India's Healthcare System: Challenges and Steps for Improvement

Health care is considered a major pillar of the country's socio-economic progress, and in 2023 India's health expenditure was 7.5 % of total GDP, which is slightly above the global average. In this context, the National Health Policy 2023 established disease prevention, primary care and digital health as key pillars, taking steps toward broadly strengthening the public health system. The government allocated an additional 2,500 crore rupees to the public health budget in the fiscal year 2024, which will accelerate the modernization of existing hospitals and the establishment of new health centers.

The major measures implemented by the central government in 2024 include the expansion of the National Ayushman Bharat Health Programme (NAHP), the establishment of 150 new telemedicine units in Primary Health Centers (PHC), and the creation of a 5,000 crore rupee Ayurvedic and traditional medicine fund. These initiatives aim to address the shortage of specialist doctors in rural areas and provide patients with appropriate treatment at an early stage. At the same time, the National Health Insurance Scheme (AB-PMJAY) covered 12 crore families in 2024, resulting in a notable reduction in the financial burden on people hospitalized.

The private health sector also recorded an 8 % annual growth in 2024, with multinational hospital groups opening 1,200 new facilities and expanding 3,500 hospital beds. Private insurance companies collected premiums of 4,200 crore rupees in 2024, improving health coverage for the middle class. However, the cost disparity between private and public sectors remains, and regulatory bodies have issued new directives for price control.

To strengthen the rural health framework, 1,200 new Health and Nutrition Centers (HPC) were established in 2024, each staffed with one doctor, two nurses and one pharmacist. Additionally, under the digital health initiative, 3,500 rural clinics were connected to an electronic medical record (EMR) system, improving the accuracy of patient data and continuity of care. These centers achieved up to a 15 % success rate in preventing seasonal diseases such as dengue and malaria.

Looking ahead, experts believe that by 2025 India aims to raise its health care system to 9 % of GDP, promoting partnerships between public and private sectors. Achieving this goal is considered to require a 25 % increase in health worker training, an investment of 1,200 crore rupees in research and development, and a 10 % expansion of telehealth services in rural areas. Coordinated implementation of all these measures could make India's health system more accessible, affordable and disease-prevention‑focused.