India's Healthcare Crossroads: Why Our Healthcare System Needs Urgent Repair

Imagine a country racing ahead in digital innovation, boasting global-scale talent, and dreaming of Viksit Bharat — but buckling under the weight of its own healthcare system.That's where India stands today.

- (Sanjay Shukla)

Despite bold reforms and increasing awareness, the foundations of our public healthcare system remain fragile. And if we don’t act now — not in policy notes or future plans but in real investments and ground-level change — we risk turning our demographic dividend into a healthcare disaster.

Here are five reasons why the alarm bells are ringing louder than ever:

1. Chronic Underinvestment in Healthcare

Even in 2025, India spends just 2.5% of its GDP on public healthcare, expected to fall to 1.9% in FY26. This is shockingly low compared to developed nations that spend upwards of 8-10%.The direct result? Overburdened government hospitals, long wait times, staff shortages, and citizens pushed into poverty by out-of-pocket expenses. While this year's Union Budget allocated ₹99,858 crore (approx. US$11.5 billion) — a 9.78% increase over the previous year — it's still not enough when spread across 1.4 billion people.

2. Health Insurance Penetration Is Still Weak

The good news? Health insurance premium collections have grown steadily — from US$3.82 billion in FY16 to a projected US$13.07 billion in FY25.

The bad news? Most of this growth is in private plans, with millions of Indians still paying for care out-of-pocket, especially in rural and informal sectors. We urgently need to scale up awareness, penetration, and trust in public schemes like Ayushman Bharat.