GS Paper 2 15 marks · 250w 14 min Medium
In a crucial domain like the public healthcare system the Indian State should play a vital role to contain the adverse impact of marketisation of the system. Suggest some measures through which the State can enhance the reach of public healthcare at the grassroots level.
Subtopic: Social Justice · public healthcare and marketisation
How to structure your answer
Introduction (why an active State in health) → market failures in healthcare → strengthen comprehensive primary care → human resources and essential drugs → raise public financing and regulate the private sector → digital and community-led reach → Conclusion (UHC at the grassroots)
Written within the word limit
205 words · target 250 words · 14 min
Healthcare is a classic case of market failure: information asymmetry, high out-of-pocket costs (still nearly half of total health spending) and supplier-induced demand push the poor into distress. Unchecked marketisation concentrates services in cities and profitable specialities, weakening equity and universal access. Hence the State must remain the guarantor of health as a public good.
Why market alone fails
- Private care clusters in urban, tertiary segments, bypassing villages and preventive care.
- Catastrophic out-of-pocket spending pushes families below the poverty line each year.
Measures to enhance grassroots reach
- Universalise comprehensive primary care through Ayushman Arogya Mandirs (Health and Wellness Centres) covering NCDs, maternal and mental health.
- Fix the human-resource gap: mid-level providers, incentivised rural postings, and strong ASHA and ANM cadres.
- Ensure free essential drugs and diagnostics, expanding Jan Aushadhi Kendras.
- Raise public health spending toward the 2.5% of GDP target of the National Health Policy 2017.
- Regulate the private sector via the Clinical Establishments Act, standard treatment guidelines and price caps.
- Leverage the Ayushman Bharat Digital Mission for teleconsultation and portable records; strengthen local governance and social audit.
The Tamil Nadu and Kerala models show that a well-financed, regulated public system delivers equity. An enabling, accountable State-led architecture is the surest route to universal health coverage at the grassroots.
What an examiner expects to see
- Healthcare exhibits market failure (information asymmetry, supplier-induced demand), justifying a strong State role.
- High out-of-pocket expenditure and catastrophic health spending drive impoverishment, especially for the poor.
- Comprehensive primary care via Ayushman Arogya Mandirs/HWCs is the core of grassroots reach.
- Bridging rural human-resource shortfalls through ASHA/ANM cadres and incentivised postings is essential.
- Free essential drugs and diagnostics plus Jan Aushadhi reduce cost barriers.
- Public health spending must rise toward the National Health Policy 2017 goal of 2.5% of GDP.
- Regulation of the private sector (Clinical Establishments Act, price caps, standard guidelines) curbs marketisation harms.
- Digital health (ABDM) and local governance/social audit extend last-mile accountability.
Concrete cases, schemes and judgments
- Ayushman Bharat PM-JAY and Ayushman Arogya Mandirs (Health and Wellness Centres)
- Pradhan Mantri Bhartiya Janaushadhi Pariyojana (generic drug kendras)
- National Health Policy 2017 target of 2.5% of GDP public health spending
- Clinical Establishments (Registration and Regulation) Act, 2010
- Tamil Nadu Medical Services Corporation and Kerala public health model
- Ayushman Bharat Digital Mission for records and teleconsultation
Terminology to weave into the answer
out-of-pocket expenditureuniversal health coveragecomprehensive primary healthcaremarket failureAyushman Arogya Mandirhealth financing