If healthcare is so lucrative that global private equity firms are willing to write cheques of Rs 13,000–14,000 crore for a single mid-sized Indian hospital chain, why is the Indian government still reluctant to invest at scale?
Public health expenditure in India remains stubbornly low — around 1.4–1.8 per cent of GDP in recent National Health Accounts estimates, far short of the National Health Policy 2017 target of 2.5 per cent by 2025. The Centre’s own allocation hovers near 0.26–0.28 per cent of GDP.
States carry the bulk of the burden, yet the combined public effort has never matched the rhetoric of “health as a right.” Fiscal constraints, competing demands (defence, infrastructure, subsidies), and the political economy of short-term welfare schemes over long-term capacity building explain part of the story. The deeper issue is that governments prefer to underwrite demand (through insurance schemes like Ayushman Bharat) rather than own and operate supply at the scale private capital is now willing to fund.
Free Membership Required
You must be a Free member to access this content.
