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Health Sector – Indian Economy Notes

The "Right to Life" is considered essential by the Constitution, and the government is required to protect everyone's "right to health." The federal system of India, as well as the responsibilities and funding splits between the Centre and the states, have affected the health sector to a large extent. The states are in charge of planning and delivering health care to their citizens. According to some estimations, the Indian healthcare sector will be worth $774 billion by 2030. Hospitals, medical tourism, health insurance, medical equipment, telemedicine, outsourcing, clinical trials, and medical gadgets are all part of India's healthcare industry. In this article, let us see the overview of healthcare infrastructure in India, issues and challenges in the healthcare sector and government initiatives in the healthcare sector.

An Overview

Health Sector: An Overview

  • Health Infrastructure: India has 1.3 beds per 1,000 people, 0.5 pharmacists per 1,000 people, and 0.8 physicians per 1,000 people, all of which are less than half of the global average.
  • Funding: According to the Economic Survey 2020-21, India ranks 179th out of 189 nations in terms of prioritising health care in the government budget. The government's expenditure on health is modest, accounting for only 1.4% of GDP. In Ghana, for example, it is 3.5%.
  • Disease load: Although India has 17% of the world's population, it bears a disproportionately large part of the global disease burden (20%).
  • Quality of healthcare: According to the Economic Survey, India ranks 145th out of 180 nations in terms of healthcare quality and access (Global Burden of Disease Study 2016).
  • Doctors: By 2030, India will need an additional 2 million doctors to reach an ideal doctor-to-population ratio of 1:1000.
Issues and Concerns

Issues and Concerns of the Health Sector

India's healthcare sector has made considerable progress in terms of health indicators, but it still has some serious flaws in terms of service delivery due to the poor healthcare infrastructure. They are:

  • Inadequate reach: Inadequate access to basic healthcare services, a shortage of medical professionals, a lack of quality assurance, insufficient health spending, and, most significantly, insufficient research funding.
  • Inadequate Funding: One of the major concerns is the administrations' insufficient financial allocation.
  • Optimal Insurance: In India, the notion of health insurance is still unclear, and the market is undeveloped.
  • No focus on preventive Care: Preventive care is undervalued in India, despite the fact that it has been shown to be quite beneficial in alleviating a variety of difficulties for patients in terms of unhappiness and financial losses.
  • Less emphasis on medical research: In India, R&D and cutting-edge technology-led new projects receive little attention. In a circumstance like Covid-19, such technologies could be beneficial.
  • Policymaking: Policymaking is undoubtedly crucial in providing effective and efficient healthcare services. In India, the issue is one of supply rather than demand, and policymaking can help.
  • Medical Workforce Shortage: In India, there is a shortage of doctors, nurses, and other healthcare professionals. According to a study presented in Parliament by a minister, India is short 600,000 doctors.
  • Inadequate health spending: According to the National Health Policy of 2002, India devotes only 0.9% of its GDP to health care.
  • Lack of structure: Private hospitals are expensive, while state hospitals are either insufficient or lacking in basic facilities for the Indian population.
Opportunities

Opportunities in Health Care Sector

  • By 2030, the Indian healthcare sector is estimated to reach US$ 744 billion according to a report by Aspire circle.
  • Data Analytics: The National Digital Health Mission (NDHM) will bring with it the digital Health ID, which will save patient data.
    • It would aid in effective policymaking, and private firms would gain an advantage in the market introduction of innovative technology.
  • Investing privately: It would be simple for private players to spend strategically with the arrival of information technology and big data.
    • As we all know, the Indian healthcare sector is in urgent need of workers, and there is room for thousands of people.
  • Start-ups: A climate conducive to start-ups and entrepreneurship can be formed in this field with the support of the government and private stakeholders.
  • Medical Tourism: India is already one of the most popular medical tourism destinations in the world, and this industry can be effectively tapped in the next years.
Measures required

Measures required in Health Sector

  • Improving infrastructure: There is an urgent need to improve the infrastructure of public hospitals, which are overburdened as a result of India's large population.
  • Focus on private hospitals: The government should encourage private hospitals because they make a significant contribution.
    • Because the difficulties are severe and cannot be tackled just by the government, the private sector must also engage.
  • Increased efficiency: To improve the sector's capabilities and efficiency, more medical personnel must be hired.
  • Utilization of technology: In order to connect the dots in the health system, technology must be used.
    • Medical gadgets in hospitals and clinics, mobile health apps, wearables, and sensors are only a few examples of technology that should be included in this area.
  • Awareness: People should be made aware of the importance of early detection and prevention. It would also assist them in reducing their out-of-pocket expenses.
Central Government Schemes

Healthcare in India: Central Government Schemes

Although health is a state topic, the Central Government assists state governments in delivering health services through a variety of primary, secondary, and tertiary care systems.

  • The Indian government intends to expand healthcare spending to 2.5% of GDP by 2025.
  • The Ministry of Health and Family Welfare was given a budget of around Rs 86,000 crores in the Union Budget 2022-23.
  • The extension of the National Health Mission was approved by the Government of India in Budget 2022-23, with an allocated budget of roughly Rs 37,800 crores.
  • The National Nutrition Mission has set a goal of lowering undernutrition and stunting concerns by 2%.
  • The Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY) is the government's largest healthcare program.
  • A National Tele Mental Health Programme will be launched to provide access to quality mental health counselling and care services.
  • More than 3.27 lakh people have received free treatment under Ayushman Bharat - PMJAY for COVID during 2020-21.
  • The Union Budget for 2022-23 allotted Rs 10,000 crores to the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY).
Ayushman Bharat

Ayushman Bharat

  • It is a government-sponsored program for low-income families. It has the ability to cover roughly 50 crore people.
  • It covers secondary and tertiary care hospitalization for up to Rs 5 lakhs per household per year.
  • The Ayushman Bharat National Health Protection Mission Council (AB-NHPMC), chaired by the Ministry of Health and Family Welfare, would be constituted at the apex stage.
  • The scheme's benefits are transferable across the country, and beneficiaries covered by it would be able to access cashless benefits from any public or private hospital in the country.
Conclusion

Conclusion

To solve difficulties in the healthcare industry in India, a holistic strategy is required. This entails active collaboration among all stakeholders, including the governmental, private, and individual sectors. India's social determinants of health (SDH) approach could be consolidated and expanded in the year 2022. India must now maintain its existing interest in strategic health policy as a major economic pillar.

FAQs

FAQs

Question: What are the main challenges faced by the health sector in India?

Answer: The main challenges faced by the health sector in India include inadequate infrastructure, shortage of medical professionals, unequal access to healthcare services, high out-of-pocket expenses, and limited funding for public health initiatives. Additionally, issues like malnutrition, communicable diseases, and non-communicable diseases contribute to the sector's complexities.

Question: What is Ayushman Bharat?

Answer: Ayushman Bharat is a flagship health initiative by the Government of India aimed at providing comprehensive healthcare coverage. It includes two major components: Health and Wellness Centres (HWCs) and the Pradhan Mantri Jan Arogya Yojana (PM-JAY), which provides financial protection to poor and vulnerable families for secondary and tertiary care.

Question: How does public expenditure on health in India compare with global standards?

Answer: Public expenditure on health in India is lower compared to global standards. While the World Health Organization recommends at least 5% of GDP should be spent on health, India's public health expenditure hovers around 1.5-2% of GDP. This low spending impacts the quality and reach of healthcare services.

Question: What are the primary goals of the National Health Policy 2017?

Answer: The primary goals of the National Health Policy 2017 include increasing healthcare access, improving the quality of services, promoting preventive healthcare, reducing out-of-pocket expenses, and achieving universal health coverage. The policy also emphasizes strengthening the healthcare infrastructure and human resources.

Question: How has the COVID-19 pandemic impacted the Indian health sector?

Answer: The COVID-19 pandemic exposed the vulnerabilities in India's health sector, including inadequate infrastructure and resource constraints. It highlighted the need for increased investment in public health, stronger disease surveillance systems, and better preparedness for future health emergencies. However, it also led to significant advancements in telemedicine and digital health services.

MCQs

1. What is the main objective of Ayushman Bharat?

A) To promote medical research
B) To provide healthcare coverage and financial protection
C) To develop new hospitals
D) To reduce medical tourism

Answer: (B) See the Explanation

Explanation: Ayushman Bharat's main objective is to provide comprehensive healthcare coverage and financial protection to vulnerable and poor families through initiatives like Health and Wellness Centres and PM-JAY.

2. What percentage of GDP does India spend on public health expenditure?

A) 0.5%
B) 1.5-2%
C) 3-4%
D) 5%

Answer: (B) See the Explanation

Explanation: India's public health expenditure is around 1.5-2% of GDP, which is significantly lower than the WHO's recommended 5%.

3. Which health policy emphasizes universal health coverage in India?

A) National Health Policy 2002
B) National Health Policy 2017
C) National Education Policy 2020
D) National Digital Health Mission

Answer: (B) See the Explanation

Explanation: The National Health Policy 2017 emphasizes achieving universal health coverage and improving the quality and accessibility of healthcare services.

4. What is one of the main challenges in the Indian health sector?

A) Surplus of medical professionals
B) High public health expenditure
C) Shortage of medical infrastructure
D) Lack of medical research

Answer: (C) See the Explanation

Explanation: One of the main challenges in the Indian health sector is the shortage of medical infrastructure, which impacts the availability and quality of healthcare services.

5. Which of the following was significantly advanced due to the COVID-19 pandemic?

A) Medical tourism
B) Traditional medicine
C) Telemedicine and digital health services
D) Construction of new hospitals

Answer: (C) See the Explanation

Explanation: The COVID-19 pandemic led to significant advancements in telemedicine and digital health services, facilitating remote healthcare access.

GS Mains Questions and Model Answers

Q1: Discuss the main challenges facing the Indian health sector and suggest measures to overcome them.

Answer: The Indian health sector faces multiple challenges, including inadequate infrastructure, shortage of medical professionals, limited public health expenditure, and unequal access to healthcare services. High out-of-pocket expenses make healthcare unaffordable for many, and there is a significant urban-rural divide in service quality. To overcome these challenges, measures such as increased government funding, improved training and retention of healthcare professionals, and strengthening the primary healthcare system are essential. Investments in digital health infrastructure, robust health insurance coverage, and public-private partnerships can further enhance healthcare delivery. Expanding telemedicine services, particularly in rural areas, and integrating preventive healthcare strategies can also contribute to a more resilient health system.

Q2: Evaluate the impact of the National Health Policy 2017 on healthcare access and quality in India.

Answer: The National Health Policy 2017 has had a significant impact on healthcare access and quality in India by prioritizing universal health coverage, strengthening primary healthcare, and enhancing infrastructure. The policy aims to reduce out-of-pocket expenses and improve health outcomes through preventive and promotive healthcare initiatives. It has fostered the establishment of Health and Wellness Centres (HWCs) and promoted the use of technology to streamline service delivery. However, challenges remain in fully implementing the policy, such as funding gaps and regional disparities in service delivery. Strengthening public-private partnerships, enhancing training for healthcare professionals, and increasing public health expenditure are necessary to realize the full potential of the policy.

Q3: Analyze the role of public expenditure in improving the health sector in India. How does it compare with global standards?

Answer: Public expenditure plays a crucial role in improving the health sector by funding infrastructure development, training healthcare professionals, and providing accessible services. In India, public health expenditure is around 1.5-2% of GDP, which is low compared to the global standard recommended by the WHO of at least 5% of GDP. This low expenditure limits the reach and quality of healthcare services, resulting in high out-of-pocket expenses for citizens. To align with global standards, India needs to increase its health budget, ensure efficient allocation of resources, and invest in preventive and primary care. Strengthening public health policies and encouraging investments in the health sector can significantly improve access and quality, leading to better health outcomes for the population.

Previous Year Questions on Health Sector

1. UPSC CSE Prelims 2021:

Question: The Ayushman Bharat scheme includes which of the following components?

A) National Health Mission
B) Health and Wellness Centres and PM-JAY
C) National Urban Health Mission
D) Swachh Bharat Mission

Answer: (B)

Explanation: The Ayushman Bharat scheme includes Health and Wellness Centres and the Pradhan Mantri Jan Arogya Yojana (PM-JAY), aimed at providing comprehensive and accessible healthcare.

2. UPSC CSE Mains 2020 (GS Paper 2):

Question: "Discuss the effectiveness of healthcare initiatives in India, such as Ayushman Bharat, in improving healthcare access and reducing out-of-pocket expenses."

Answer: Healthcare initiatives such as Ayushman Bharat have significantly contributed to improving healthcare access and reducing out-of-pocket expenses for low-income families. The Pradhan Mantri Jan Arogya Yojana (PM-JAY) under Ayushman Bharat provides financial protection for secondary and tertiary care, benefiting millions. The establishment of Health and Wellness Centres (HWCs) has strengthened primary healthcare, promoting preventive care and early diagnosis. However, the effectiveness of these initiatives is limited by challenges such as uneven implementation, inadequate infrastructure, and a shortage of medical professionals in rural areas. To enhance the impact, the government should focus on strengthening public health systems, expanding infrastructure, training healthcare workers, and leveraging technology for better outreach and efficiency.

*The article might have information for the previous academic years, please refer the official website of the exam.
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