The Healthcare Promise in India

GS-2 Mains

Short Notes or Revision Notes 

Question : Analyze the challenges faced in healthcare infrastructure, primary healthcare, and the healthcare workforce.


  • Healthcare is critical for India’s well-being and prosperity, but often neglected in political discourse.


  • Government committed to spending 2.5% of GDP on health by 2025.
  • This translates to Rs 8 lakh crore public health expenditure by 2025.
  • But the 2024-25 budget allocation is only Rs 90,000 crore (28%).

Public-Private Partnership

  • Needed to address healthcare needs.
  • Government should play a catalytic role, leveraging strengths of both sectors.
  • Example: Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Case Study: AB-PMJAY

  • Provides Rs 5 lakh hospitalization cover for over 60 crore people.
  • Government shifted from provider to payer role.
  • Over 34 crore beneficiary cards distributed, 27,000 hospitals empanelled (43% private, 57% public).
  • 5 crore hospitalizations already under the scheme.
  • Two-thirds of money spent goes to private hospitals, reflecting patient preference.
  • Challenges:
    • Low reimbursement rates deter private hospitals (FICCI analysis showed reimbursements cover less than 75% of costs for some procedures).
    • Lack of transparency in costing studies.
  • Solutions:
    • Address reimbursement rates.
    • Implement differential pricing model based on hospital quality, accreditation, and technology investment.

Infrastructure Gap

  • India’s hospital bed density is 1.3 beds/1,000 population (below recommended 3 beds/1,000).
  • Urban areas see private sector leading bed capacity expansion.
  • Slowdown in fresh investments, especially in tier 2 & 3 cities.
  • Solutions:
    • Grant health sector national priority status for priority sector lending.
    • Provide short-term interest-free loans, subsidized long-term loans, special land availability, tax incentives, zero-rated GST, rationalized customs duties, and production-linked incentives.

Primary Healthcare

  • Strengthening primary healthcare through Health and Wellness Centres is crucial.
  • OPD care coverage under health insurance can improve health outcomes and reduce hospitalization burden.
  • Non-communicable diseases (NCDs) are a major concern (65% of mortalities).
  • Early intervention at primary healthcare level can prevent NCD complications and hospitalizations.

Healthcare Workforce

  • Healthcare is the 4th largest employer in India.
  • Significant vacancies exist in the public health system.
  • The healthcare sector has the potential to create 4 crore jobs.


  • Investing in healthcare yields returns in human capital development, economic growth, and sustainable development.
  • Increased political will and commitment are needed to improve India’s healthcare system.




India’s New E-Vehicle Policy

GS-3 Mains

Short Notes or Revision Notes 

Question : Evaluate India’s EV market potential and the benefits of global EV players entering the market.

Attracting Global EV Manufacturers

  • New policy aims to attract global EV manufacturers like Tesla.
  • Key provisions:
    • Minimum investment: Rs 4150 Cr (∼USD 500 Mn) within 3 years.
    • Domestic value addition (DVA): 25% by year 3, 50% by year 5.
    • Customs duty benefit for initial import of EVs (capped at 40,000 units).
    • Bank guarantee to ensure adherence to investment and DVA targets.

India’s EV Market Potential

  • World’s fastest-growing auto market (3rd largest behind China and US).
  • EV market is small but growing (1.5 million units sold in 2023).
  • Government aims for 30% EV market share by 2030.
  • Potential for Tesla to build a sub-$30,000 car in India for export.

Benefits of Global EV Players

  • Increased consumer choice and competition in the EV market.
  • Access to latest technology and reduced oil dependence.
  • Boost for Make in India initiative (following Apple’s expansion).

Considerations for Policy Success

  • Closely monitor progress on investment and localization.
  • Resist pressure to relax targets for foreign companies.
  • Prioritize rapid development of charging infrastructure.


  • Tesla’s entry could be a game-changer, but government oversight is crucial.
  • Focus on investment, localization, and charging infrastructure is key.


Leave a Reply

Your email address will not be published. Required fields are marked *