“The cost of assisted living has to be cheaper and GST has to be equated to hospitals and that will push assisted living supply in the country which will help the seniors a lot. Independent living helps in a greater quality of life,” said Ankur Gupta, co-founder, Association of Senior Living India (ASLI)
Despite the massive demand for senior living and assisted living facilities, affordability and investment remain significant obstacles.
The association has also requested it waiving off stamp duty and registration fees for land purchases and joint ventures (JVs) or joint developments (JDs) intended for senior living communities.
“This would ease financial burdens, encourage private sector investment, and foster the development of senior care infrastructure. By bringing assisted living centers under the same GST bracket as hospitals will facilitates the efficient use of hospital beds by transitioning patients who require long-term care to assisted living centers,” said Adarsh Narahari, founder and managing director, Primus Senior Living.Currently, senior living facilities are taxed at standard GST rates, making them unaffordable for many seniors, particularly those reliant on pensions and savings.The association has also urged state governments to provide additional incentives for the establishment and operation of senior care facilities.
“There is a growing need to take care of our senior citizens since families are becoming more nuclear families as compared to be earlier joint families. If the government provides lower GST, priority sector status for lower interest rates and other such benefits, then these will lower the costs and more developers will participate in senior living projects which will eventually be beneficial for the population at large,” said Maneesh Mansingka, director, JK Urbanscapes Developers Ltd, which is executing a senior living project in Gurgaon in partnership with Pioneer group.
While initiatives like the PM-JAY scheme have provided significant healthcare benefits, experts said that there remains a glaring gap in senior-focused public infrastructure.
“One key area for policy reform is GST exemptions. While regular associations enjoy tax exemptions for incomes up to Rs 7,500, senior living communities face higher costs due to the essential medical and dietary services they provide. Raising the GST exemption threshold for senior residences would not only make these services more affordable but also foster growth in a sector that is crucial for our nation’s future,” said Shreya Anand, Director, Vedaanta Senior Living.
With seniors projected to make up nearly 20% of India’s population by 2050, the time to invest in their well-being is now.
With India’s senior population projected to more than double from 156.7 million in 2024 to 346 million by 2050, the need for comprehensive reforms has never been greater.
The Longitudinal Ageing Study of India (LASI) has said that 26.7% of urban elderly live alone, with only their spouse, or with individuals other than their immediate family, underscoring the urgent need for specialised senior livingsolutions.
India’s senior living market stands on the cusp of a revolution, with its current 1.3% penetration rate revealing a vast, untapped potential. This figure pales in comparison to mature markets like the United States and Australia, where penetration rates soar beyond 6%, highlighting an immense opportunity for growth and innovation in India.