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Niti Aayog in its report titled 'Investment Opportunities in India's Healthcare Sector’ has said that healthcare has become one of the largest sectors of the Indian economy, in terms of both revenue and employment. It noted that the country’s healthcare industry has been growing at a compound annual growth rate (CAGR) of around 22 percent since 2016 and at this rate, it is expected to reach $372 billion in 2022. It also said the sector has the potential to generate 27 lakh jobs in India between 2017 and 2022---over 5 lakh new jobs per year. 

The report outlined a range of investment opportunities in India's healthcare sector across hospitals, pharmaceuticals, medical devices, home healthcare solutions and in areas of new-age technologies. It also pointed out that in the hospital segment, the expansion of private players to tier-II and tier-III locations, beyond metropolitan cities, offers an attractive investment opportunity. Besides, it indicated that FDI inflows in the healthcare sector in India increased from $94 million in 2011 to $1,275 million in 2016, a jump of over 13.5 times.  It added that the hospital industry was valued at $61.79 billion in 2016-17 and is expected to reach $132 billion by 2023, growing at a CAGR of 16 per cent-17 percent. 

According to the report, while the adoption of home healthcare solutions in India is currently at a relatively nascent stage, it has tremendous potential for growth in the future. It is on account of the rising elderly population in the country, increase in the incidence of chronic diseases, enhanced demand for constant personalised care as well as the emergence of nuclear family structures in urban areas.