Total estimated allocation of health budget in India FY 2018-2024

In financial year 2024, the estimated total budget allotted for the Indian health sector amounted to about 985 billion Indian rupees. A consistent increase in the allocation of health budget has been seen over the years since the financial year 2018.

Healthcare in India

The Indian healthcare system consists of a network of private and public healthcare sectors that offer a variety of medical services to over 1.4 billion individuals. Most Indians prefer private healthcare over public healthcare in terms of hospitals, services, and physicians. Additionally, the overall size of the healthcare market stood at 372 billion U.S. dollars in 2022 and is likely to grow in the future. A new horizon of opportunities and investments has emerged in pharmaceuticals, medical technology, and services for the advancement of this sector.

Private healthcare expenditure

Even though the government has increased the spending of the country’s GDP on healthcare to over two percent, patients pay for more than half of medical expenses directly at the time of treatment. As a result, the out-of-pocket expenses were roughly about 51 percent of the current health expenditure in India. These expenditures still make up a large portion of health spending in the country.