Hospitals, diagnostics & healthcare services.

Hospitals, diagnostics and the broader 'health & social work' activity generate an estimated ₹6.8 lakh crore of gross value added in FY26 (2.2% of national GVA), funded roughly half by government spending (₹5 lakh crore) and half by households, still mostly out of pocket. Delivery runs through 2.2 million hospital beds (1.6 per 1,000 people), about 70,000 private hospitals and nursing homes, and over a million clinics and diagnostic centres, with corporate/listed chains holding only about 5% of beds and 4.5% of GVA despite commanding the bulk of listed healthcare market capitalisation. The sector has compounded at roughly 12-14% a year since FY05 on rising government spending, expanding insurance coverage (PM-JAY, private premiums) and private-equity-led consolidation of hospital chains, and is expected to keep growing at about 10-11% a year to FY30 and FY35 on an ageing population, rising non-communicable disease burden and insurance penetration, constrained mainly by the pace of bed, doctor and nurse supply. The investable slice remains small and expensive: listed hospital, diagnostics and device companies are worth about ₹6.8 lakh crore (an Equity Representation Ratio of ~0.65) but trade at 55-75x FY26 earnings, reflecting the market's preference for the premium, insurance-funded corporate tier over the mostly informal, non-profit-adjacent bulk of the industry.

Estimated GVA

6.8 ₹ lakh crore · FY26

Total health expenditure (NHA)

11.8 ₹ lakh crore (≈3.4% of GDP) · FY26

Hospital beds

2.2 million (1.6 per 1,000 people) · FY26

Employment

7.5 million · FY26

Listed market cap

6.8 ₹ lakh crore (≈35 hospital, diagnostics & device cos) · FY26

Health insurance gross direct premium

1.3 ₹ lakh crore · FY26

Out-of-pocket share of total health expenditure

43 % · FY26

Government health expenditure

5.0 ₹ lakh crore · FY26