India's hospital sector is projected to experience 12% compound annual growth over the next 3-5 years, according to CareEdge Ratings. This growth is attributed to a significant shortage of hospital beds, with India having only 16 beds per 10,000 people compared to the WHO recommendation of 30. Rising health insurance penetration, including government schemes like PMJAY, and increasing medical tourism are also key drivers. The report highlights an urban-rural imbalance in bed distribution and anticipates further growth in insurance coverage.