India’s care economy poised to create 60 mn jobs and unlock $300 bn growth by 2030: Report

India is on the brink of unlocking a major source of jobs and economic growth that has mostly gone unnoticed, right inside our homes and neighbourhoods. According to a new report by Primus Partners, “The Care Economy Boom”, the care sector is quietly becoming a key part of the economy, supporting urban life, work participation, and the country’s changing population.

The sector already employs around 36 million people, and with the right support, could create over 60 million jobs and be worth $300 billion by 2030, according to the report.

Most economic strategies in India draw on international models, but these do not always fit our unique approach to care, the report said. This new report offers a fresh definition, laying out 13 job categories across a wide range: childcare, eldercare, disability support, rehabilitation, mental health, wellness, beauty, domestic services, and care business management.

By including wellness, grooming, and traditional therapies, the report shows just how wide-ranging and important the urban care workforce is. They meet the growing needs of working families and older adults who need help managing health conditions.

Nilaya Varma, Group CEO, Primus Partners, said, “Care is now essential economic infrastructure, yet largely invisible in policy. By mapping 13 care personas, this report shows how formalisation can turn care into a major engine of jobs and growth”.

Care is becoming increasingly important due to long-term population changes in India. The number of elderly people is expected to reach 347 million by 2050, over a fifth of the country’s total population. In the next few years, the number of people aged 60 and above will nearly double, from 138 million in 2021 to 235 million by 2031, said the report

At the same time, more care is moving away from hospitals and into homes, as conditions like diabetes and heart disease now cause almost 60% of all deaths in India. People increasingly need ongoing support, such as physiotherapy and palliative care, at home.

Demand for childcare is also rising as more families rely on two incomes. Early childhood care and education are becoming essential, especially in cities, as traditional family support systems break down due to migration from smaller towns to big cities. Paid care services are now often the only practical option.

Emphasising the skilling and health systems dimension, Prof. Sanjay Zodpey, President, Public Health Foundation of India, said, “As care shifts from hospitals to homes, skilling and certifying the care workforce will be critical to both health outcomes and employment.”

Highlighting the gendered nature of care work, Dr Meenakshi Hembram, Additional Director (HQ) and Head of Office, DGHS, Government of NCT of Delhi, said, “Women form the backbone of India’s care economy, yet much of this work remains informal and unprotected. Formalisation, fair wages and access to social security are essential to recognising care work and building a more equitable care system.”

Turning the care economy into a formal, organised sector could bring what experts call a “triple dividend” for India:

Economic Growth and Jobs: Investing in organised care would create millions of local jobs that cannot be easily replaced by machines.

Labour Supply and Gender Equality: Good, affordable care makes it easier for more women to join the workforce. According to McKinsey, closing gender gaps could add $700 billion to India’s GDP by 2025.

Human Capital and Productivity: Care services help people stay healthy and in work for longer, boosting the country’s productivity.

Even as the care economy grows, most care work remains informal, with workers hired directly by families or through small agencies. This makes it difficult for the government to plan for the future or introduce long-term care insurance.

The report suggests India could learn from countries like Japan and South Korea, which use formal systems to assess care needs and provide insurance-led support. Creating a separate account for paid care services would help India measure the true economic impact without complicating national statistics.

The NURTURE framework outlined in this report offers a practical blueprint to operationalise this vision. By linking mission-led governance, skill pathways, regulation, technology, social protection, demand creation, and enterprise growth, it shows how India can convert an invisible workforce into a structured industry.

Care is one of the few sectors with unlimited growth potential, deep employment multipliers, and direct relevance to India’s long-term development goals. The choice before policymakers is no longer whether care should be prioritised, but whether India is ready to build it deliberately as part of its Viksit Bharat journey, the report said further.