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Policy Change

The health industry has emerged as one of the most challenging sectors as well as one of the largest service sector industries in India with an estimated revenue of UA$35 billion; it  constitutes 5.2% of India’s GDP and employs 4 million people. The Indian health industry is expected to grow at 15% per annum to US$78.6, reaching 6.1% of GDP and employing 9 million people by 2012.

Recognizing the significant potential and challenges in the health sector, the government has prioritized it in the Eleventh Five Year Plan. The private sector plays a significant role by contributing 4.3% of GDP and 80% share of healthcare provision. However, deficiencies persist with respect to access, affordability, efficiency, quality and effectiveness, despite the high level of overall private and public expenditure on health.

In order to be comparable with the healthcare parameters of other developing countries, India’s healthcare sector faces many challenges. For example, to reach a ratio of two beds per 1000 population  by 2025, an additional 177 billion beds will be required which willl need a total investment of US$86 billion. There is an acute shortage of doctors, nurses, technicians and healthcare administrators and an additional 0.7 million doctors are needed to reach a doctor population ratio of 1:1000 by 2025. Although the health insurance sector is projected to grow to US$3.8 billion in collected premiums by 2012 from the annual collected premium of US$711 million in 2006, there is a dismal health insurance penetration rate; at present only 2% of the total population is insured.

For the desired changes and a healthy growth of the healthcare sector, a well-defined partnership between the government and the private sector is essential.


The Health Services Committee has been pivotal in facilitating interaction among stakeholders to jointly work towards Health Services reforms and provision of ‘Quality Healthcare to All’, a fundamental right of each Indian citizen. In view of the inadequate healthcare infrastructure, human resource, regulations and quality, the Committee has submitted recommendations to the Government from time to time.


  • Provide recommendations for policy change and regulatory reforms
  • Promote and disseminate information on Quality Assurance Mechanism
  • Facilitate streamlining of sectoral issues amongst stakeholders
  • Develop white papers on relevant issues with stakeholder consultation
  • Provide Networking and collaboration Platform


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