Forecast: Health Expenditure in India

The health expenditure in India has shown a gradual increase from 4.53% of GDP in 2013 to 4.92% in 2023, with a year-on-year growth rate of approximately 0.6% in recent years. The Compound Annual Growth Rate (CAGR) has been declining, reflecting lower incremental growth, culminating in a CAGR of 0.63% over the past five years.

The forecast indicates a continued but modest growth in health expenditure, reaching 5.06% of GDP by 2028. The forecasted average annual growth (CAGR) over the next five years is expected to be around 0.44%, suggesting a slower growth trajectory compared to previous years.

Future trends to watch for include:

- Impact of government policies targeted at increasing healthcare funding.

- How economic fluctuations influence healthcare spending.

- Technological innovations and their role in cost management.

- Initiatives to expand healthcare access in rural areas.

- The effect of demographic changes, particularly an aging population, on healthcare demand.