HomeHealth Evolution of the health care policy framework in India

Evolution of the health care policy framework in India

by Richa
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By Janak Raj, Senior Fellow; Aashi Gupta, Research Associate; and Shauryavir Dalal, Former Research Assistant at CSEP, New Delhi

health care : policy framework examining its primary goals, challenges and outcomes over time. The foundation for India’s healthcare policies was laid by the Bhore Committee’s comprehensive 1946 report.

However in the initial decades after independence the focus was primarily on controlling and eradicating communicable diseases. It wasn’t until 1983 that India established its first National Health Policy (NHP), aimed at improving healthcare services across the country.

The NHP-1983 was succeeded by NHP-2002 which itself was later replaced by NHP-2017. Alongside these national policies several key initiatives were launched to address various aspects of the healthcare system.

These included the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) the National Rural Health Mission (NHRM) which was integrated into the National Health Mission in 2015—Rashtriya Swasthya Bima Yojana (RSBY), Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM).

Across these policies and initiatives several recurring themes emerged. Firstly there was a consistent emphasis on increasing public health expenditure and reducing the financial burden on individuals through out-of-pocket or catastrophic health spending.

Secondly addressing the disparities in healthcare between rural and urban areas was a key focus. Thirdly, efforts were made to enhance primary healthcare services. Lastly achieving universal health coverage remained a central objective throughout these policy frameworks.

Since independence India has made notable progress in healthcare evidenced by improvements in life expectancy reductions in child and maternal mortality rates and the development of a substantial workforce of medical and paramedical professionals.

Despite these advances, health care has remained a lower priority with public health spending at approximately 1% of Gross Domestic Product (GDP) a figure significantly below that of many similar countries. As a result out-of-pocket health expenses in India are among the highest globally driving around 55 million people into poverty each year due to catastrophic health costs.

The disparity between rural and urban healthcare services remains pronounced with primary health care often underfunded and neglected. The ambition of achieving universal health coverage (UHC) continues to be out of reach, primarily due to insufficient public health funding.

Global research and the experiences of other nations indicate that reaching UHC requires increasing public health expenditure to at least 5% of GDP. To make substantial progress, both central and state governments must commit to this funding target within a specified timeframe.
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Health care: Innovations for an inclusive future

India’s healthcare sector is experiencing exceptional growth propelled not only by rising incomes but also by a mix of transformative factors. As people’s financial resources increase so does their demand for a wider range of services including healthcare.
This rising demand is driven by several factors: an evolving healthcare landscape, greater health insurance coverage a surge in lifestyle-related diseases a growing elderly population increased health awareness and the broader availability of services often delivered directly to homes.

On the supply side, the sector is undergoing a revolutionary shift fueled by government initiatives technological innovations, and growing private-sector investment. This dynamic combination is transforming India’s healthcare landscape making it more accessible and efficient while expanding its reach and capabilities.
As India works towards achieving universal health coverage innovation is crucial in making healthcare more affordable and accessible. To bridge existing gaps in the health system disruptive innovations are essential. The sector is already a hub of cutting-edge advancements with rapid progress in diagnostics therapeutics, medical devices, genomics, and digital health.

India’s dynamic ecosystem characterized by a network of entrepreneurs and skilled professionals is driving these breakthroughs.
Supportive government policies further enhance this potential. With continued focus on innovation and policy support, India has the opportunity not only to improve healthcare for its own citizens but also to set a global standard for affordable, high-quality care.
In recent years, several innovations in healthcare have become integral to our daily lives enhancing access to medical services and lowering costs. Telemedicine, for instance allows patients to consult with healthcare providers remotely offering convenience, saving time and expediting processes.

It also helps bridge the gap between urban and rural areas and addresses the shortage of medical specialists. Another notable development is a Delhi-based startup revolutionizing cardiac care with an affordable portable ECG device.
Priced at just ₹4,000 after discounts on popular e-commerce platforms this device has minimal operating costs. It enables clinics to provide ECGs for free as a point-of-care (PoC) diagnostic test, further improving accessibility and reducing expenses in cardiac care.
Indian pharmaceuticals have made a significant impact on global healthcare. With its skilled workforce and competitive costs, India has become a leading supplier of high-quality generic drugs worldwide. This contribution is particularly important in the treatment of HIV/AIDS, tuberculosis, and cancer helping to make essential medications more accessible and affordable around the globe.
India has also excelled in scalable digital health solutions, which became particularly prominent during the Covid-19 pandemic. The country swiftly developed and rolled out vaccines initiating the world’s largest immunization program in January 2021.

Through the Co-WIN app, India administered over two billion vaccines in just 18 months, demonstrating its robust digital infrastructure. At its peak, Co-WIN facilitated the vaccination of 14,000 people per minute, surpassing the combined efforts of the United States, Brazil, Indonesia and Japan.

Additionally, the e-Sanjeevani portal managed by the health ministry, has become another exemplary digital health initiative, serving over 27 crore patients across India to date.
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The rise of IoT devices has opened up new possibilities for innovations in the health sector. These devices enable remote monitoring of individuals health status and vital signs which helps reduce costs ensures timely interventions and enhances treatment effectiveness.
Likewise advancements in Artificial Intelligence (AI) and machine learning (ML) are leading to more accurate and faster diagnostics ultimately improving health outcomes.
Collaborations between academia industry and government have yielded impressive results.

For instance IIT Roorkee partnered with AIIMS Rishikesh to create an affordable portable ventilator designed to assist Covid-19 patients. Similarly scientists at the Dr. APJ Abdul Kalam Missile Complex, RCI, and DRDO-Hyderabad created a portable affordable ventilator named Deven to meet the high demand for ventilators during the pandemic.
Additionally the Bureau of Indian Standards has recently approved 82 research and development projects led by faculty members from Indian Institutes of Technology and National Institutes of Technology.
These projects focus on advanced fields such as AI, blockchain, medical devices, renewable energy, sustainability smart cities and digital transformation.

Despite many success stories India has the potential to do even more to address its significant health sector needs. The government needs to take a more active role in accelerating and expanding innovations to fully leverage this potential.

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