India's ageing population fuels demand for organised elder care ecosystem

Growing life expectancy, changing family structures and rising incomes are driving demand for home care, assisted living and senior-focused health services

When 78-year-old retired government officer Sridhar underwent knee replacement surgery, his family expected a smooth recovery. Instead, complications left him with limited mobility, making it difficult for him to live independently in his Hyderabad home. His wife had died two years earlier, while his son lived in the US and his daughter in Bengaluru.

 

After Sridhar suffered a minor fall, his son sought professional elder-care support and contacted Anvayaa. According to the family, the initial discussions focused on understanding his medical condition, daily routine and support needs before a care plan was put in place. It included regular home visits, physiotherapy support and coordination during medical emergencies. Over the next three years, a care manager visited him twice a week and remained in regular touch with the family, providing updates that reassured them his day-to-day health and care needs were being closely monitored.

   

Sridhar's experience reflects a broader trend emerging across India. As the country's elderly population grows and more families live in different cities or countries, organised elder-care providers are seeing increasing demand for services ranging from home healthcare and assisted living to emergency support, rehabilitation and companionship.

 

Growing demand

 

According to a NITI Aayog report on the State of Senior Care in India released in February 2024, the country's senior-care industry is estimated at $7 billion, having expanded rapidly over the past five years.

 

"The elder-care sector is entering a growth phase. Today's senior citizens are more educated, have higher purchasing power and are more willing to spend on services that support independent living, particularly as more families live separately," said Pankaj Mehrotra, founder of Elderly Care India.

 

Demand for organised elder-care services is rising as more working professionals live away from their ageing parents and seek support ranging from routine health monitoring and hospital coordination to emergency response and companionship.

 

According to United Nations Population Fund projections, India's elderly population is expected to increase from around 100 million in 2011 to 230 million by 2036. By then, nearly one in seven Indians is projected to be aged 60 years or older.

 

"Most families that reach out to us are nuclear families whose children live away, and the children who need care for their elder loved ones, that can't be managed from a distance, or whose condition has become too complex for home, even if they are staying together with their children. Independent elders, on the other hand, tend to gravitate toward active senior living communities that give them a sense of community and belongingness," said Neha Sinha, co-founder and CEO of Epoch Elder Care.

 

Challenges remain

 

India's growing elderly population is exposing gaps in healthcare infrastructure, policy support and organised elder-care services. The sector also faces a shortage of trained caregivers, uneven service quality and the need for stronger standards and regulatory oversight.

 

"The biggest challenge is building and retaining a workforce that can provide consistent, empathetic care. Elder care is a relationship-driven business, and training people at scale takes time. Expanding into tier-II and tier-III cities is another challenge, as providers have to build trust and maintain service quality in every new market," said Prashanth Reddy, founder and managing director of Anvayaa Kin Care.

 

Technology-led care

 

Technology is playing an increasingly important role in elder care, with digital health platforms, telemedicine, AI-based diagnostics, wearable devices and remote monitoring improving healthcare access and enabling early intervention.

 

"The convergence of healthcare and technology is becoming a key growth area in the elder-care sector," said Surya Maguluri, co-founder and CTO of CURAPOD. He added that demand is also rising for mobility, rehabilitation and pain management services, which are increasingly being viewed as part of long-term healthy ageing rather than post-treatment care.

 

Cost of care

 

The cost of organised elder care varies depending on the level of support required, ranging from home healthcare and assisted living to specialised nursing and medical services, said Surya Maguluri, co-founder and CTO of CURAPOD. Home-based care typically costs between ₹15,000 and ₹35,000 a month, while assisted living facilities generally charge ₹30,000 to over ₹1 lakh a month. Most expenses continue to be paid out of pocket, as insurance coverage remains largely limited to hospitalisation.

 

Maguluri said demand is increasingly being driven by families seeking preventive healthcare, mobility support and chronic pain management to help older adults maintain their independence.

 

Insurance coverage

 

Rising medical inflation and limited retirement income are reshaping the senior health insurance market, with insurers expanding coverage beyond hospitalisation to include preventive care, chronic disease management and financial protection.

 

India's ageing population is also shifting the focus of financial planning from wealth creation to retirement income and financial independence, said Ashish Vohra, executive director and CEO of IndusInd Nippon Life Insurance. He added that rising life expectancy has made retirement planning and health protection increasingly interconnected, as medical expenses can significantly affect long-term savings.

 

While insurers are expanding their offerings for senior citizens, gaps remain in coverage for preventive and day-to-day healthcare needs.

 

"While insurers are introducing more products for senior citizens, preventive and holistic care services such as wellness programmes, outpatient consultations and physiotherapy remain largely outside the scope of most health insurance plans. Expanding coverage beyond hospitalisation could better address the day-to-day healthcare needs of older adults," said Atul Mishra, head of personal insurance at Plum.

 

The sector's next phase of growth will likely depend on how quickly providers, insurers and policymakers can address gaps in accessibility, affordability and quality of care as India's elderly population continues to expand.