ 982.91 million).

  • Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) was allotted Rs. 6,412 crore (US$ 840.32 million).

  • The Government approved continuation of ‘National Health Mission’ with a budget of Rs. 37,000 crore (US$ 4.85 billion).

  • Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was allocated Rs. 10,000 crore (US$ 1.31 billion)

  • The World Bank sanctioned a US$ 1 billion loan towards India’s Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission in July 2022.

  • The government of India is extending the e-medical visa facility to the citizens of 156 countries to promote medical tourism in the country

  • In July 2021, the Union Cabinet approved the MoU between India and Denmark on cooperation in health and medicine. The agreement will focus on joint initiatives and technology development in the health sector to improve the public health status of the population of both countries.

  • Also, the Ministry of Health and Family Welfare, in partnership with UNICEF, held a capacity-building workshop for media professionals and health correspondents in Northeastern states on the current COVID-19 situation in India to bust myths regarding COVID-19 vaccines & vaccination and reinforce the importance of COVID-19 Appropriate Behaviour (CAB) in June 2021.


India’s healthcare sector is extremely varied and filled with opportunities in every segment. Which includes providers, payers, and medical technology. With the rise in competition, businesses are looking to explore the latest dynamics and trends, which will have a beneficial impact. The hospital industry of the country is predicted to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%.

The Government aims to develop India as a global healthcare hub and is also fore-thinking to increase public health spending to 2.5% of the country’s GDP by 2025. India, a homeland full of opportunities for players in the medical devices industry, has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities. Thus catering to a broader proportion of the population. In addition, Indian medical service consumers have become more conscious towards their healthcare upkeep. Rising income levels, an ageing population, growing health awareness and a changing attitude towards preventive healthcare are expected to boost healthcare services demand in the future. Greater penetration of health insurance aided the rise in healthcare spending, a trend likely to intensify in the coming decade.

Australia ought to concentrate on developing nations that are dedicated to healthcare reform and where we can leverage our relative advantages in NCDs. Australia has a strong reputation for research and development in the healthcare sector, with a focus on innovation and quality. The sector is also expected to benefit from government initiatives such as the Medical Research Future Fund, which aims to support research and development in the healthcare sector.