Unlocking India’s $40 Billion Digital Health Opportunity

India’s healthcare sector is undergoing a pivotal digital transformation. With 600+ million ABHA IDs, over 100 million eSanjeevani consultations, and record-breaking vaccination rollouts via CoWIN, India has demonstrated that it can build and deliver digital health solutions at a population scale. However, the question is no longer whether we can execute at scale. The real question is whether India will emerge as a global pathfinder in the healthtech revolution or remain a follower.

The Foundation of India’s Digital Health Ecosystem

As the nation embraces digital public infrastructure across domains, from payments and identity to health, it is increasingly clear that digital health will form the bedrock of future healthcare delivery in India. And this transformation is not just a matter of modernisation. According to projections based on NITI Aayog’s 2024 report on Senior Care, India’s digital healthcare market was valued at ₹11,661 crore ($1.5B) in 2019 and ₹48,543 crore (~$6.2B) in 2024, growing at a sustained CAGR of 33.01%. As the sector continues to grow at a sustained CAGR of 33.01%, it establishes a credible and achievable pathway toward a $40 billion digital health market by 2030.

 What Is Digital Health?

Digital health refers to the use of technology to make healthcare more accessible, efficient, and connected. It includes everything from online consultations and digital health records to wearable devices, health apps, and tech-enabled insurance. It also covers the public digital infrastructure that makes these services work together, like health IDs, data standards, and digital platforms. While ‘healthtech’ often refers to startup-led innovation and ‘digital healthcare’ to service delivery, the digital health sector in its entirety spans public infrastructure, private solutions, and consumer tech forming the connective tissue of a modern health system.

Key Segments Driving the Digital Health Market 

The expansion of the digital health market is underpinned by four primary segments: digital health platforms including teleconsultation, e-pharmacy, e-diagnostics, and health marketplaces; HealthTech SaaS and data infrastructure spanning Electronic Medical Reports (EMRs), hospital systems, AI tools, and analytics; connected wellness and devices such as fitness and wearable tech, chronic disease management tools, and diagnostics; and financing, outpatient department (OPD) benefits, and tech-enabled insurance addressing India’s massive out-of-pocket burden.

Post-Pandemic Tailwinds and Market Momentum

Each of these segments has seen post-pandemic tailwinds, driven by rising smartphone penetration (~1.2 billion users in early 2025), medical inflation (13.8% YoY), and growing chronic disease burden (India is the 2nd largest diabetes population globally). Digital adoption has surged, with over 100 million consultations per month.

Investments and Infrastructure Growth

This growth is being propelled by a compound annual growth rate (CAGR) of 35–40% in key segments, surging investment interest (over $1.2 billion in VC funding in 2024 alone), and rapidly expanding digital infrastructure, especially in Tier 2+ towns and rural areas.

The $40 Billion Opportunity

The projected $40 billion valuation of India’s digital health market by 2030 reflects a tectonic shift in how healthcare will be delivered, experienced, and governed. It’s about transforming healthcare into a connected, data-driven, and inclusive ecosystem, and positioning India not just as a consumer of digital health innovation, but as a global pathfinder.

4th CII Digital Health Summit 2025

CII is organizing the 4^th Digital Health Summit 2025 on 25 July 2025 in Delhi.  Policymakers and experts from the sector will share valuable insights and deliberate on India’s readiness to unlock its projected $40 billion digital health opportunity by 2030. The deliberations will explore-

• The way ahead as India moves from execution to leadership in digital health innovation
• Ways to unlock funding and scale pathways for startups beyond the pilot stage
• Mechanisms to improve interoperability, financing and last-mile adoption
• The need for stronger partnerships across government, industry, and academia
• Opportunities to shape a globally relevant digital health playbook rooted in India’s context

India stands at a critical inflection point in its digital health journey. With robust infrastructure, soaring adoption, and a clear growth trajectory, the nation has the potential not just to scale innovation, but to lead it globally. The 4th CII Digital Health Summit 2025 will offer a vital forum to align policymakers, industry leaders and innovators around this vision and co-create a future-ready digital health ecosystem rooted in India’s strengths.