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    ISAS Working Papers

    Long-term studies on trends and issues in South Asia

    03 : Leading the Private Sector into the Indian Health Sector

    Maathai K. Mathiyazhagan

    31 August 2005

    The health sector in India is at the crossroads today. In line with economic progress and liberalisation, Indian states are pushing for reforms in the healthcare sector. The private health sector’s market size in India is enormous. It contributes to almost 4.2 percent of GDP of India’s total health expenditure (5.1 percent of GDP). In 2001, the ratio of hospital beds to population was 7 beds per 1,000 people. The public hospitals contributed 4 beds per 1,000 people. The ratio of physician to patients is 1:1,000 and every auxiliary nurse midwife has to serve around 4,707 people in the rural areas in India. Further, Indians travel on the average of seven kilometres for the physical accessibility of a primary health centre.