1. Introduction to the Healthcare system
Conventionally India has been a rural, agricultural economy. Three fourth of the population lives in the rural areas. Healthcare is one of the largest service sectors of India. It can be seen as a glass, which is half empty or half full. The healthcare system of India faces significant challenges like the need to reduce the infant mortality rates, provide health insurance and creating awareness amongst the public. The private health care sector in India is very influential in both rural and urban India and has monopoly over curative services and over hospital care Post-independence India’s most noteworthy achievement in the public healthcare has been the decrease in mortality rates. In 1951 the life expectancy was 37 years, which increased to 65 years by 2011. In recent year’s the public spending on health increased nearly to 15% of the total health related costs. To summarize there has been a progress in the health status- especially in terms of life expectancy. The government spending on the healthcare in India is very small (0.9%) relative to the GDP whereas in developed companies like USA and Germany its 5 percent of GDP or more and for other Asian countries like china and South Korea its almost 3 percent. It makes it quite remarkable that India, which is seen as internationally as a economic powerhouse and as a success stories of economic growth in the past decade has health expenditure less than of 1 percent of the GDP. Health is a major subject of concern for the Indian government. The major spending comes from the private sector which accounts for more than 90% of the total expenditure on healthcare. The main motive of the paper is to understand the relationship between the expenditure on healthcare to the life expectancy. It would be interesting to compare it the developed economy like Germany and developing Asian economies like china and Korea.
b. Structure of Healthcare system
Indian health care system is very different from all the economies and while comparing it with Germany and Asian countries like China and Korea a clear understanding of the structure. It is very complex which can be understood from the figure 1:
Figure 1: India’s healthcare system is characterized by multiple systems of medicine, mixed ownership patterns and different kinds of delivery structures.
2. Literature review
WHO (World Health Organization) characterizes the poor healthcare state of India which is facing a “double burden” of diseases affecting both rich and poor classes of India. Life expectancy has gone up in India in last decade but it is still below the average global level. The health expenditure in Indian is very low only USDD 32 in comparison to developed companies, which is USD 4590. “Life expectancy and over health of Indians has been impressive notwithstanding high levels maternal and child mortality, high income disparities, and increasing infectious and non-communicable (heart...