India's hospital sector to sustain 11-12% growth, driven by insurance penetration and medical tourism: CareEdge
- IBEF
- January 2, 2026
The hospital industry in India has an optimistic future, with strong, sustained growth of 11-12% CAGR (compound annual growth rate), according to a recent report by CareEdge Ratings. Health insurance penetration continues to rise, there is a growing demand for quality healthcare in India, and India is becoming increasingly recognised as one of the world's leading centres for medical tourism. In 2024, over 700,000 medical tourists, many from Africa, West Asia, and South Asia, visited India to receive high-quality medical care at a fraction of the cost of similar services in advanced economies. Other structural drivers that will continue to support the Healthcare Ecosystem's increased capacity include an aging population, the rising prevalence of lifestyle and chronic diseases, and India's relatively low hospital bed density.
CareEdge Ratings further notes that the private sector will remain the key growth engine, supported by ongoing investments in new bed capacity, technology integration, and service diversification. Listed corporate hospital chains have displayed strong financial resilience, with hospital revenues growing at 15–16% CAGR over the past five years and expected to sustain 10–12% growth over the next two to three years. Operational metrics also remain healthy, with occupancy levels stabilising around 62–64%, steady improvement in Average Revenue Per Occupied Bed, and operating margins sustaining at 21–22%. Balance sheets have strengthened materially, with leverage declining sharply due to robust internal cash flows. Supported by favourable policy momentum, expanding insurance coverage, and rising domestic and international patient inflows, the Indian hospital sector remains firmly positioned for sustained growth, strengthening healthcare delivery and access nationwide.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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