TL;DR: India’s total health expenditure nearly doubled from ₹4.5 lakh crore in 2013–14 to ₹8.8 lakh crore in 2022–23. Government spending’s share rose from 28.6% to 43.7% as a percentage of the Health Expenditure, while out-of-pocket expenditure (OOPE) fell from 64.2% to 43.4%. Private health insurance nearly tripled its share from 3.4% to 9.2%, and hospitals now account for almost half of current health expenditure, underscoring a gradual shift towards institutional and pooled healthcare financing.

Context

India’s National Health Accounts (NHA) have evolved into one of the country’s most important instruments for understanding how healthcare is financed, delivered, and consumed. Produced in accordance with India’s National Health Accounts Guidelines and the internationally recognised System of Health Accounts 2011 (SHA 2011), the estimates track not only how much is spent on health, but also where funds originate, who manages them, which providers receive them, and what services they ultimately support.

Beyond measuring expenditure, the NHA offers a valuable lens into the evolving priorities and structure of India’s health sector. In this article, we examine the key findings, trends, and statistics from the latest National Health Accounts Estimates 2022–23, and what they reveal about the trajectory of healthcare financing in India.

Who compiles this data?

The National Health Accounts (NHA) Estimates are compiled under the Ministry of Health and Family Welfare, with the National Health Systems Resource Centre (NHSRC) serving as the National Health Accounts Technical Secretariat (NHATS) since 2014. Drawing on data from government departments, surveys, insurance schemes, and private healthcare providers, the estimates provide a comprehensive account of health spending across India.

Where can I download clean & structured data related to this?

Clean, standardised, structured, and ready-to-use datasets on Health Account Estimates are available on Dataful.

Key Insights

Total Health Expenditure nears ₹9 Lakh Crore

India’s total health expenditure (THE) reached ₹8.81 lakh crore in 2022–23, almost double the ₹4.53 lakh crore recorded a decade earlier. The increase reflects the growing scale of healthcare financing in the country, driven by rising spending across both public and private sectors.

Most of this expenditure continues to be directed towards current healthcare needs. Current Health Expenditure (CHE), which covers spending on healthcare services, medicines, diagnostics, and preventive care, stood at ₹7.67 lakh crore in 2022–23. Capital expenditure, which includes investments in infrastructure, hospitals, and medical equipment, accounted for ₹1.15 lakh crore.

However, while absolute spending has risen substantially, health expenditure’s share of the economy has remained relatively stable. Total health expenditure stood at 3.3% of GDP in 2022–23, broadly consistent with levels seen over much of the past decade. The trend suggests that healthcare spending has largely expanded alongside economic growth rather than outpacing it.

Private Hospitals capture the largest share of current healthcare spending

The expenditure data of 2022-23 reveal a healthcare system still dominated by private service delivery. Private hospitals absorbed ₹2.36 lakh crore, or 30.8% of current health expenditure, making them the single largest recipient of healthcare spending in India. Government hospitals accounted for ₹1.28 lakh crore, or 16.7% of current expenditure. Outside hospitals, pharmacies accounted for another ₹1.63 lakh crore, representing 21.2% of current health expenditure.

A decade ago, pharmacies accounted for the largest share of India’s Current Health Expenditure, absorbing more than a third of all spending. That picture has changed. By 2022–23, the share of expenditure flowing to pharmacies had fallen from 36% to 21%, while hospitals—both public and private—claimed an increasingly larger portion of healthcare resources.

Private hospitals emerged as the single largest recipient of current health spending, with their share rising from 21% in 2013–14 to 31% in 2022–23. Government hospitals also expanded their share, growing from 11% to 17% over the same period. Together, hospitals accounted for nearly half of all current health expenditure.

Expenditure on Private Health Insurance almost Tripled in a decade

One of the quieter but significant developments in India’s health financing landscape has been the steady rise of private health insurance. In 2013–14, private health insurance expenditures accounted for just 3.4% of Total Health Expenditure (THE). By 2022–23, its share had nearly tripled to 9.2%.

The growth has been gradual but consistent, with the share of health expenditure financed through private insurance increasing almost every year over the past decade. This expansion reflects the growing penetration of health insurance products among households and employers, as well as a broader shift towards risk pooling in healthcare financing.

At the same time, Out-of-Pocket Expenditure (OOPE) as a share of THE has declined markedly, falling from 64.2% in 2013–14 to 43.4% in 2022–23. Although households continue to shoulder a substantial portion of healthcare costs, the decline suggests a gradual reduction in financial vulnerability associated with medical spending. Viewed together, the rise of insurance and the fall in out-of-pocket payments signal a slow but meaningful transition towards more pooled and pre-paid forms of healthcare financing in India.

Why does it matter?

Health financing is ultimately a measure of who bears the cost of staying healthy. The latest National Health Accounts estimates suggest that India’s healthcare system is gradually becoming less reliant on direct household spending and more dependent on pooled financing mechanisms such as government spending and insurance. This matters because high out-of-pocket expenditure can push families into financial distress, particularly during major illnesses. At the same time, the growing role of hospitals and insurance reflects changing patterns of healthcare access and utilisation. Together, these trends offer important clues about the direction of health-sector reforms, the effectiveness of financial protection measures, and the evolving relationship between citizens, the state, and healthcare providers.

Key Numbers

• Total Health Expenditure (in Rs. Lakh Crore)

  2013-14: 4.53; 2017-18: 5.67; 2021-22: 9.04; 2022-23: 8.81

• Distribution of Current Health Expenditures according to Healthcare Providers (in%)

  • Govt. Hospitals: 2013-14: 10.8; 2017-18: 17; 2021-22: 19; 2022-23: 16.7

  • Private Hospitals: 2013-14: 21.2; 2017-18: 29.2; 2021-22: 27; 2022-23: 30.8

  • Pharmacies: 2013-14: 35.7; 2017-18: 23.2; 2021-22: 19.4; 2022-23: 21.2

• Key health financing indicators for India across NHA rounds

  • Out-of-Pocket-Expenditures as % of the Total Health Expenditures(THE)

    • 2013-14: 64.2; 2017-18: 48.8; 2021-22: 39.4; 2022-23: 43.4

  • Private Health Insurance Expenditures as % of THE

    • 2013-14: 3.4; 2017-18: 5.8; 2021-22: 7.4; 2022-23: 9.2