Although India has increased public funding for healthcare, households continue to carry the largest share of costs. Recent National Health Accounts data for 2022–23 show that out-of-pocket spending still accounts for nearly half of current health expenditure, leaving many people without full financial protection during medical emergencies despite higher government and insurance contributions.
Total health expenditure reached Rs. 8,81,359 crore, or 3.37 percent of GDP and Rs. 6,373 per person. Current health expenditure, which covers day-to-day consumption of services, stood at Rs. 7,66,814 crore.
Government health expenditure, including capital outlays, amounted to Rs. 3,85,332 crore, equal to 1.48 percent of GDP. The Union government contributed about 36 percent while states provided over 63 percent.
Households accounted for 56.44 percent of current health expenditure, with out-of-pocket payments making up 49.90 percent of that total. Enterprises contributed 8.84 percent and NGOs added a smaller share. Social security schemes covered 11.25 percent and private insurance 10.66 percent.
Primary care received 46 percent of current spending, secondary care 34 percent and tertiary care 15 percent. Private hospitals took 30.83 percent of current expenditure while government facilities received 16.73 percent.
Preventive services received only 8.88 percent of current health expenditure. Curative care absorbed more than 56 percent and medicines over 29 percent. Government data indicate non-communicable diseases caused 60 percent of deaths between 2022 and 2024.
Officials noted that the government share of GDP rose from 1.15 percent in 2013–14 to 1.48 percent in 2022–23 and that out-of-pocket spending as a share of total health expenditure has declined. These levels remain below the World Health Organization target of 5 percent of GDP and India’s own National Health Policy goal of 2.5 percent.
