Mumbai, Nov 27 || The Indian healthcare sector is growing rapidly and is projected to reach $638 billion by 2025, according to a report.
Valued at $110 billion in 2016, the Indian healthcare market reached $372 billion in 2023, marking a 22.5 per cent CAGR growth during this period, revealed the report by Bajaj Finserv AMC.
Overall, the sector has seen a 17.5 per cent CAGR growth in the last decade. The report identified large-scale innovation in hospitals, pharmaceuticals, diagnostics, and other industries as primary drivers behind the growth.
“The sector has experienced a massive surge in private healthcare spending during and post-Covid-19, with the hospital market size growing from $62 billion in 2020 to $132 billion in 2023. In pharmaceuticals, India emerged as a global vaccine hub, led by organisations like the Serum Institute and Bharat Biotech,” said Sorbh Gupta, Senior Fund Manager - Equities, Bajaj Finserv AMC.
“In diagnostics, a core shift occurred towards digital diagnostics, while demand for home testing kits accelerated post-pandemic. In addition, the functional foods and personalised nutrition market is growing at a 16 per cent CAGR and is expected to reach $12 billion by 2027. Meanwhile, the fitness and wellness industry are projected to grow at a 27 per cent CAGR, reaching $12 billion by 2025,” he added.