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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?

Primary healthcare~45%
Secondary & tertiary care~45%
Governance & administration~10%
Capital formationIncluded above

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.