Ayushman Bharat saved families ₹2.25 lakh crore in medical costs: PM Modi
Synopsis
PM Modi's Daman address put a striking number on Ayushman Bharat's impact — ₹2.25 lakh crore in household medical savings. With coverage now claimed at over 60% of families and immunisation up from 60% to 90% since 2014, the government is framing its health push as a structural shift, not just a welfare scheme.
Key Takeaways
PM Narendra Modi addressed a public gathering in Daman on 5 June , inaugurating projects worth ₹2,970 crore .
Ayushman Bharat has helped poor and middle-class families save nearly ₹2.25 lakh crore in medical expenses, according to the Prime Minister.
The scheme covers more than 60 per cent of families with health insurance of up to ₹5 lakh per beneficiary.
Child immunisation coverage rose from around 60 per cent before 2014 to nearly 90 per cent ; hospital deliveries now exceed 90 per cent of all births.
Health insurance coverage has grown from under 30 per cent of families pre-2014 to the current figure under Ayushman Bharat.
New medical college , postgraduate courses, and NAMO hospitals have been established in Silvassa and Daman .
Prime Minister Narendra Modi on Friday, 5 June said the Ayushman Bharat programme had fundamentally transformed healthcare access across India, extending health insurance coverage to more than 60 per cent of families and helping poor and middle-class households save nearly ₹2.25 lakh crore in medical expenses. The Prime Minister made these remarks at a public gathering in Daman, after inaugurating and laying the foundation stone for multiple development projects worth ₹2,970 crore.
Key Developments at the Daman Event
Speaking to the gathering, Modi described healthcare as one of the Union government's highest priorities. 'In the BJP government and in our NDA government, the first benchmark of development is change in the lives of the poor, the deprived, tribal communities and the middle class,' he said. The event marked a significant moment for Dadra and Nagar Haveli and Daman and Diu, a Union Territory that has seen considerable infrastructure investment in recent years.
What Ayushman Bharat Has Delivered
The Ayushman Bharat scheme provides eligible beneficiaries with health coverage of up to ₹5 lakh per year. 'Today, even the poorest citizen has access to an Ayushman Card and the assurance of free treatment worth up to ₹5 lakh,' Modi said. The Centre has complemented this with Ayushman Arogya Mandirs, Jan Aushadhi Kendras, and digital health initiatives — together credited with the ₹2.25 lakh crore in cumulative household savings, according to the Prime Minister.
Health Indicators: Before and After 2014
Modi cited a series of improvements in national health metrics. Hospital deliveries now account for more than 90 per cent of all births, while child immunisation coverage has risen from around 60 per cent before 2014 to nearly 90 per cent today. On health insurance, he noted that fewer than 30 per cent of families were covered by any scheme before 2014 — a figure he said Ayushman Bharat has since reversed. Notably, this positions the scheme as one of the largest publicly funded health insurance expansions in the world by beneficiary count.
Healthcare Infrastructure in Daman and Silvassa
The Prime Minister highlighted that healthcare infrastructure in Dadra and Nagar Haveli and Daman and Diu had expanded significantly, with the establishment of a medical college, postgraduate courses, and NAMO hospitals in Silvassa and Daman. 'People of this region will now benefit from even better healthcare services,' he said. Women, Modi added, had been among the greatest beneficiaries of these reforms — particularly through improvements in maternal care, institutional deliveries, and expanded health coverage.
What Comes Next
With the ₹2,970 crore in projects now formally launched, the Union Territory is set for a new phase of development investment. The Centre's continued emphasis on Ayushman Bharat suggests further expansion of the scheme's beneficiary base and service network is likely in the near term.
Point of View
Yet utilisation rates and quality of care at empanelled hospitals remain contested. The jump in immunisation and institutional deliveries reflects a genuine decade-long public health investment, but attributing all gains to a single scheme obscures the role of state governments and pre-existing programmes. The real test of Ayushman Bharat's legacy will be whether it reduces catastrophic out-of-pocket health expenditure in official household surveys — data that is more resistant to political framing.
NationPress
5 Aug 2026
Frequently Asked Questions
What is the Ayushman Bharat scheme and who does it cover?
Ayushman Bharat is a Union government health insurance scheme that provides eligible beneficiaries with free treatment worth up to ₹5 lakh per year. According to PM Modi, it now covers more than 60 per cent of Indian families, primarily targeting poor, deprived, and middle-class households.
How did PM Modi arrive at the ₹2.25 lakh crore savings figure?
PM Modi stated at the Daman event that the combined impact of Ayushman Cards and Jan Aushadhi Kendras had helped families save nearly ₹2.25 lakh crore in medical expenses. The figure was cited by the Prime Minister; no independent audit methodology was publicly disclosed at the event.
What projects were inaugurated in Daman on 5 June?
PM Modi inaugurated and laid the foundation stone for multiple development projects worth ₹2,970 crore in Daman on 5 June. The event also included the announcement of expanded healthcare infrastructure, including a medical college and NAMO hospitals in Silvassa and Daman.
How has India's health insurance coverage changed since 2014?
According to PM Modi, fewer than 30 per cent of families were covered by any health insurance scheme before 2014. Ayushman Bharat has since extended coverage to more than 60 per cent of families, representing a significant expansion of the publicly funded insurance base.
What improvements in health indicators did PM Modi cite?
Modi cited hospital deliveries exceeding 90 per cent of all births and child immunisation coverage rising from around 60 per cent before 2014 to nearly 90 per cent today. He attributed these gains to the government's broader healthcare reforms, including Ayushman Arogya Mandirs and digital health initiatives.
