Hospitals Line Up Expansion Plans With 34,000 New Beds

Leading chains plan ₹40K crore infra revival to close capacity gap over next 3-5 years

- ANJALI SINGH

India's leading hospital chains are undertaking aggressive expansion plans over the next three to five years to bridge the widening demand-supply gap in the country's healthcare infrastructure.

According to industry estimates, the private sector is expected to add over 34,000 new beds cumulatively by 2028-29 (FY29), entailing an investment of around ₹40,000 crore.

Geographically, the expansion is heavily concentrated in North and South India, accounting for roughly 46 per cent and 30 per cent of the new capacity, respectively, followed by West India at 13 per cent, and the East and Central regions at 11 per cent.

A significant 38-40 per cent of this new capacity, equating to around 14,000 beds, is targeted towards Tier-II and Tier-III cities, indicating a broadening reach beyond the major metropolitan areas.

This comes amid a steady rise in healthcare demand driven by growing urbanisation, an increase in lifestyle-related ailments, and greater health awareness after the pandemic. The private sector currently accounts for 60-65 per cent of hospital beds in India. With public health infrastructure struggling to keep pace, private providers are stepping in to fill the void, announcing sizeable capacity expansion plans to tap into this unmet demand.

According to industry estimates, the expansion will entail a capital outlay of over ₹40,000 crore—a mix of greenfield, brownfield, and acquisition-led growth—backed by internal accruals, existing cash reserves, and incremental debt.