Affordable and good health care – wherever it comes from – should be the only guiding principle.
Thankfully, the National Health Policy (NHP) 2017 has been approved and uploaded. It will be useful to get some details of the Indian health system right before we assess the policy.
Health is a fundamental right (right to life) but health care is a directive principle of state policy.
Health care is a state subject and state governments are, therefore, responsible for administration and regulatory functions.
Medical education, drugs and disease control programmes are central subjects. The states also devolve care to local bodies. Many states have separate departments for medical education, health care and food and drugs regulation.
After the Second World War, many European Union and western nations built their health care systems either on the German sickness fund model or socialised medicine of the Soviet Union.
The Indian attempt (Bhore Commission 1943) for a full state-led-health care in India along the United Kingdom’s National Health Service (UK-NHS) model failed for lack of funds, requiring something like 6-8 per cent of gross domestic product (GDP).
Hence, India could develop only weak health facilities and made way for private urban health facilities that later spread in many rural areas.
Today, the private health sector has more than 60 per cent share of the health sector; part of this being non-profit facilities.
However, some states do not have a developed private health sector (the north-eastern states). Thus the national cast for a mixed sector was laid long back.
The current national health spend is about 4 per cent of GDP (OECD median spend is about 10 per cent of GDP), of which about 1 per cent is the share of the centre and states, while the remaining 3 per cent is out of pocket private expenditure.
The presence of private insurance (pre-paid, risk pooling) is hardly 3-10 per cent of this out of pocket expenditure, even in the better off states.
Hence, we have unexpected catastrophic out of pocket private expenditure that drives poor families into debt and distress.
The Indian health system is deeply divided along tribal-rural-urban lines.
The eastern, northern, north-eastern and central Indian states (except Jammu and Kashmir, Punjab, Delhi, West Bengal) have poorly developed public/private health systems, while the western and southern Indian states are better-equipped.
The Indian health care model is also divided by pathies. Ayurveda, Yoga, Unani, Siddha, Homeopathy (AYUSH) systems are stymied by the dominant modern medicine; the AYUSH sector gets a miniscule share of public or private funds.
The health system is a doctor-centric model. Other cadres are weak, underpaid, often untrained and doing paltry jobs.
The Medical Council of India (MCI, a regulatory body) and the Indian Medical Association (IMA, an association of doctors) dominate other pathies or paramedics. The emergence of super-specialties has further thickened the doctor-centric model. This has both cost and distribution implications.
India has a double burden – both infective diseases (like tuberculosis) and non-communicable diseases (diabetes, cancer and heart disease).
The increasing life expectancy brings complex and long drawn illnesses that entail skilled care, technology and costs. Most OECD countries are worried about this life-expectancy-led cost implications combined with dwindling working age group. The Indian health system also faces the problems of child and maternal mortality and malnutrition both in childhood and adult life.
A major problem is the declining quality and affordability of medical education and the paucity of trained nurses and paramedics.
Issues about AYUSH doctors using modern medicine, ubiquitous quacks (in the northern and north-eastern states) are neglected issues. The health system is layered as primary, secondary and tertiary (specialty) care, but the latter is dominating the private sector, entailing high cost and deprivations.
India is the global hub for low-cost pharmaceutical industry, but drug prices are still exploitative. The neglect of ‘health-determinants’ of water safety, sanitation and waste management, pollution, occupational hazards, tobacco and addictions continue to increase ill-health.
In short, affordable and quality health care for all is still a distant and elusive dream.
The NHP 2017 offers some tangible corrections for the situation outlined above, like
- raising the allocation for health to 2.5 per cent of GDP,
- improving hospital bed availability,
- reforms in medical and paramedic education,
- strategic purchasing of private care for poor families/underserved areas through public-private-partnerships (PPPs),
- management of determinants, control/elimination of communicable and non-communicable diseases.
- Addressing issues relating to mental health,
- tele-medicine,
- health information,
- medical research,
- control of quality and cost of drugs/implants and diagnostics,
- regulation of the health care sector,
- mainstreaming and enhancement of AYUSH,
- priority to good quality and accessible primary care (which gets two-thirds allocation of funds) more than secondary tertiary care are some inescapable features of any NHP.
- Strengthening public facilities and making them accountable for quality of care is another welcome declaration but is often wishful thinking.
However, NHP 2017 misses or errs on the following important issues:
- One, reliance on the tax-route alone to raise public allocation to 2.5 per cent of GDP from the current level of 1 per cent by 2025 is just postponing the problem.A 2 per cent allocation is required right now to fill empty posts (30 per cent to 60 per cent of posts of doctors are vacant) and ensure the payment of Seventh Central Pay Commission rates to the health-medical establishment.
- A better option would have been to harness middle class out of pocket private expenditure/private funds through social insurance mechanisms/state-funded health insurance schemes in place of family mediclaim policies or asking insurance companies to float affordable group insurance schemes.
- The political correctness of sticking to tax-funded single payer health care like the NHS (which is now nearly bankrupt) and timidity about user fees for paying classes will take us nowhere.
- This will not achieve universal health care, instead will burden the country with a bureaucratic, high-cost, top-down and inefficient system.
- In short, it is just doubling of the current health system with all its shortcomings.
The minimum commitment should be 6 per cent of GDP and that can come only with harnessing out of pocket private expenditure. Tax funded systems are too few in the world and barely afloat.
The social health insurance models, like in Thailand, South Korea and Singapore could have been helpful and also work like regulator of private sector to ensure value for out of pocket private expenditure.
- Two, the national medical commission that the NHP 2017 speaks of will bring more bureaucratic blocks, more centralisation of human resource policies due to national entrance (NEET) and exit tests.
- The MCI is malfunctioning and the government could have disciplined these elements in 2015. Instead, we are taking a wrong lane. Medical education cannot be reformed with PG NEET or exit tests. NHP 2017 misses this point completely.
- Third, NHP 2017 is mute on the rural doctors’ course, but talks of bridge courses and substitutes. Hence the human resource gaps may haunt us in most of northern and eastern India.
However, the redeeming feature of NHP 2017 is its resistance to making health care as a justiciable fundamental right.
Liberals have long argued about role of state in health care – how and how much.
A rights-based approach entails the state to provide all the way, which is detrimental to the state, the people and the health sector itself.
NHP 2017 takes a pragmatic middle way for essential primary care and averting catastrophic expenditures rather than force another conflict on ‘denial of rights’.
Leaving this single bright spot in NHP 2017, we think it is a missed opportunity.
Affordable and good health care – wherever it comes from – should be the only guiding principle. Let the choice remain with the people.
Recent Posts
- In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
- In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
- In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
- Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.
- In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
- In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.
- Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
- Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh
- Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
- Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers
- West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
- In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three
- Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
- In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam
In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).
States are classified into two categories – Large and Small – using population as the criteria.
In PAI 2021, PAC defined three significant pillars that embody Governance – Growth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.
The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.
At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.
This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance

The Equity Principle
The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.
This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.



Growth and its Discontents
Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.



The Pursuit Of Sustainability
The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.



The Curious Case Of The Delta
The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.
Key Findings:-
In the Scheme of Things
The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.
The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).
National Health Mission (NHM)
INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)
MID- DAY MEAL SCHEME (MDMS)
SAMAGRA SHIKSHA ABHIYAN (SMSA)
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)