India's Hospital Sector to continue its double-digit growth
CRISIL's latest: India's Hospital Sector to continue its double-digit growth, scaling from Rs. 5.7L Cr in FY23 to Rs. 7.4L Cr in FY25.
In an industry dominated by private hospitals, large hospital chains like Apollo and Fortis are expected to grow even faster owing to their higher expansion plans and increasing share of complex surgeries.
What’s driving this growth?
1. Continued high level of CAPEX
- Rs. 13,000 Cr capital outlay for FY 24-25.
- 6,000+ bed additions in FY24-25, compared with 8,500 beds added in FY18-23.
- ~75% capacity additions planned in tier 1 cities, especially in the established north and south Indian regions.
2. Rising medical tourism
- Medical tourism in India is expected to cross pre-pandemic levels with 7.3L medical tourists in 2024.
- Majority of the tourists are from least developed/ developing nations, with around 75% share originating from Bangladesh, Afghanistan, Iraq and the Maldives.
- ‘Heal in India’ initiative by GoI.
3. Aging population, more lifestyle-related illness and growing affordability.