Health Sector in

India
clearias.com/health-sector-in-
india/

ClearIAS Team February 14, 2023

What is the current

Scenario of the Health Care
Sector of India? What are
the major concerns? How
to use India’s huge
potential in the health
sector to rectify the
problems? Read further to
learn more about the
Health Sector in India.

The Constitution considers

the “Right to Life” to be
essential, and the
government is required to
protect everyone’s “Right to
Health.”

The healthcare industry in

India includes hospitals,
medical tourism, health
insurance, medical
equipment, telemedicine,
outsourcing, clinical trials,
and medical gadgets.

The public and private

sectors make up the two
main components of India’s
healthcare delivery system.

Table of Contents

Toggle
The Scenario of the
Health Sector in India
Health
Infrastructure
Quality of Health
Care Services
Doctors
Disease Burden
Funding
Challenges in Health
Sector
Inadequate
Accessibility
Insufficient
Funding
No focus on
Preventive Care
Shortage of
Medical
Workforce
Lack of
Infrastructure
Optimal
Insurance
Policymaking
Potential in Health Care
Sector in India
Strong Demand
Innovative
Technologies
Rising Manpower
Cost Competent
Attractive
Opportunities
Hub of Medical
Tourism
Measures Required in
the Health Sector
Major Steps Taken by
the Government
Conclusion
The Scenario of the
Health Sector in India
Let us look at an overview of
the current healthcare sector
in India

Health Infrastructure
The government, or public
healthcare system,
concentrates on establishing
primary healthcare centres
(PHCs) in rural areas while
maintaining a small number
of secondary and tertiary
care facilities in major cities.
The majority of secondary,
tertiary, and quaternary care
facilities are run by the
private sector.

India has 1.3 beds per 1,000

people, 0.5 pharmacists per
1,000 people, and 0.8
physicians per 1,000 people,
which are all less than half
the global average.

Quality of Health Care

Services
India is ranked 145th out of
180 nations in terms of the
accessibility and quality of
healthcare, according to the
Economic Survey (Global
Burden of Disease Study
2016)

Doctors
To achieve an ideal doctor-
to-population ratio of 1:1000
by 2030, India will require an
additional 2 million doctors.

Disease Burden
Despite having 17% of the
world’s population, India
bears a disproportionately
large portion of the global
disease burden (20%).

Funding
India’s public healthcare
spending was 2.1% of GDP
in 2021–2022, up from 1.8%
in 2020–2021, according to
the Economic Survey of
2022.

Challenges in Health
Sector
Although India’s health
sector has made significant
progress in terms of health
indicators, it still has some
serious flaws in service
delivery due to inadequate
healthcare infrastructure.

Inadequate
Accessibility
Insufficient access to basic
healthcare services to all,
due to a shortage of medical
professionals, a lack of
quality assurance, and
insufficient health spending.

Insufficient Funding
One of the major concerns is
the administration’s lack of
financial resources and
insufficient funding for
research and development.

India’s government will only

spend 2.1% of its GDP on
healthcare in 2021–22,
compared to 10% for Japan,
Canada, and France.

No focus on Preventive
Care
Despite being shown to be
quite beneficial in alleviating
a variety of difficulties for
patients in terms of
unhappiness and financial
losses, preventive care is
undervalued in India.

Shortage of Medical
Workforce
Doctors, nurses, and other
healthcare professionals are
in short supply in India.
According to a minister’s
study presented in
Parliament, India is short
600,000 doctors.

Lack of Infrastructure
Private hospitals are
expensive, whereas
Government hospitals are
either inadequate or lacking
in basic facilities for the
Indian population.

Optimal Insurance
The concept of health
insurance is still unclear in
India, and the market is
underdeveloped.

Policymaking
Policymaking is undeniably
important in providing
effective and efficient
healthcare services. The
problem in India is one of
supply rather than demand,
and policy can help.

Potential in Health
Care Sector in India
Despite the challenges, there
were opportunities. The
Indian healthcare system has
a unique opportunity to
advance while taking stock of
the past and getting ready for
the future while keeping the
welfare of its people in mind.

Strong Demand
According to Aspire Circle,
the Indian healthcare sector
is expected to reach $744
billion by 2030, driven by
greater access to insurance,
better health awareness,
lifestyle diseases, and rising
income.

Innovative Technologies
As part of the National Digital
Health Mission (NDHM), the
digital Health ID will be
introduced, which will save
patient data. It would aid in
effective policymaking, and
private firms would benefit
from a competitive
advantage in the market
introduction of innovative
technology.

With the advent of

information technology and
big data, it would be simple
for private players to spend
strategically.

Rising Manpower
The abundance of highly
qualified medical personnel
in India is a competitive
advantage. With 4.7 million
workers as of 2021, the
Indian healthcare industry is
one of the country’s largest
employers.

From 0.83 million in 2010 to

1.3 million in November
2021, the number of
allopathic doctors with
recognised medical
qualifications (under the
I.M.C Act) registered with
state medical
councils/national medical
council
Cost Competent
India’s costs are competitive
with those of its countries in
Asia and the West. Surgery
in India costs roughly a tenth
of what it does in the US or
Western Europe.

Attractive Opportunities
Two vaccines Bharat
Biotech’s Covaxin and
Oxford-Covishield,
AstraZeneca’s both made by
SII were critical in protecting
the Indian population from
COVID-19.

India has emerged as a hub

for R&D activities for
international players due to
its relatively low cost of
clinical research.

With the help of the

government and private
stakeholders, a climate
conducive to start-ups and
entrepreneurship can be
created in this field.

Hub of Medical Tourism

India is already one of the
world’s most popular medical
tourism destinations, and this
industry has significant
potential in the coming years.

The low cost of medical

services has resulted in a
rise in the country’s medical
tourism, attracting patients
from across the world.

India possesses all the

necessary factors for this
industry to grow rapidly,
including a sizable
population, a strong
pharmaceutical and medical
supply chain, more than 750
million smartphone users, the
third-largest global start-up
pool with simple access to
Venture Capital funding, and
innovative tech
entrepreneurs looking to
address global healthcare
issues.

Measures Required in
the Health Sector
These are the following
major measures for
improving the health sector in
India:
Strengthening the
Infrastructure:
Because of India’s
large population, there
is an urgent need to
improve the
infrastructure of public
hospitals, which are
overburdened.
Encourage Private
Hospitals: The
government should
support private
hospitals because they
contribute significantly
to the Indian Health
sector. The challenges
are severe and cannot
be addressed solely by
the government, the
private sector must also
participate with
Government for the
public good.
Increased efficiency:
More medical
personnel must be
hired in order to
improve the sector’s
capabilities and
efficiency.
Utilization of
Technology:
Technology must be
used to connect the
dots in the health
system. Medical
devices in hospitals
and clinics, mobile
health apps, wearables,
and sensors are just a
few examples of
technology that should
be considered.
Improving Mental
Health Care Services:
Increasing financing for
mental health services,
educating healthcare
professionals on how to
effectively treat mental
health issues, and
lowering the stigma
attached to mental
illness are all part of
improving mental
health services.
Addressing the Root
Causes of Health
Disparities: To
address the social
determinants of health
and reduce overall
health inequities, the
healthcare system
should collaborate with
other sectors, such as
education, housing,
and sanitation.
Sustainable Health
governance: To
promote more effective
and efficient healthcare
services, sustainable
health governance may
involve implementing
better management
systems, bolstering
healthcare regulatory
organisations, and
developing
independent oversight
mechanisms.
 Make Public
Awareness: People
should be made aware
of the value of early
detection and
prevention. It would
also help them save
money on out-of-pocket
expenses.
One Health Approach:
The need for communal
health programmes that
address a healthy
environment, healthy
animals, and healthy
people is urgent. This is
known as the “one
health approach,” and it
aims to address these
connections between
human and animal
health.

Also read: Medical Device

Sector in India

Major Steps Taken by

the Government
Despite the fact that health is
a state issue, the Central
Government assists state
governments in providing
health services through a
variety of primary, secondary,
and tertiary care systems.

In the Union Budget 2023-

24:

Rs. 89,155 crore was

allocated to the health
sector, an increase of
over 13% from the
previous budget.
Allocated Rs. 6835
crore for establishing
22 new All India
Institute of Medical
Sciences (AIIMS).
Additionally, the
National Health
Mission’s budget
allocation increased
from Rs. 28,974 crore
in the preceding years
to Rs. 29,085 crore in
the current 2023–24
budget.
Budgetary support for
the National Digital
Health Mission
increased from the
previous year’s Rs. 140
crore to the current Rs.
341 crore.
 The funds allotted for
autonomous bodies
were also scaled up,
going from Rs. 10,348
crore in the previous
budgeted allocation to
Rs. 17,322 crore at the
moment.

In order to promote medical

tourism in the country, the
government of India is
extending the e-medical
visa facility to the citizens of
156 countries.

Prime Minister Mr. Narendra

Modi introduced the
Ayushman Bharat Digital
Mission in September 2021.
The endeavour will link the
digital health solutions of
hospitals across the country.
Every citizen will now have
access to a digital health ID,
and their medical records will
be safeguarded online.

In July 2021, the Ministry of

Tourism established the
‘National Medical &
Wellness Tourism Board’ to
promote medical and
wellness tourism in India.
In July 2021, the Union
Cabinet approved the
continuation of the National
Ayush Mission, responsible
for the development of
traditional medicines in India,
as a centrally sponsored
scheme until 2026.

In July 2021, the Union

Cabinet approved the MoU
between India and
Denmark on cooperation in
health and medicine. The
agreement will focus on joint
initiatives and technology
development in the health
sector, with the aim of
improving public health
status of the population of
both countries.

Conclusion
India is a land full of
opportunities for Health Care
and Services. Along with
being one of the top places
for high-end diagnostic
services, the nation has
made significant capital
investments in advanced
diagnostic facilities to serve a
larger proportion of the
population.
Future demand for
healthcare services is
anticipated to increase due to
factors such as advancing
income levels, an ageing
population, rising health
awareness, and shifting
attitudes toward preventative
healthcare.

A comprehensive strategy is
required to address issues in
India’s healthcare industry.
This necessitates active
collaboration between all
stakeholders, including the
public, private, and individual
sectors.

In 2023, India’s approach to

social determinants of health
(SDH) could be consolidated
and expanded. As a major
economic pillar, India must
now maintain its existing
interest in strategic health
policy.

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Article written by: Aryadevi
ES