India’s Healthcare System – Transformation, Challenges & Way Forward (2025)

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Transformation Over the Past Decade

  • India has made major progress in healthcare over the past 11 years, driven by the National Health Mission, Ayushman Bharat, and Ayushman Arogya Mandirs (1.77 lakh+).
  • Emphasis has shifted toward universal, digital, and equitable healthcare access, backed by the Ayushman Bharat Digital Mission (ABDM).

Current Healthcare Structure

  1. Primary Healthcare:
    • First point of contact; focuses on prevention and health education.
    • Delivered via Sub-Centres, PHCs, and HWCs under state/district governance.
  2. Secondary Healthcare:
    • District hospitals and CHCs for more specialized care.
  3. Tertiary Healthcare:
    • Specialized services via AIIMS, PGIMER, medical colleges.
    • Managed by both Central and State Governments.

Key Healthcare Regulatory Bodies & Policies

  • CDSCO, NMC, PCI, NABH, IRDAI regulate drugs, education, insurance, and hospital standards.
  • Acts like Drugs and Cosmetics Act (1940), NMC Act (2019), National Health Policy (2017) provide a legal and policy framework.
  • Recent reforms include e-pharmacy regulation, telemedicine guidelines, and ABDM.

Major Challenges in Indian Healthcare

  1. Rural-Urban Disparity: 80% of doctors in cities; 68% of population lives in rural areas.
  2. High Out-of-Pocket Expenditure (OOPE): Still ~47.1% in FY23.
  3. Inconsistent Quality of Care: Public sector overcrowded; substandard drugs recalled.
  4. NCD Burden Rising: 5.8 million deaths/year from NCDs; rising obesity and diabetes.
  5. Underutilization of Health Schemes: Low awareness, frauds in Ayushman Bharat as per CAG.
  6. Infrastructure Gaps: Many HWCs still lack doctors/equipment.
  7. Low Insurance Penetration: Insurance-to-GDP ratio dropped to 3.7% in 2023–24.
  8. Unregulated Private Sector: 70% patients prefer private care, often unaffordable.

Reform Measures & Way Forward

  1. Strengthen Primary Healthcare: Upgrade HWCs with staff and equipment.
  2. Boost Health Workforce: More CHOs, rural postings, and medical colleges.
  3. Expand Telemedicine: Leverage platforms like eSanjeevani to serve remote areas.
  4. Enhance PPPs: Encourage private sector in building and running healthcare facilities.
  5. Universal Insurance: Expand Ayushman Bharat to outpatient care and informal sectors.
  6. Focus on Preventive Care: Screenings, awareness campaigns, and school-based health programs.
  7. Raise Public Health Spending: Aim for 2.5% of GDP.
  8. Regulate Private Healthcare: Cap service charges, ensure transparency.
  9. Integrate Traditional Medicine: Include Ayurveda, Siddha with modern medicine.
  10. Promote Innovation: Support health-tech startups, AI diagnostics, wearable tech.

Global Lessons for India

  • UK: Tax-funded Universal Healthcare.
  • Brazil: Community-based Primary Care.
  • Estonia: Nationwide Digital Health Records.
  • Singapore: Effective Public-Private Partnerships.
  • Japan: Preventive Health Focus and early screenings.

🎯 Conclusion

India’s healthcare transformation is underway—driven by digital health, structural reforms, and public-private collaborations. Aligning reforms with SDG 3 (Good Health and Well-being) and the Global Pandemic Treaty is crucial to building a resilient, inclusive, and equitable health system for 1.4+ billion citizens.



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