Healthcare is a concurrent subject under the Constitution, making it a shared responsibility of the Central and State governments. While public and private sectors collaborate - private players focus on curative care, and the government addresses promotive, preventive, and curative aspects key gaps in the system must be addressed for equitable healthcare delivery.
Public health spending in India remains stagnant at 0.9-1% of GDP, far below global standards. This must be gradually increased to 2.5-3% of GDP. Policies should encourage private sector investments through tax incentives, such as income tax exemptions for healthcare facilities in tier 2 and tier 3 cities, and relaxed norms for establishing medical institutions in these regions.
Tax reforms, including GST exemptions on hospital procurements and reduced customs duties on critical equipment like oncology devices, are essential to lower costs and improve accessibility. Additionally, India must leverage its potential in medical tourism by streamlining visas, developing medical tourism zones, and intensifying global promotion.
Mental health investments are critical, particularly in rural areas, to address issues like distress and suicides. Insurance penetration must be expanded by including outpatient care, subsidizing premiums for low-income families, and abolishing GST on health insurance. Increased budgetary support for Urban and Rural Health Missions, with a focus on primary care and health education, is also crucial.
Finally, integrating healthcare data across public and private sectors through digital solutions will optimize resource distribution, enhance policy-making, and improve outcomes. A balanced approach combining public investment, private sector support, and digital advancements can transform India’s healthcare landscape.