The Government’s Role in Redefining India’s Healthcare Ecosystem

Although we don’t often wish to revisit the pandemic, ever since Covid-19 struck, prioritising healthy diets and preventive care has become a sustained commitment for many. This trend, enhanced by technological advancements, a thriving population, an evolving economy, and a proactive approach by the government, has resulted in the entire healthcare sector undergoing a significant transformation.

Experts agree that the core of this change has been brought about by the National Health Mission and the Ayushman Bharat initiatives, which have led to the development of over 1.77 lakh Ayushman Arogya Mandirs and the scaled digital platforms that have expanded primary care access across the country. 

 

These are supervised by an ever-evolving regulatory framework led by bodies such as the National Medical Commission (NMC), CDSCO, IRDAI, and NABH, and are woven into India’s three-tier system of health care – primary, secondary and tertiary. 

 

The turnaround of the Indian healthcare ecosystem is also demonstrated by the sheer number of health-tech startups focusing on quality and affordable innovations.

Surmounting the Challenges Faced by the Healthcare Sector

There is a vast urban-rural divide, with over 80% of healthcare professionals focusing on cities whereas about 70% of Indians reside in rural areas. Many treatments are considered beyond economic reach, as even the out-of-pocket expenses at ‘free’ medical institutes can be debilitating for low-income families. Increasingly, Indians are falling prey to non-communicable diseases (NCDs). According to recent studies, one in four Indians is at risk of dying from an NCD before the age of 70.

Inadequate and costly care delivery, formalities, and under-regulation often prove to be obstacles where timely treatment is essential. Surprisingly, health insurance has dropped from 4% to 3.7% of GDP between FY23 and FY24. And while helpful initiatives exist, awareness and implementation are not always optimal.

Governmental Push That Has Made a Difference

National Health Mission (NHM): The government introduced the National Health Mission (NHM) in 2013 with an objective to provide financial assistance as well as technical assistance in rural areas. With the efforts of the government, there has been an increase in investment as well as the services that are provided as a part of the National Health Mission (NHM)

• Ayushman Bharat: The Ayushman Bharat health scheme was launched by the government to improve the healthcare system at primary, secondary, and tertiary levels. There are 2 key components of this scheme: Pradhan Mantri Jan Arogya Yojana (PM-JAY): This scheme was launched in 2018 to provide a health cover of ₹ 5,00,000 for every family per year for secondary and tertiary care at the hospital to over 10.74 crores poor and vulnerable families. The scheme has benefited around 55 crore people. Ayushman Arogya Mandirs: The initiative focuses on providing healthcare facilities in rural and remote areas. 

• Ayushman Vay Vandana: This scheme was launched in 2024 to further increase the benefits of Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (PM-JAY) to elderly citizens aged 70 or above. Around 58 lakh senior citizens have already enrolled for this scheme

• Ayushman Bharat Digital Mission (ABDM): The scheme focuses on bridging the gap between different stakeholders, including doctors, patients, policymakers, etc. It includes the Ayushman Bharat Health Account (ABHA), which allows people to manage important documents like their health records in a more seamless manner

• Pradhan Mantri - Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): This initiative was introduced for the period 2021–22 to 2025–26. It aims to provide healthcare services at the primary, secondary, and tertiary levels. 

• National Telemedicine Service (e-Sanjeevani): To provide easy and timely access to healthcare facilities government introduced this scheme. It helps the people easily get in touch with a doctor or a medical specialist. The initiative has seen over 14 crore teleconsultations so far.
  
  
  

What Needs to Evolve

Strategic and ground up reforms in primary care are of essence, with a focus on health and wellness centres. Consistent training and incentivisation must go hand in hand with purpose and advocacy.
The scope of public-private partnerships (PPPs) needs to be increased as they are known to yield optimal results, especially in remote areas. Similarly, insurance coverage must be broadened to include outpatient care and diagnostics. Due diligence is an essential part of insurance; however, processes can be made more transparent, faster, and simplified through digital solutions.

In a population-dense country like India, nationwide campaigns and advocacy through traditional and digital channels have always played a critical role. Contemporary models need to blend with traditional belief systems like Ayurveda and Unani medicines to build the requisite confidence and trust among a broader section of the population.

In this context, large-scale trade exhibitions and knowledge-sharing platforms and conferences can play an even more vital role in complementing government efforts. These forums enable multi-stakeholder collaboration, provide information on policy, competitor analysis, practices, and shine a spotlight on scalable innovations.

 

The Way Forward

Even though India’s healthcare sector has come a long way, there is still a need to resolve the current challenges by improving the infrastructure facilities, increasing investment, and providing advanced technology, focusing on public-private partnerships, and creating a robust regulatory framework.  To take a step forward towards the vision of Viksit Bharat, the healthcare system in India needs to be affordable, inclusive, and advanced.