India's healthcare and pharma sector has seen big changes over the last 10 years, with 594 mergers and investments worth $30 billion πΈ, according to a report by Grant Thornton Bharat and the Association of Healthcare Providers India (AHPI).

π₯ Biggest Healthcare Deals of the Decade
The biggest deal was the $5 billion merger between Aster DM Healthcare Ltd and Quality Care India Ltd in 2024. The largest private equity investment was Temasek Holdings' $2 billion investment in Manipal Health in 2023.
π₯ Hospitals led the way, making up 40% of these deals, showing that investors are focused on building better hospital infrastructure and improving efficiency.
π Why Investors Are Putting Money into Healthcare
The report, Vitals for Growth: Decoding Healthcare Financing and Funding in India, explains the major reasons why healthcare is growing:
1οΈβ£ More people need healthcare π¨βπ©βπ§βπ¦ β India has more elderly people and more lifestyle diseases like diabetes.
2οΈβ£ Better hospital services π₯ β People want better quality care, so hospitals are improving.
3οΈβ£ Health insurance is growing π³ β More Indians have insurance, making healthcare more affordable.
4οΈβ£ Healthcare bounced back after COVID-19 π¦ β The pandemic made hospitals stronger and more prepared.
5οΈβ£ Efficient hospitals attract investors π‘ β Investors prefer hospitals that give good treatment and manage costs well.
π¬ "Indiaβs healthcare system is changing because of aging populations, lifestyle diseases, and a focus on quality care. More people have insurance, and hospitals are becoming more efficient," said Bhanu Prakash Kalmath S J, Partner & Healthcare Industry Leader at Grant Thornton Bharat.
π Challenges and the Future of Healthcare in India
As Foreign Direct Investment (FDI) in healthcare reaches $11.19 billion (as of September 2024), most funding goes to hospitals, diagnostic centers, and specialized care. But there are still big challenges:
β οΈ Not enough doctors and nurses β India is short by 1.54 million doctors and 2.4 million nurses. π©ββοΈπ¨ββοΈ β οΈ Hospitals are mostly in big cities β 60% of hospital beds are in metro areas, but 70% of people live in small towns and villages. ποΈπΎ β οΈ Medical care is expensive β Many people struggle to afford treatments. πΈ
To fix these problems, experts suggest better medical training, more hospitals in rural areas, and using digital health technology π² to improve healthcare access.
π¬ "To improve healthcare, India needs more doctors, hospitals in small towns, and lower treatment costs. Digital health and better training will help make care available for everyone," said Dr. Girdhar Gyani, Director General, AHPI.
π What's Next for Indian Healthcare?
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