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Home Health

India’s healthcare spending expected to surge to 5 pc of GDP by 2030: Report

IANS by IANS
April 7, 2025
in Health
India’s healthcare spending expected to surge to 5 pc of GDP by 2030: Report
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New Delhi, April 7 (IANS) 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 on Monday.

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While global healthcare spending stands at about $10 trillion, India spends about 3.3 per cent of its GDP on healthcare. Its per capita expenditure stands at only around $80.

The report by CareEdge Ratings showed that with structural improvements, including doubling the number of medical seats, increasing insurance coverage (about 40 per cent of the population), and expanding 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 the healthcare infrastructure and lower healthcare spending,” said the report.

“However, the Government has been stepping up its efforts to increase healthcare spending, which bodes well, especially for rural areas and weaker sections of the society which are heavily dependent on public health services,” it added.

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India’s health insurance coverage (public and private) has more than doubled over the last 10 years, reaching about 40 per cent in 2023, largely due to increased awareness and central and state-sponsored health insurance schemes.

In addition, the recent expansion of the Ayushman Bharat scheme to cover citizens aged 70 years and above is likely to expand health insurance coverage to about 50 per cent in 2025.

India is expected to add about 25,000 to 30,000 hospital beds over the next three years, with investment from both the public and private sectors.

Over the last decade, there has been a substantial investment in medical education, resulting in the number of undergraduate and postgraduate seats in medical colleges almost doubling.

Further, the report noted that the availability of doctors in the country will also improve, driven by more than 1 lakh undergraduate medical seats. “This may also bridge the gap somewhat between the availability of healthcare professionals in rural areas 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 continued addition of hospital beds are positive steps towards building a robust healthcare system. As we move forward, a balanced approach that incorporates 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.

–IANS

rvt/

*Except for the headings & sub-headings, this story has not been edited by The enewstime.in and has been published from IANS feed.

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