The Indian government spent *** percent of the country's GDP on healthcare in the financial year 2025. The government healthcare spending is forecasted to be *** percent of the GDP in the financial year 2026.

In the financial year 2024, the government health expenditure in India stood at approximately *** billion Indian rupees. About *** billion Indian rupees were spent on the National Health Mission. The total health expenditure is expected to reach above *** billion Indian rupees by fiscal year 2026 as per government budget estimates.

India: Health spending as percent of GDP: The latest value from 2021 is 3.28 percent, a decline from 3.34 percent in 2020. In comparison, the world average is 7.21 percent, based on data from 181 countries. Historically, the average for India from 2000 to 2021 is 3.55 percent. The minimum value, 2.86 percent, was reached in 2018 while the maximum of 4.26 percent was recorded in 2001.

In financial year 2024, the estimated total budget allotted for the Indian health sector amounted to about ****** billion Indian rupees. Since the financial year 2018, the allocation of the health budget has consistently increased. Healthcare in India The Indian healthcare system consists of a network of private and public healthcare sectors that offer a variety of medical services to over *** billion individuals. Most Indians prefer private healthcare over public healthcare in terms of hospitals, services, and physicians. Additionally, the overall size of the healthcare market stood at *** billion U.S. dollars in 2022 and is likely to grow in the future. A new horizon of opportunities and investments has emerged in pharmaceuticals, medical technology, and services for the advancement of this sector. Private healthcare expenditure Even though the government has increased the spending of country’s GDP spending on healthcare to over *** percent, patients pay for more than half of medical expenses directly at the time of treatment. As a result, the out-of-pocket expenses were roughly about ** percent of the current health expenditure in India. These expenditures still make up a large portion of health spending in the country.

The current healthcare spending per capita in India was forecast to continuously increase between 2024 and 2029 by in total 40.8 U.S. dollars (+47.71 percent). After the eleventh consecutive increasing year, the spending is estimated to reach 126.27 U.S. dollars and therefore a new peak in 2029. Depicted here is the average per capita spending, in a given country or region, with regards to healthcare. The spending refers to the average current spending of both governments and consumers per inhabitant.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the current healthcare spending per capita in countries like Pakistan and Sri Lanka.

IntroductionEvidence-based resource allocation may help to achieve immense health gains in resource-limited settings like India. Understanding healthcare expenditure and the corresponding disease burden could provide insights to plan optimal allocation of limited resources. Hence, we aimed to investigate the status and trends of state-wise healthcare budget allocation and the corresponding disease burden.MethodsWe retrieved state-wise healthcare budget allocation information in India for the years 2015 to 2019. Corresponding state-wise disability-adjusted-life-year (DALY) estimates from the Global Burden of Disease, injuries, and Risk Factors Study (GBD) was used to measure disease burden. The allocated budget (in rupees) per DALY was calculated for overall, communicable, and non-communicable diseases (NCDs). Descriptive statistics, correlation and graphical representations were used to identify and evaluate the trends and relationships between state-wise health budget allocation and disease burden.ResultsThe allocated budget per DALY in 2019 was highest for Goa ( 34,260 or US$ 486.66) and lowest for Bihar ( 2,408 or US $ 34.20). Smaller, less populous states had higher budget allocations per DALY than larger states. Health budget allocation had an inverse relationship with infectious diseases and an identical linear relationship with NCDs. Most state-wise health budget allocations, as well as total disease burden, increased over the years except for Assam, Karnataka, and Himachal Pradesh. Also, such trends are not similar for the injuries and NCD disease burden.DiscussionThe health budget allocation is variable across states as well as between infectious and NCDs. The current increase in the allocated budget is incongruent with the increasing disease burden. There is a need for rapid expansion of healthcare resource allocation guided by evidence in India.

The current healthcare spending in India was forecast to continuously increase between 2024 and 2029 by in total 66.6 billion U.S. dollars (+53.99 percent). After the eleventh consecutive increasing year, the spending is estimated to reach 189.8 billion U.S. dollars and therefore a new peak in 2029. According to Worldbank health spending includes expenditures with regards to healthcare services and goods. The spending refers to current spending of both governments and consumers.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the current healthcare spending in countries like Nepal and Bangladesh.

The Indian out-of-pocket healthcare market is poised for significant growth, driven by factors such as rising healthcare costs, an expanding elderly population, increasing prevalence of chronic diseases, and limited access to affordable health insurance. While precise figures for 2029 require a comprehensive market study, we can project a robust expansion based on observable trends. Assuming a conservative Compound Annual Growth Rate (CAGR) of 10% – a figure supported by the general growth in India's healthcare sector and increasing healthcare expenditure – and a 2025 market size of ₹5 trillion (approximately $600 billion USD, a reasonable estimate considering India's population and healthcare spending), the market in 2029 could reach approximately ₹8 trillion (approximately $960 billion USD). This significant growth will be fueled by escalating demand for private healthcare services, including specialized treatments and advanced medical technologies, which are frequently paid for out-of-pocket. However, this growth is constrained by several factors. Uneven income distribution across the population limits affordability for a significant portion, resulting in delayed or forgone healthcare. Government initiatives aimed at improving healthcare access and affordability, such as Ayushman Bharat, will influence market dynamics, potentially slowing the growth of out-of-pocket spending but also creating new avenues for private sector engagement. The market will likely witness a shift towards more affordable and accessible healthcare options to meet the demand of the burgeoning middle class, including the expansion of telemedicine and the adoption of preventative healthcare measures. Furthermore, innovative payment models and increased insurance penetration could gradually reduce the reliance on out-of-pocket expenses.

In the financial year 2024, the share of private healthcare expenditure is the highest, at approximately **********, across the country. Private healthcare spending includes multispeciality healthcare and single-speciality healthcare.

The northern state of Uttar Pradesh in India spent around 190 billion Indian rupees on public health in financial year 2018. This was the highest that any state spent on healthcare when compared to other states in the country that year. The western state of Maharashtra ranked second with a little over 122 billion rupees public health expenditure, while the state of Jharkhand had the lowest expenditure at around 31 billion rupees.

State governments responsible for public healthcare

State governments had a lion’s share of around 63 percent in the total public health expenditure in India, compared to around 37 percent by the central government as of fiscal year 2018. This is in lieu of the Indian constitution that places the primary responsibility of providing health care with respective state governments.

Budget outlays for health

India had one of the lowest expenditures on healthcare among 36 other OECD countries. While the United States spent about 17 percent of its GDP on healthcare, India spent just around three percent on health care in 2018. As a result, private healthcare sector has been booming and Indian citizens incur high out-of-pocket costs for healthcare. It is clear that India’s health financing is in need of better funding and resources to ensure healthcare remains affordable and accessible to all.

The global per capita consumer spending on healthcare in was forecast to continuously increase between 2024 and 2029 by in total 178.3 U.S. dollars (+21.56 percent). After the ninth consecutive increasing year, the healthcare-related per capita spending is estimated to reach 1,005.36 U.S. dollars and therefore a new peak in 2029. Consumer spending, in this case healthcare-related spending per capita, refers to the domestic demand of private households and non-profit institutions serving households (NPISHs). Spending by corporations and the state is not included. The forecast has been adjusted for the expected impact of COVID-19.Consumer spending is the biggest component of the gross domestic product as computed on an expenditure basis in the context of national accounts. The other components in this approach are consumption expenditure of the state, gross domestic investment as well as the net exports of goods and services. Consumer spending is broken down according to the United Nations' Classification of Individual Consumption By Purpose (COICOP). The shown data adheres broadly to group 06. As not all countries and regions report data in a harmonized way, all data shown here has been processed by Statista to allow the greatest level of comparability possible. The underlying input data are usually household budget surveys conducted by government agencies that track spending of selected households over a given period.The data is shown in nominal terms which means that monetary data is valued at prices of the respective year and has not been adjusted for inflation. For future years the price level has been projected as well. The data has been converted from local currencies to US$ using the average exchange rate of the respective year. For forecast years, the exchange rate has been projected as well. The timelines therefore incorporate currency effects.Find more key insights for the per capita consumer spending on healthcare in countries like Caribbean and Asia.

IntroductionAs high out-of-pocket healthcare expenses pose heavy financial burden on the families, Government of India is considering a variety of financing and delivery options to universalize health care services. Hence, an estimate of the cost of delivering universal health care services is needed. MethodsWe developed a model to estimate recurrent and annual costs for providing health services through a mix of public and private providers in Chandigarh located in northern India. Necessary health services required to deliver good quality care were defined by the Indian Public Health Standards. National Sample Survey data was utilized to estimate disease burden. In addition, morbidity and treatment data was collected from two secondary and two tertiary care hospitals. The unit cost of treatment was estimated from the published literature. For diseases where data on treatment cost was not available, we collected data on standard treatment protocols and cost of care from local health providers. ResultsWe estimate that the cost of universal health care delivery through the existing mix of public and private health institutions would be INR 1713 (USD 38, 95%CI USD 18–73) per person per annum in India. This cost would be 24% higher, if branded drugs are used. Extrapolation of these costs to entire country indicates that Indian government needs to spend 3.8% (2.1%–6.8%) of the GDP for universalizing health care services. ConclusionThe cost of universal health care delivered through a combination of public and private providers is estimated to be INR 1713 per capita per year in India. Important issues such as delivery strategy for ensuring quality, reducing inequities in access, and managing the growth of health care demand need be explored.

Healthcare IT Software Market Outlook

The global Healthcare IT Software market is poised for substantial growth, with market size projected to increase from $142.1 billion in 2023 to an estimated $320.5 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 9.4%. This growth is primarily driven by the increasing adoption of digital health solutions, advancements in healthcare technologies, and the ongoing need for efficient healthcare management systems.

A significant growth factor in the Healthcare IT Software market is the rising prevalence of chronic diseases and the subsequent need for effective patient management systems. With a growing aging population and the increased incidence of conditions such as diabetes, cardiovascular diseases, and cancer, the demand for comprehensive healthcare IT solutions is on the rise. These systems facilitate better patient data management, improve diagnostic accuracy, and streamline treatment processes, ultimately enhancing overall patient care.

Another crucial driver is the global push towards healthcare digitalization. Governments and healthcare organizations worldwide are increasingly investing in IT infrastructure to improve the efficiency and quality of healthcare services. Initiatives such as electronic health records (EHR) systems and telehealth solutions are being widely implemented to ensure better patient tracking, reduce medical errors, and provide remote healthcare services. This digital transformation is expected to significantly propel the market's growth in the coming years.

The COVID-19 pandemic has further accelerated the adoption of healthcare IT solutions. The urgent need for remote patient monitoring, telemedicine, and efficient data sharing systems has highlighted the critical role of IT in managing public health crises. The pandemic has underscored the importance of preparedness and has led to increased investments in healthcare IT infrastructure, which is expected to sustain market growth post-pandemic. Additionally, the integration of artificial intelligence and machine learning in healthcare IT software is creating new opportunities for innovation and improved healthcare delivery.

Regionally, North America holds a significant share of the Healthcare IT Software market due to the presence of advanced healthcare infrastructure, high healthcare expenditure, and early adoption of innovative technologies. However, the Asia Pacific region is expected to witness the highest CAGR during the forecast period, driven by increasing government initiatives for healthcare modernization, rising investments in healthcare IT, and a growing focus on improving healthcare services in emerging economies such as India and China.

IT Spending in Healthcare is becoming a pivotal aspect of the global healthcare landscape. As healthcare systems worldwide strive to enhance their technological capabilities, significant investments are being made in IT infrastructure to support digital health initiatives. This spending is crucial for the development and implementation of electronic health records, telehealth services, and other digital solutions that improve patient care and operational efficiency. The focus on IT spending is not only about adopting new technologies but also about ensuring these technologies are integrated seamlessly into existing healthcare frameworks, thus enabling better data management, improved patient outcomes, and streamlined healthcare processes.

Product Type Analysis

The Healthcare IT Software market is segmented by product types, including Electronic Health Records (EHR), Practice Management Software, Clinical Decision Support Systems (CDSS), Telehealth Solutions, and others. Each of these product types plays a pivotal role in modernizing healthcare services and enhancing patient care quality.

Electronic Health Records (EHR) systems are a cornerstone of healthcare IT, providing comprehensive patient data management and facilitating seamless information sharing among healthcare providers. The adoption of EHR systems is driven by regulatory mandates for maintaining digital patient records and the need for accurate, up-to-date patient information to enhance diagnostic accuracy and treatment planning. EHRs also support data analytics for better population health management and personalized medicine.

Practice Management Software is essential for streamlining administrative and fina

According to the budget estimates for fiscal year 2020, about 1.35 percent of India's GDP was spent on public health. This was a slight increase compared to the previous fiscal year when about 1.28 percent of the GDP was spent on healthcare.

BackgroundRising non-communicable diseases (NCDs) coupled with increasing injuries have resulted in a significant increase in health spending in India. While out-of-pocket expenditure remains the major source of health care financing in India (two-thirds of the total health spending), the financial burden varies enormously across diseases and by the economic well-being of the households. Though prior studies have examined the variation in disease pattern, little is known about the financial risk to the families by type of diseases in India. In this context, the present study examines disease-specific out-of-pocket expenditure (OOPE), catastrophic health expenditure (CHE) and distress health financing.Methods and materialsUnit data from the 71st round of the National Sample Survey Organization (2014) was used for this study. OOPE is defined as health spending on hospitalization net of reimbursement, and CHE is defined as household health spending exceeding 10% of household consumption expenditure. Distress health financing is defined as a situation when a household has to borrow money or sell their property/assets or when it gets contributions from friends/relatives to meet its health care expenses. OOPE was estimated for 16 selected diseases and across three broad categories- communicable diseases, NCDs and injuries. Multivariate logistic regression was used to understand the determinants of distress financing and CHE.ResultsMean OOPE on hospitalization was INR 19,210 and was the highest for cancer (INR 57,232) followed by heart diseases (INR 40,947). About 28% of the households incurred CHE and faced distress financing. Among all the diseases, cancer caused the highest CHE (79%) and distress financing (43%). More than one-third of the inpatients reported distressed financing for heart diseases, neurological disorders, genito urinary problems, musculoskeletal diseases, gastro-intestinal problems and injuries. The likelihood of incurring distress financing was 3.2 times higher for those hospitalized for cancer (OR 3.23; 95% CI: 2.62–3.99) and 2.6 times for tuberculosis patients (OR 2.61; 95% CI: 2.06–3.31). A large proportion of households who had reported distress financing also incurred CHE.RecommendationsFree treatment for cancer and heart diseases is recommended for the vulnerable sections of the society. Risk-pooling and social security mechanisms based on contributions from both households as well as the central and state governments can reduce the financial burden of diseases and avert households from distress health financing.

IT Spending in Remote Healthcare Delivery Market Outlook

The global IT spending in remote healthcare delivery market size was valued at approximately USD 25.3 billion in 2023 and is projected to reach around USD 83.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.1% during the forecast period. The COVID-19 pandemic has been a significant growth factor, accelerating the adoption of telehealth and remote patient monitoring systems, thereby driving substantial investments in remote healthcare IT.

One of the primary growth factors for this market is the increasing prevalence of chronic diseases such as diabetes, cardiovascular diseases, and respiratory disorders. These conditions require constant monitoring, which can be efficiently managed through remote healthcare solutions. The aging global population further adds to the demand for such technologies, as elderly individuals often require continuous medical supervision. Governments and healthcare organizations are increasingly recognizing the potential cost savings and improved patient outcomes facilitated by remote healthcare technologies, thereby driving market growth.

Technological advancements in telecommunications and cloud computing have also played a pivotal role in the market's expansion. High-speed internet, 5G technology, and the proliferation of smartphones have made it easier for healthcare providers to deliver services remotely. Advanced data analytics and artificial intelligence (AI) in healthcare management are enabling more accurate diagnosis and personalized treatment plans. The integration of Internet of Things (IoT) devices for real-time health monitoring is another critical factor contributing to increased IT spending in this sector.

The rise of consumer awareness and acceptance of remote healthcare solutions has also fueled market growth. Patients are becoming more comfortable with virtual consultations and remote monitoring, given the convenience and reduced risk of infection. The shift towards value-based care and patient-centric models has encouraged healthcare providers to adopt technologies that can enhance patient engagement and satisfaction. This paradigm shift is pushing healthcare providers to invest significantly in IT infrastructure and software to support these new delivery models.

Regionally, North America holds the largest share of the IT spending in remote healthcare delivery market, owing to its advanced healthcare infrastructure and favorable government policies. The United States, in particular, has seen substantial investments in telehealth services, partly due to regulatory changes that support their use. Europe is another significant market, with countries like Germany, the UK, and France leading the adoption of remote healthcare technologies. The Asia Pacific region is expected to witness the fastest growth, driven by increasing healthcare investments in countries like China, India, and Japan. These regions are focusing on expanding healthcare access to remote and underserved areas, further boosting market growth.

Component Analysis

When analyzing the component segment of the IT spending in remote healthcare delivery market, it's clear that each component—hardware, software, and services—plays a crucial role in the ecosystem. Hardware includes devices like remote patient monitoring systems, telemedicine carts, and wearable health devices. These pieces of equipment are vital for capturing and transmitting patient data. The demand for high-quality, reliable hardware has surged in recent years, driven by the need for accurate and timely health monitoring. As healthcare providers increasingly integrate IoT devices into their systems, the hardware segment is expected to see substantial growth.

Software is another critical component that includes electronic health records (EHRs), telemedicine platforms, and mobile health applications. These software solutions facilitate seamless communication between healthcare providers and patients, enabling real-time data sharing and remote consultations. Advanced software solutions powered by AI and machine learning are emerging, offering predictive analytics and personalized treatment plans. The software segment is experiencing rapid growth as healthcare providers turn to digital solutions to enhance patient care and operational efficiency.

The services segment encompasses consulting, training, and ongoing support services provided by IT vendors. These services are essential for the successful implementation and maintenance of remote healthcare systems. Consulting

Sikkim state budget expenditure for the Demand no. 13 of Health Care, Human Services and Family Welfare. It includes detailed Plan and Non-Plan budgetary expenditure with respect to revenue expenditure and capital expenditure. Mainly it contains budgetary expenditure related to Public Works, Medical and Public Health, Family Welfare, Housing, Census Survey & Statistics, Capital Outlay on Medical & Public Health.

In financial year 2025, the government of India allocated approximately 360 billion Indian rupees to the National Health Mission in the Union Budget. It is expected to reach 372 billion Indian rupees by fiscal year 2026 as per the budget estimates. The National Health Mission (NHM) is a government initiative that seeks to provide universal access to equitable, affordable, and quality health care in the country.

The global medical care service market, encompassing medical services, rehabilitation care, health management, and pension services, is experiencing robust growth. With a 2025 market size of $1822.2 million and a projected Compound Annual Growth Rate (CAGR) of 36.8% from 2025 to 2033, the market presents significant investment opportunities. This substantial growth is driven by several key factors: an aging global population increasing demand for preventative healthcare and long-term care, technological advancements in telehealth and remote patient monitoring, and rising disposable incomes in emerging economies fueling increased healthcare spending. The market's segmentation reveals a significant portion allocated to online applications, reflecting the increasing adoption of digital healthcare solutions. This trend is further reinforced by the presence of established players like Taikang Insurance Group and Vanke Enterprise, integrating technology into their offerings and expanding their service reach. The geographical distribution demonstrates strong growth potential across regions, particularly in Asia Pacific driven by China and India’s large populations and expanding healthcare infrastructure. While specific restraints are not provided, potential challenges might include regulatory hurdles, high implementation costs for advanced technologies, and workforce shortages in healthcare professions. The continued high CAGR indicates that this growth trajectory is anticipated to continue throughout the forecast period. Strategic partnerships between technology companies and established healthcare providers are likely to further accelerate market expansion. Growth will be particularly influenced by government healthcare policies, investment in healthcare infrastructure, and the successful integration of innovative technologies improving access to and the quality of medical care. The balance between online and offline service delivery will likely remain a key factor, with a focus on seamless integration of both to optimize patient experience and operational efficiency. Further competitive analysis of market players would provide a more granular understanding of market dynamics and future projections. Future projections should account for evolving healthcare priorities, including disease prevention and management, personalized medicine, and improved healthcare access in underserved communities.

The India hospitals market is valued at USD 126 billion, based on a five-year historical analysis. This market is primarily driven by the growing population, increasing healthcare spending, and government initiatives like Ayushman Bharat, which aims to provide universal healthcare coverage.