Health
This article explores the multifaceted transformation of India’s health sector, emphasising key advancements in digital systems and infrastructure, while also drawing attention to persistent challenges such as limited financing and the growing burden of non-communicable diseases (NCDs).
India’s Healthcare Transformation: Building Resilience Amid Rising Disease Burden and Structural Challenges
India’s health sector is currently at a decisive juncture, shaped by the combined pressure of persistent infectious diseases and the rapidly expanding burden of non-communicable disorders (NCDs). A 2023 Lancet study indicates that more than 100 million Indians are living with diabetes, while nearly 130 million remain pre-diabetic, highlighting a vast and urgent preventive health challenge. Despite these realities, public health expenditure continues to remain close to 2% of GDP. At the same time, flagship programmes such as Ayushman Bharat are being steadily expanded. Given that India has one of the youngest populations in the world, the effectiveness of its healthcare delivery system will play a decisive role in converting this demographic dividend into a strong and healthy human capital base, thereby enabling the creation of a resilient healthcare ecosystem.
How is India Building a Resilient Healthcare Ecosystem?
Interoperable Digital Health Ecosystem:
India is making significant strides toward establishing an integrated digital health framework that reduces information gaps and strengthens continuity of care across both public and private providers. This interoperable system creates a foundational data architecture that supports long-term and predictive health monitoring. Under the Ayushman Bharat Digital Mission (ABDM), more than 800 million Ayushman Bharat Health Accounts (ABHA) have been generated to maintain patient health records. Additionally, over 4.85 lakh health facilities have been incorporated into a national registry, ensuring a reliable and data-driven clinical ecosystem. Teleconsultation services through Ayushman Arogya Mandirs (AAMs) have further improved access to specialist care, particularly in underserved areas, with over 41 crore consultations recorded as of October 2025.
Comprehensive Primary Care and Preventive Health:
India is gradually transitioning from selective healthcare delivery to a more comprehensive primary care model that focuses on early detection and management of chronic diseases. This approach directly addresses the rising burden of NCDs by enabling grassroots-level screening and timely intervention. More than 1.8 lakh Ayushman Arogya Mandirs are currently operational, focusing on screening populations vulnerable to metabolic disorders. Since 2017, around 41.5 crore individuals have been screened for hypertension, with 7.1 crore diagnosed and 5.7 crore formally recorded. Similarly, diabetes screening has covered 41.3 crore people, resulting in 4.7 crore detections and 3.4 crore individuals receiving treatment.
Demand-Side Financial Risk Protection:
Publicly funded health insurance is playing a crucial role in shielding vulnerable populations from catastrophic medical expenses. The Pradhan Mantri Jan Arogya Yojana (PM-JAY) targets nearly 120 million individuals in the bottom 40% of the population, offering annual coverage of ₹5 lakh per household. As of February 2026, the scheme has authorized 11.69 crore hospital admissions, including 6.74 crore in private hospitals. This shift towards pooled risk mechanisms is gradually reducing dependence on out-of-pocket expenditure and encouraging private healthcare investment in Tier-2 and Tier-3 cities.
State-Capital Convergence in Indigenous MedTech:
India is also strengthening its domestic medical manufacturing ecosystem to reduce dependence on global supply chains. Three bulk drug parks are being developed in Andhra Pradesh, Gujarat, and Himachal Pradesh. The Scheme for Promotion of Research and Innovation in Pharma MedTech (PRIP) is promoting innovation beyond generic drug manufacturing. Meanwhile, the Production Linked Incentive (PLI) scheme for medical devices has generated over ₹12,000 crore in sales, including ₹5,800 crore in exports, and has attracted investments exceeding ₹1,000 crore.
Deeptech and Biomanufacturing Integration:
Efforts to build a robust deeptech and biomanufacturing ecosystem are enhancing India’s capabilities in precision medicine and epidemic preparedness. The BioE3 policy aims to expand India’s bio-economy to $300 billion by 2030. Additionally, the Indian Council of Medical Research (ICMR) is deploying i-Drone networks and AI-driven registries to improve vaccine and blood supply logistics in remote regions. The Biopharma SHAKTI initiative, announced in the Union Budget 2026–27 with an outlay of ₹10,000 crore, is designed to position India as a global hub for biopharmaceutical manufacturing.
Decentralized Epidemiological Surveillance:
India is investing in a decentralized, technology-driven surveillance system to improve early detection and response to health threats. The PM-ABHIM initiative allocates ₹64,000 crore to establish integrated public health laboratories across districts. The GenomeIndia project has completed sequencing of over 10,000 individuals, contributing to a diverse genomic database. Additionally, the UMMID initiative has set up NIDAN Kendras for prenatal screening, newborn testing, and genetic counselling.
Expansion of Medical Human Capital:
The country has significantly expanded its medical education infrastructure, with the number of medical colleges increasing from 387 in 2014 to over 810 by December 2025. Furthermore, 157 new nursing colleges are being established alongside existing medical institutions to address the shortage of allied healthcare professionals.
Strategic Global Health Diplomacy:
India continues to enhance its global healthcare footprint through strategic diplomacy. By supplying over 50% of global vaccine demand and hosting the WHO Global Centre for Traditional Medicine in Gujarat, India is strengthening its position as a key player in global health security. Additionally, medical value travel is growing, with over 4.5 lakh foreign patients visiting India for treatment between January and November 2025.
What are the Key Issues Associated with India’s Healthcare Ecosystem?
Despite progress, major challenges remain. Public health financing is still below the National Health Policy target of 2.5% of GDP, limiting the expansion of healthcare services. Out-of-pocket expenditure continues to account for 39% of total health spending, pushing many households into poverty. A sharp rural-urban divide persists, with 73% of hospital beds located in urban areas despite 69% of the population residing in rural regions.
The burden of non-communicable diseases is rising sharply, with over 101 million individuals living with diabetes, posing long-term economic risks. Digital health adoption also remains uneven, with only about 10% of users actively utilizing digital platforms despite widespread awareness.
Other concerns include fragmented cancer care systems, shortages of over 6 million allied healthcare professionals, inefficiencies in fiscal transfers, procurement delays leading to drug shortages, and the growing threat of antimicrobial resistance. Additionally, gaps in “One Health” surveillance and delayed response to zoonotic diseases further expose vulnerabilities in the system.
What Measures are Needed to Strengthen India’s Healthcare Ecosystem?
To address these challenges, experts recommend adopting a “Health-in-All-Policies” approach that integrates health considerations across sectors such as urban planning, agriculture, and environment. Establishing a blended public-private health financing model can help bridge funding gaps and encourage investment in underserved regions.
Transitioning to value-based care models, where reimbursements are linked to patient outcomes, can improve efficiency and reduce unnecessary procedures. Strengthening primary healthcare centers into integrated hubs offering medical, legal, and social support can enhance accessibility for marginalized communities.
Further, developing regional MedTech clusters, professionalizing public health management, and promoting genomic medicine can significantly improve healthcare outcomes. Integrating a unified “One Health” surveillance system and enforcing stricter antimicrobial stewardship measures are also critical for long-term resilience.
Conclusion
India’s journey toward a resilient healthcare system requires a fundamental shift from fragmented and reactive interventions to a cohesive, preventive, and data-driven framework. Bridging the rural-urban divide, strengthening financial investments, and institutionalizing integrated governance models will be essential. Achieving the target of 2.5% of GDP in health spending is not merely a fiscal benchmark but a strategic necessity. Ultimately, a strong and resilient healthcare ecosystem will form the backbone of India’s ambition to emerge as a developed economy by 2047.
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