Healthcare clocked Rs. 2,61,900 crore (US$ 30 billion) investment in two years, says report

India’s healthcare and pharmaceutical sector attracted investments of Rs. 2,61,900 crore (US$ 30 billion) between 2022 and 2024, with hospitals emerging as a key investment segment, according to a joint report by Grant Thornton Bharat and the Association of Healthcare Providers of India (AHPI). The report highlights that hospitals in India recorded merger and acquisition (M&A) deals worth Rs. 58,840 crore (US$ 6.74 billion) and secured Rs. 43,310 crore (US$ 4.96 billion) from private equity (PE) investors, contributing 40% and 38% of total transactions, respectively. Additionally, hospitals raised Rs. 4,070 crore (US$ 466 million) through initial public offerings (IPOs), while foreign direct investment (FDI) in healthcare and diagnostics amounted to Rs. 27,140 crore (US$ 3.2 billion). 

The report identifies consolidation in multispecialty hospitals and increased technology integration as major investment drivers, enhancing operational scale and market presence. Investor interest in single-specialty hospital segments, particularly nephrology, oncology, and in-vitro fertilisation (IVF), led to PE investments of Rs. 12,220 crore (US$ 1.4 billion) over two years. Rising demand for high-quality healthcare, growing insurance penetration, and post-pandemic resilience are reshaping the industry. However, challenges persist, including the urban-rural bed disparity, with 60% of hospital beds concentrated in metropolitan cities. In comparison, 70% of the population resides in non-metro regions. Addressing these gaps through digital health adoption, rural healthcare expansion, and innovative financing models will be critical for ensuring equitable access to medical services across India. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.