New Delhi, Jan. 1 -- India's hospital sector is set for sustained growth with an expected compound annual growth rate (CAGR) of 11-12 per cent, supported by strong structural demand drivers such as rising insurance penetration, growing medical tourism, and increasing healthcare needs, according to a report by CareEdge Ratings.

The report highlighted that the sector's long-term demand outlook remains robust due to multiple factors. These include low hospital bed density, a steady rise in lifestyle and chronic diseases, an ageing population, and higher health insurance coverage.

It stated, "The low cost of treatment and high-quality care make India a preferred destination for medical tourism, with more than 7 lakh medical tourists in 2024...