Why is India’s health budget failing its people?

Public health spending in India is still not adequate, as it is still under 2% of GDP, which is far from the target of 2.5%.

Aug 9, 2026 - 08:23
Why is India’s health budget failing its people?
Why is India’s health budget failing its people?

India has increased its public health budget by 10% to ₹1.06 lakh crore, but public health spending in India is still not adequate, as it is still under 2% of GDP, which is far from the target of 2.5%. This underfunding has also resulted in devastating outbreaks, with 35 cases of Chandipura virus recorded in Gujarat, resulting in the death of 22 minors, i.e approximately a 59% fatality rate, thus demonstrating the inefficiency of the health system.

Even though the authority is happy with 25 crore digital registrations, studies have shown that around 85.6% of patients choose to consult doctors face-to-face owing to the fear of breach of privacy and lack of digital literacy. While around 55 million people go into poverty every year due to medical costs, the disconnection between digital achievements and the disadvantaged reality on the ground continues.

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