Healthcare Industry in India

Investments/ Developments

• In Union Budget 2026–27, the Government of India allocated a record Rs. 1,06,530.42 crore (US$ 12.05 billion) to the Ministry of Health and Family Welfare (MoHFW), marking a ~10% increase over the previous year, with Rs. 1,01,709 crore (US$ 11.51 billion) earmarked for the Department of Health and Family Welfare.
• The Department of Health Research received Rs. 4,821 crore (US$ 0.55 billion), reflecting a ~23% increase, while continued focus on schemes such as AB-PMJAY and ABDM highlights the government’s commitment to reducing out-of-pocket expenditure and strengthening digital health infrastructure.
• The budget also increased allocations under PMSSY and related schemes to modernise healthcare institutions and expand clinical training capacity, with plans to add 10,000 medical seats in the short term and up to 75,000 seats over five years.
• To boost India’s position as a global medical tourism hub, the government proposed a scheme to establish five Regional Medical Hubs in partnership with the private sector, integrating medical, educational, and research facilities along with AYUSH centres and medical value travel infrastructure.
• Healthcare demand in Tier II and Tier III cities is projected to grow at 16-18% CAGR over the next few years, higher than the 12-14% CAGR in metros, showing continued momentum beyond 2025.
• Tier II cities are expected to add 40 million people by FY27, while 70% of hospitals are already empanelled under Ayushman Bharat as of 2025, improving access and accelerating infrastructure expansion toward FY27.
• As on November 20, 2025, a total of 51,36,284 Reproductive and Child Health (RCH) IDs have been linked with ABHA IDs, including 16,18,209 linked through new ABHA ID creation and 35,18,075 using existing ABHA IDs.
• In Q3 2025, Healthcare attracted Rs. 4,435 crore (US$ 500 million) in PE-VC investments.
• India's seven standalone health insurance companies (SAHIs) have captured 41% market share of the non-life insurance sector as of April-December FY25, up from 30% in FY20, driven by superior product innovation and customer support. Standalone health insurers are projected to achieve 20–21% growth in FY 2026, outpacing general insurance growth of 13%, driven by retail expansion and enhanced agency networks.​
• India’s health-tech sector is projected to reach Rs. 4,43,500 crore (US$ 50 billion) by 2033, driven by AI and automation, supporting faster claim decisions and smarter underwriting.
• In H1 2025, the Indian health-tech startups received Rs. 7,095 crore (US$ 828 million) in funding, a sign of continued investor confidence in the sector.
• In January 2025, Innovaccer Inc. raised Rs. 2,356 crore (US$ 275 million) in a Series F round to scale its Healthcare Intelligence Cloud, build new AI- and cloud-capabilities (like copilots/agents for clinical decision support, utilization management etc.), expand its developer ecosystem, and deepen collaboration with its 130+ healthcare customers.
• In Q1 2025, Mergers and acquisitions (M&A) accounted for 57% of the total deal value, while private equity (PE) made up 59% of the overall deal volume in the pharma and healthcare sector.
• On September 9, 2025, Apollo Hospitals announced it will acquire a 31% stake in Apollo Health and Lifestyle Ltd for Rs. 1,254 crore (US$ 146 million). Upon completion of the proposed acquisition, AHLL will become a 99.4% Subsidiary of Apollo Hospitals.
• The Indian healthcare sector is witnessing unprecedented growth, with private equity investment in Indian healthcare surging to Rs. 4,900 crore (US$ 572 million) across 33 deals in Q2 CY25.
• On July 9, 2025, Manipal Hospitals signed definitive agreements to acquire Pune-based Sahyadri Hospitals from Ontario Teachers’ Pension Plan for Rs. 6,000 crore (US$ 679.15 million), strengthening its presence in western India and expanding its multi-specialty hospital network.
• India’s health-tech sector is poised for strong growth, with healthcare hiring intent rising to 52% in H1 2025, up 5% from H2 2024, driven by demand for digital health, diagnostics and specialised care roles.
• Apollo Hospitals, and the University of Leicester have established the Centre for Digital Health and Precision Medicine in Chittoor, Andhra Pradesh. This initiative seeks to transform healthcare by advancing research and education in digital health, precision medicine, and specialized healthcare programs.
• Iswarya Hospital launched in Chennai with twelve-story building features 14 operational rooms and 72 clinical service departments. It is equipped with AI-powered CT and MRI machines, a catheterization lab, advanced surgical interventions, and specialized therapies in cardiology, orthopedics, and neurology.
• In February 2025, Metropolis Healthcare has partnered with Roche Diagnostics India to launch a self-sampling HPV DNA test for cervical cancer screening. This innovative test empowers women to take charge of their health by allowing them to collect their samples for testing in a comfortable and convenient manner.
• Tata Group has partnered with the Indian Institute of Science (IISc) to establish Tata IISc Medical School at the institute’s Bengaluru campus and will contribute Rs. 500 crore (US$ 57.6 million) to support it.
• The Indian medical devices sector has witnessed remarkable growth in recent years and is expected to reach Rs. 4,34,350 crore (US$ 50 billion) by FY31 driven by increasing demand for quality healthcare, advancements in technology, and favourable government policies. Start-ups in this sector have been instrumental in fostering innovation, improving accessibility, and reducing costs.
• In 2024, DNA Wellness announced a Rs. 200 crore (US$ 23.98 million) investment to establish over 100 cervical cancer screening labs across India by 2027. They have exclusive rights to the CERViSure DNA Ploidy Test, a quick and non-invasive cancer detection method. The first lab opened in Ahmedabad, with more planned in Vadodara, Rajkot, and Surat by October 2024. This initiative aims to improve access to cervical cancer screening, addressing the significant health burden of approximately 130,000 new cases and 80,000 deaths annually in India.
• Apollo 24|7 has merged with Keimed in a Rs. 2,475 crore (US$ 296 million) deal, with Advent International acquiring a 12.1% stake in the new entity valued at Rs. 22,481 crore (US$ 2.69 billion). Apollo Hospitals will maintain a majority stake of at least 59.2%.
• DocPlix, a health-tech startup, raises Rs 1.2 crore (US$ 0.14 million) in a bridge round led by Inflection Point Ventures (IPV), aiming to digitize health records for India's 1.4 billion population and enhance healthcare accessibility.
• IIT Bombay partners with Blockchain for Impact (BFI) to receive a US$ 900,000 investment aimed at developing affordable healthcare technologies, as part of a broader US$ 15 million BFI-Biome initiative to address urgent health challenges and advance biomedical innovation.
• In May 2023, Temasek, a Singaporean investment company, invested US$ 2 billion in Manipal Health Enterprises, a leading healthcare provider in India, highlighting the growing interest in the Asian healthcare market.
• In September 2023, Nirma a diversified Indian conglomerate, acquired a 75% stake in Glenmark Life Sciences, a pharmaceutical company, for US$ 689 million. This transaction marked one of the biggest Indian healthcare M&A deals of the year.
• As of August 1, 2023, a total of 24.33 crore Ayushman cards have been created. To prevent, detect, and deter healthcare fraud and to ensure that eligible beneficiaries receive adequate treatment, the Government of India is using Artificial Intelligence (AI) and Machine Learning (ML). As of October 2023, a total of 26 crore Ayushman cards have been created.
• As of February 20, 2023, more than 220.63 crore COVID-19 vaccine doses have been administered across the country. While as of May 11, 2023, more than 2.20 billion COVID-19 vaccine doses have been administered across the country.
• As of July 15, 2023, India has exported 30.12 crore vaccine doses.
• Multinational healthcare company Abbott has committed to converting 75 Primary Health Centers (PHCs) to Health and Wellness Centers (HWCs) in nine Indian States, in collaboration with Americares India Foundation, a nonprofit organisation dedicated to relief and development in the field of health. This will benefit over 2.5 million people from under-resourced communities every year.