In this infographic we look at the healthcare budget allocation in the world’s most populous country, India.

Since 2014-15, India’s public healthcare expenditure has increased. However, only about 1.2% of GDP is allocated to healthcare, underscoring the need for a more robust funding strategy. 

India has historically had high out-of-pocket expenditure (OOPE) on healthcare. While OOPE has been declining over the years, the majority of the population still pays for healthcare out of their own pockets.

Additionally, there has been an increase in private health insurance expenditures as a percentage of total health expenditure (THE). A recent LSE blog highlights a correlation between the adoption of private insurance in wealthier states and the decline in OOPE. 

Analysts warn that as wealthier sections increasingly use public health facilities and private insurance, poorer sections may continue to face rising out-of-pocket healthcare costs, worsening health inequities in the country.