Mumbai: Indian hospitals are preparing for a significant leap in digital transformation, with IT innovation budgets expected to rise by 20–25% over the next two to three years. The Confederation of Indian Industry (CII) and EY shared these insights in their HealthTech Survey 2025, released at the CII HospiTech 2025 Summit.
Report Highlights Digitalisation Trends
The report, titled “Unleashing Digital Momentum to Shape the Future of Healthcare – Enabling Automation to Enforcing Transformation”, highlights how digitalisation is reshaping the healthcare sector.
Nearly half of Indian healthcare providers are already allocating between 20% and 50% of their IT budgets to digital innovation, with automation, data-driven care, and patient experience identified as the foremost priorities.
Investments Aimed at Patient Outcomes
Hospitals, the survey found, are directing investments toward enhancing clinical outcomes, building data-driven decision-making capabilities, and improving patient journeys. However, the path to transformation is not without challenges.
Six in ten hospitals cited workforce capability building and IT team upskilling as their single biggest hurdle, underlining the urgent need for a digitally fluent healthcare workforce. Nearly half of respondents also reported difficulties in integrating business intelligence tools and managing data effectively. Hardware limitations, data storage, and cybersecurity concerns continue to remain pressing issues.
AI Adoption Gathers Pace in Hospitals
One of the most significant trends identified in the report is the growing adoption of artificial intelligence (AI) across hospitals. More than 70% of providers surveyed said they are already investing in AI for clinical documentation and analysis.
Additionally, 64% are prioritising AI in decision support systems, while 60% are applying AI in imaging. Experts believe this reflects a shift from pilot projects to practical, high-impact deployments that deliver measurable value to doctors, patients, and administrators.
Industry Leaders Call for Collaboration
Speaking at the summit, Joy Chakraborthy, Chairman of CII HospiTech 2025, emphasised that closer collaboration between government, industry, and healthcare providers will be essential to unlocking the sector’s full digital potential.
Ankur Dhandharia, Partner – Healthcare at EY Parthenon India, added that hospitals are now moving decisively toward scalable digital systems that ensure seamless patient journeys.
He pointed out that government initiatives such as the Ayushman Bharat Digital Mission (ABDM) and the Digital Personal Data Protection Act (DPDPA) are expected to accelerate the pace of transformation.
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Persistent Barriers to Digital Growth
Despite this momentum, persistent barriers remain. Nearly two-thirds of chief information officers cited resistance to change among stakeholders as a significant impediment, while four in ten highlighted the difficulty of integrating new systems with existing legacy platforms.
The survey further revealed that only half of Indian healthcare providers have partially implemented the ABDM, although another 40% plan to do so in the near future.
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