Where India’s health spending actually goes
Source: Ministry of Health & Family Welfare · Last updated July 2026
Govt health spend (% GDP)
1.84%
Out-of-pocket share
39.4%
India’s government health expenditure (GHE) stood at 1.84% of GDP in 2021-22, up from 1.13% in 2014-15, according to National Health Accounts estimates. Total health spending (including private) is around 3.8% of GDP. Out-of-pocket expenditure has declined but remains a major burden at 39.4% of total health spending.
Where does the money go?
Key health indicators
- Life expectancy: 72.7 years (2026)
- Infant mortality rate: 27 per 1,000 live births (declining from 39 a decade ago)
- Maternal mortality: 88 per 100,000 live births (down from 130 a decade ago)
📊 Key insight: The Union Health Budget for 2026-27 is ₹1.06 lakh crore, which is about 0.26% of GDP — well short of the National Health Policy target of 2.5% of GDP by 2025. Experts argue India needs to raise public health spending to at least 2.5-3% of GDP to reduce out-of-pocket costs.
Source
National Health Accounts (NHA) Estimates for India 2022-23, Ministry of Health and Family Welfare; Registrar General of India (SRS Bulletin); PIB. Figures reflect the most recent data available as of July 2026.