Several large players in the Indian hospital sector have announced sizeable expansion plans across locations. While most of these bed additions are likely to be across metro cities, ICRA notes that tier II and III cities will also see traction.

• In India, the private sector accounts for about 62-63% of the total number of hospitals and 59-60% of available hospital beds. Public healthcare spending remains low at around 3-3.5% of India's gross domestic product (GDP) and there are challenges such as overcrowding of patients and a sparse availability of public healthcare facilities in both rural and urban regions. As a result, dependence on private hospitals remains high and is likely to continue over the medium term.
• To capitalise on the demand-supply gap, large private hospital players are undertaking sizeable capacity expansions. Cumulatively, ICRA's sample set of 18 large hospital chains is expected to add over 34,000 beds during FY2026–FY2030, translating to a cumulative 48-50% addition over their existing capacity as on March 31, 2025.