Healthcare Procurement in India: Hospital and Medical Tenders Overview

Healthcare Procurement in India: Hospital and Medical Tenders Overview

India’s healthcare sector stands out for its best facilities and services. With the world’s largest population, the Government of India strives to ensure that every citizen receives fair treatment and quality services. To support this vision, Healthcare Procurement Tenders play a vital role by supplying goods and services. Every day, thousands of tenders are released by both state and central authorities.

According to a Bajaj Finserv AMC report, this sector is expected to reach above $638 billion by 2025. This growth has created significant possibilities for businesses seeking to provide medical services through government tenders. For entrepreneurs and companies in the healthcare sector, it opens great potential to grow their business while contributing to social welfare.

In this blog, we’ll explore India's healthcare sectors, tender types, challenges, and key opportunities to secure Hospital and Medical Tenders.

What is Driving the Growth of Healthcare Procurement in India?

The Government of India has a major role in expanding the landscape of the healthcare procurement sector. With fiscal support and policies, the medical sector is becoming a thriving space for businesses. In the Union Budget for FY 2025-26, the government has allocated ₹99,859 Cr to improve healthcare infrastructure, digital health systems, and medical device procurement.

The government introduced new programs through the Production Linked Incentive (PLI), which supports domestic manufacturing of pharmaceutical products, generic drugs, and medicine production. Research by the World Health Organisation indicates India ranks third globally in pharmaceutical exports. The current market value of the pharmaceutical sector stands at $41 billion and is expected to grow to $130 billion by 2030.

In the same way, the medical devices and equipment sector has grown to $11 billion, with an expected reach of up to $50 billion. This expansion has created numerous Healthcare Sector Tenders. Whether it's medical equipment, hospital infrastructure, or other supply chains, they are among the most sought-after categories.

Let’s explore those Healthcare Sector Tender categories that are creating lucrative revenue for businesses.

Category	Examples	Market Value
Medical Equipment	MRI machines, Surgical, dental, orthopaedic, and laboratory instruments, ventilators, etc.	High-value, specialised tenders
Infrastructure	Government healthcare centres, district hospitals, nursing homes construction and renovation	Long-term projects with robust revenue
Pharmaceutical	Manufacturing of generic drugs, vaccines, and surgical kits for humans or animals	Volume-based procurement
Digital Devices	EHR systems, telemedicine systems	Emerging growth area

By participating in Healthcare Sector Tenders, businesses can expand their growth and reach new markets.

What are the Key Types of Hospitals and Medical Tenders?

The healthcare procurement sector can also be classified into different types, each of which highlights a specific area of focus. These tender types cover a wide spectrum of goods and services and infrastructure requirements. Understanding these helps vendors identify where to participate and move forward in the healthcare framework.

Here are the Key types of Healthcare Procurement Tenders in India:

• Central Government Tenders: These tenders are published by the high authorities, such as AIIMS, ESIC, and government hospitals, for medicines, equipment, and infrastructure development.

• State Government Tenders: These tenders are generally announced by the state health departments and state medical universities to improve healthcare services.

• Municipal Corporation Tenders: Released by the local governing authorities and municipal corporations (Nagar Palika, Nagar Nigam) for rural hospitals, nursing homes, sanitation, and public health projects.

• Global Agency Tenders: These tenders are often announced by international bodies such as the WHO, UNICEF, and World Bank to support large-scale healthcare initiatives across the world.

Hospital and Medical Tender allows everyone, from large-scale businesses to MSMEs, to collaborate with government authorities. Since the tender process has become increasingly digitalised, both central and state platforms offer a seamless system for participants. This transformation has improved transparency and accessibility for vendors across the country to engage more effectively in the healthcare sector.

What are the Key Challenges in Healthcare Procurement Tenders?

Healthcare procurement sectors in India deal with multiple challenges and structural inefficiencies. Fragmented tendering systems across states create instability in pricing, eligibility criteria, and project timelines. The lack of an integrated framework further reduces transparency and slows decision-making, ultimately affecting hospitals and suppliers.

At the execution level, challenges like late payments, complex documentation processes, and missing notifications of tenders add to the problem. Many vendors struggle to monitor tenders, which limits their participation.

To resolve these issues, businesses are adopting third-party service platforms that easily provide reliable information. Platforms like Tender Grid offer timely updates and centralised views of Hospital and Medical Tenders. With its simplified tracking feature, businesses can navigate the complexities and secure better tender opportunities.

How Can Businesses Benefit from Healthcare Procurement Sector Tenders?

While the challenges remain, Healthcare Procurement Tenders are emerging as a hub for innovation, growth, and opportunities. From digital tenders to increasing the demand for hospital equipment, multiple projects are opening up to innovate and collaborate with the government.

Let’s take a closer look at how businesses can benefit from these tenders:

• Work on public sector projects that provide long-term growth and authenticity.

• Suppliers can contribute by providing medical equipment to improve healthcare delivery.

• Businesses can collaborate with healthcare institutions on creative solutions and services.

• Expand business reach across multiple states and healthcare sector projects.

• Access multiple segments of the medical sector, such as telemedicine and health IT.

For updated information about investment guidelines or new ventures in the healthcare sector, you can review the Niti Aayog reports for detailed insights.

How Are Healthcare Sector Tenders Released and Processed?

We have understood all the essential aspects of the healthcare sector tenders. Let’s explore how these tenders are released and processed.

Healthcare Sector Tenders are generally released on official e-procurement portals such as GeM and state-specific websites. These portals are managed by central and state government authorities, where tenders are announced based on the demand for specific goods and services in hospitals and medical institutions.

When a tender is released, the portal provides a document with complete details of eligibility criteria, submission steps, deadlines, and documentation. Interested vendors must carefully read these details and prepare a technical as well as a financial bid proposal. It’s important to submit the proposal within the given deadline via the official e-procurement portal.

The assessment authorities analyse the compliance, technical capacity, and fiscal stability of each vendor. Once the assessment is complete, the tender is granted to the most suitable vendor. This methodical approach ensures transparency and provides reliable healthcare facilities across the hospital and institutions.

Conclusion

India’s healthcare sector is in a flourishing stage, offering numerous opportunities for businesses to contribute to better hospital and medical facilities. With policy support and rapid demand for medical equipment and infrastructure, this sector has become highly dynamic. In this blog, we have explored key aspects of the healthcare sector, including categories, challenges, opportunities, and strategies to secure a tender successfully.

With the right strategy and comprehensive knowledge of the tender proposal, vendors can participate confidently and win the most profitable tender. However, staying updated with a trusted platform like Tender Grid and framing a well-structured proposal allows businesses to maximise their chances of winning. Every Healthcare Sector Tender, along with representing business growth, also supports the strengthening of India’s healthcare system and improving citizen services.