The growing senior citizen population of the country, expected to double to 22 percent by 2050 from the present 11 percent, presents a business idea with a real potential in catering to the changing tastes and preferences of the silver generation.
This demographic shows greater technological proficiency, consumerism, financial security and aspirations that are beyond basic needs, which are bound to spew business opportunities in categories catering to their special needs.
The expectations of the senior citizens, aged 60 and above, include a wellness-oriented lifestyle, active & engaging avenues, new experiences, spiritual support, comprehensive financial and succession planning.
The growth in retirement-focused mutual funds, demonstrated by a 226% increase over five years, from ₹9,800 crore in June 2020 to ₹31,973 crore in June 2025, indicates considerable financial affordability of this group of people.
The private sector NPS AUM also shows a similar trend, with a 26.8% increase over the past five years, climbing from ₹84,814 crore to ₹2,78,102 crore, and is expected to exceed ₹9.12 lakh crore in AUM with 15 million subscribers in the next five years, according to market estimates.
Attractive Business Opportunity
The senior care industry is poised for evolution and diversification, with the sector projected to reach approximately $ 50 billion by 2030, growing at a compound annual rate of ~20% according to a recent survey by PwC and Association of Senior Living India (ASLI). The ASLI is a national membership organisation of developers, caregivers, home care providers, and service providers.
Its survey also points out that 85-90% of industry leaders are highly optimistic about the sector’s growth in India over the next 15 years , with most of them planning active investment, diversification, and service expansion. “With the sector projected to grow ~20% annually to nearly $ 50 billion by 2030, India must pair scale with compassion,” said experts congregating at the release of the ASLI survey..
The sector is witnessing robust investments, with nearly 20 deals in the last 18 months alone. Investment ticket sizes have crossed ₹100 crore, new investors have signed up, and the target portfolio has diversified.
Supply Ramp Up
In response to growing demand, supply is anticipated to increase substantially. The current organised supply infrastructure serves approximately 3-4 million seniors (~2-3% of the total senior population), with projections indicating that capacity will more than triple in the next five years.
The senior living capacity is likely to increase 5x by 2030, the report said. Premium senior living facilities are experiencing strong performance, with occupancy rates consistently maintaining 80-85%. But, the projected increase in supply is expected to remain insufficient to meet potential demand. And here in lies an opportunity.
“India’s senior living sector is at a critical inflection point, with the target market expanding to 2.3 million households by 2030 and market penetration nearly doubling to 2.5%. Currently, India operates at just 1.4% market penetration versus 6%+ in mature markets.
This supply-demand gap presents a golden opportunity for strategic investors in one of India’s most vibrant emerging sectors.
The sector’s transformation will be driven by innovative solutions and operational model changes, with Maharashtra’s Housing Policy 2025 serving as a progressive blueprint that could unlock national-scale investment, said Karan Singh Sodi, Senior Managing Director – Mumbai MMR & Gujarat, and Head – Alternatives, India, JLL
Growing Business, Increased Livelihoods
As the senior population grows, both domestic and international investors are fuelling innovation and expanding service options. The sector will likely integrate best practices and innovations from real estate, BFSI, and healthcare industries. Expect more diverse providers, facilities in various locations, and innovative service and payment models. The portfolio of services is likely to further diversify to include more skilled nursing care centers, specialised geriatric centers, continuing care retirement communities, and other specialised care service providers.
Enabling Regulatory Regimen
A streamlined, progressive regulatory framework is crucial for the growth of senior care in India. This should include single-window clearances, clarity in registration, and incentives for global best practices in safety and service quality. Updated financial regulations, such as providing financial independence to the senior population through Reverse Mortgage Loans (RML) and enabling long-term loans by classifying senior living projects as ‘infrastructure status,’ can facilitate growth.
What The Leaders Say
Rajit Mehta, Chairman, ASLI and MD & CEO Antara Senior Care, said “India’s Silver Generation has more money than the previous one and they’re investing it in their golden years. While as many as 70% seniors remain financially dependent even today, but this trend is changing. The right financial and insurance innovation can help unlock the economic opportunity presented by India’s demographic evolution.”
Dr. Rana Mehta, PwC India Partner & Leader– Health Advisory, said,“By investing in preventive care, active lifestyles, and age-inclusive innovation, India has the chance to move from a ‘silver economy’ narrative of dependency to an evergreen economy—one where longevity fuels growth, productivity, and intergenerational value creation.”
