India’s Private Hospital Market Set to Touch $200 Bn By 2030

Industry experts say the next five years could redefine how private healthcare operates in India, with increased capacity, better service delivery, and deeper tech integration transforming patient experience nationwide.

India’s private hospital sector is gearing up for major expansion, projected to reach nearly $202 billion by 2030, up from $122.3 billion in 2025, reflecting strong private investments, government support, and growing use of technologies such as AI and telemedicine.

Industry experts say the next five years could redefine how private healthcare operates in India, with increased capacity, better service delivery, and deeper tech integration transforming patient experience nationwide.

A mix of factors is fueling this surge, including rising healthcare demand, proactive policy initiatives, and the rapid embrace of telemedicine and artificial intelligence. Together, they’re driving operational efficiency, improved patient outcomes, and a stronger financial outlook for private players.

One of the biggest growth engines is medical tourism. India welcomed 7.3 million foreign patients in 2023–24, and the segment, valued at $8.7 billion in 2025, is expected to grow to $16.2 billion by 2030.

Affordable yet high-quality care and growing international collaborations continue to cement India’s global healthcare appeal.

Hospitals are also boosting efficiency through technology. The average revenue per occupied bed (ARPOB) is rising, while the average length of stay (ALOS) for leading hospital chains such as Max Healthcare and Fortis Healthcare is expected to reduce from 3–5 days to around 3.4 days. This improvement, experts note, stems from streamlined workflows, better diagnostics, and faster recovery processes enabled by digital tools.

Meanwhile, investors are showing record enthusiasm. The third quarter of the current calendar year saw 72 deals worth $3.5 billion, a 166 percent rise in total deal value over the previous quarter, underscoring strong investor confidence.

Rajeev Sharan, Head of Research at Brickwork Ratings, maintained a “Positive” outlook on the private hospital industry’s credit ratings, citing strong demand, healthy financial performance, effective risk management, and aggressive expansion strategies by leading healthcare chains.

With steady capital inflow, rising patient volumes, and expanding medical infrastructure, India’s private hospital sector appears well-positioned to become a $200 billion powerhouse by the end of the decade.

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