Forecast: Share of Out-of-Pocket Health Expenditure in India

From 2013 to 2023, the share of out-of-pocket health expenditure in India exhibited a gradual decline from 89.14% to 88.96%. The year-on-year variations show a consistent but minor decrease, with significant drops seen in the earlier years and slowing down in recent years. Over the last five years leading to 2023, the average annual decrease (CAGR) has been -0.018%. The forecast from 2024 to 2028 indicates a continued but very slight decrease, with a forecasted 5-year CAGR of -0.01% and a total forecasted growth rate of -0.07%.

Future trends to watch for include:

• Further government initiatives aimed at reducing out-of-pocket expenses.
• Increased penetration of health insurance coverage in rural and urban areas.
• Potential impact of technological advancements in healthcare delivery reducing costs.
• Shifts in economic conditions affecting household expenditure on health.