India faces a two-million-bed shortfall, with 65–70% in urban areas, despite most people living in rural regions
Mumbai
India’s hospital sector is expected to record steady and strong growth over the next three to five years, with revenues likely to rise by 11 to 12 per cent annually, according to a new report by CareEdge Ratings. The report said growth will be driven by rising healthcare needs, wider health insurance coverage, growing medical tourism, and fresh investments in hospital infrastructure across the country.
A major factor supporting this outlook is India’s shortage of healthcare facilities. While the country accounts for nearly 18 per cent of the global population, it has only about 16 hospital beds per 10,000 people, far below the World Health Organisation’s suggested level of 30 beds.
This gap translates into a shortfall of nearly two million hospital beds, creating sustained demand for new hospitals, expansions, and modern healthcare services over the long term. The report also points to a clear urban rural divide. Around 65 to 70 per cent of hospital beds are concentrated in urban areas, even though nearly two thirds of Indians live in rural and semi urban regions.
With public healthcare spending limited to roughly 2 to 4 per cent of gross domestic product, the private sector is expected to shoulder much of the expansion. Private hospital chains are therefore likely to gain the most from rising demand.
Demographic trends are adding momentum. An ageing population is increasing the need for chronic care, specialised treatment, and preventive services. Health insurance coverage has expanded rapidly, rising from about 20 crore people in 2014 to nearly 55 crore people in 2024 and this trend is expected to support future hospital demand.
