Health insurance coverage in India projected to reach 50% by 2025

Yet, rural healthcare infrastructure and trained talents remain key challenges.

India allocates about 3.3% of its GDP to healthcare, with per capita expenditure estimated at around $80. But, healthcare infrastructure is expected to improve significantly by 2030

The improvement will be supported by structural developments such as the doubling of medical education seats, the expansion of hospital bed capacity, and growing insurance coverage, which currently covers about 40% of the population, CareEdge said. 

Increased public expenditure, rising private sector investments, and demographic changes are contributing to a broader transformation of the sector.

Despite these developments, rural healthcare infrastructure and the shortage of trained medical personnel remain key challenges in extending healthcare access across various population segments.

CareEdge Ratings projects substantial growth in India’s healthcare infrastructure and related workforce in the coming years, driven by supportive government policies and rising demand.

Whilst India’s overall population is forecast to grow by approximately 0.8% to 0.9% annually, the population aged 45 and above is expected to increase at a faster rate of around 2.5% to 3%. 

Health insurance coverage in India, including both public and private schemes, has more than doubled over the past decade, reaching roughly 40% in 2023. 

The recent extension of the Ayushman Bharat scheme to include individuals aged 70 and above is likely to raise overall health insurance coverage to around 50% by 2025.