India’s healthcare IT market is projected to hit USD 93.4 billion by 2033, driven by AI, cloud computing, IoT, and telemedicine adoption across hospitals and startups.
India’s healthcare IT sector is poised for substantial growth, with the market estimated at around US $16.1 billion in 2024 and projected to expand to approximately US $93.4 billion by 2033. This represents a compound annual growth rate (CAGR) of about 20.5% between 2025 and 2033.
The rapid growth is being driven by several intersecting trends: healthcare providers are increasingly embracing advanced technologies — such as artificial intelligence (AI) and machine learning (ML) — to support diagnostics, predict patient outcomes and tailor treatments. Meanwhile, the proliferation of Internet of Things (IoT) devices (for example remote monitoring tools and smart-hospital infrastructure) is helping build a more connected and data-driven healthcare environment. Transitioning from legacy systems to cloud-based platforms is also gaining pace, offering scalability, better data security and cost optimisation.
Additionally, telehealth and telemedicine are no longer niche services; they are increasingly mainstream in India, improving access especially in tier-2 and tier-3 cities. There is also a stronger emphasis on health-information interoperability, enabling seamless data exchange across clinics, hospitals and other care settings. In parallel, mobile health apps, wearables and patient-engagement platforms are supporting a shift toward more participatory and personalised care.
The broader growth narrative is supported by policy and demographic factors. Key national initiatives (such as the digital health mission and insurance schemes) are laying the groundwork for digital infrastructure and a higher uptake of IT tools in both public and private healthcare. At the same time, the burden of chronic and non-communicable diseases is increasing, prompting providers to seek efficient digital solutions for long-term care management and streamlined operations. Rising health awareness and increasing disposable incomes are boosting demand for higher-quality and more transparent care, and healthcare organisations are turning to enterprise resource planning (ERP), hospital information systems and revenue-cycle management platforms to reduce costs and improve efficiency. The COVID-19 pandemic further accelerated digital adoption, making teleconsultations and remote monitoring more acceptable and persistent.
Venture capital and private-equity investment are also playing a decisive role, backing health-tech startups offering software-as-a-service (SaaS) platforms, AI-based diagnostics and other next-generation solutions. Combined with a deepening tech talent pool in India, these factors suggest the healthcare-IT market is well-positioned for sustained expansion in one of the world’s most dynamic health-care ecosystems.