India's Healthcare Investment Anticipated to Reach 5% of GDP by 2030: Study
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Synopsis
A recent report highlights that India’s healthcare expenditure is expected to escalate from 3.3% to 5% of GDP by 2030, driven by reforms in insurance, medical education, and hospital capacity.
Key Takeaways
- India's healthcare spending projected to rise to 5% of GDP by 2030.
- Current per capita healthcare expenditure is only around $80.
- Government efforts are enhancing healthcare access for rural populations.
- Health insurance coverage has doubled to 40% in the last decade.
- Expansion of hospital bed capacity expected in the coming years.
New Delhi, April 7 (NationPress) Healthcare investment in India is projected to rise from 3.3 percent to 5 percent of its GDP by the year 2030, according to a report released on Monday.
While global healthcare expenses approximate $10 trillion, India's current expenditure is about 3.3 percent of its GDP, translating to a per capita spending of merely $80.
The report from CareEdge Ratings indicates that with essential reforms, such as the doubled medical seats, enhanced insurance coverage (currently covering around 40 percent of the population), and an increase in hospital bed capacity, India's healthcare system is set to significantly improve by 2030.
As stated in the report, India's lower per capita income compared to other nations has contributed to the underfunding of healthcare infrastructure and limited healthcare expenditures.
Nevertheless, the government is amplifying its commitment to boost healthcare spending, which is promising for rural communities and economically disadvantaged groups that rely heavily on public health services.
Over the past decade, India's health insurance coverage (both public and private) has seen a remarkable increase, surpassing 40 percent in 2023 due to heightened awareness and government insurance programs.
Moreover, the recent extension of the Ayushman Bharat initiative to include citizens aged 70 years and older is expected to enhance health insurance coverage to approximately 50 percent by 2025.
India is forecasted to add around 25,000 to 30,000 hospital beds in the next three years, driven by investments from both public and private sectors.
In the last ten years, substantial funding in medical education has led to nearly doubled undergraduate and postgraduate medical seats in colleges.
The report also highlighted that the number of doctors in the country is set to improve, aided by more than 100,000 undergraduate medical seats. This initiative may help to mitigate the disparity in healthcare professional availability between rural and urban areas.
“India's healthcare scene is undergoing rapid transformation. The government's dedication to enhancing healthcare spending, along with private sector involvement, is establishing a robust foundation for better healthcare accessibility and quality,” stated Krunal Modi, Director at CareEdge Ratings.
“The increase in medical seats, improved health insurance coverage, and ongoing growth of hospital beds are encouraging steps towards constructing a resilient healthcare system. Looking ahead, a collaborative approach involving both public and private efforts will be crucial for achieving our healthcare aspirations and ensuring improved health outcomes for all citizens,” he added.
