Urgent Call for Increased Healthcare Expenditure in India

Former Reserve Bank governor, C Rangarajan, emphasized the urgent need for India to raise its healthcare expenditure from less than 2% to at least 2.8% of GDP. Speaking at the IFHE, he highlighted the importance of efficient fund utilisation and called for establishing more free-service hospitals.

India's healthcare spending, currently less than 2% of GDP, needs urgent augmentation, according to former Reserve Bank governor C Rangarajan. Addressing the ICFAI Foundation for Higher Education, he emphasized enhancing fund efficiency before increasing the budgetary allocation.

Rangarajan noted India's ongoing discourse about raising healthcare expenditure to at least 2.8% of GDP, compared to the present 1.8 to 1.9%. He urged governments to prioritize the creation of hospitals providing free services and ensure efficient use of funds.

The former Chairman of the PM's Economic Advisory Council highlighted the disparity in social spending, favoring education over health in India. He suggested cross-subsidization as a model to build institutions serving diverse socio-economic groups. Rangarajan remarked on the high quality of medical services available in India, comparing them to those in developed nations.

(With inputs from agencies.)