Introduction
In 2018, the Government of India launched the ‘Ayushman Bharat’ scheme (as outlined by the National Health Policy 2017) to make healthcare services more accessible and affordable to citizens and aid the country in achieving its target of universal health coverage (UHC) by 2030.
The following are the two key components of ‘Ayushman Bharat’:
- Establish Health and Wellness Centres (HWCs): Launched in February 2018, the scheme aimed to provide extensive healthcare services to citizens closer to their homes by establishing 1,50,000 Health and Wellness Centres (HWCs).
- Pradhan Mantri Jan Arogya Yojana (PM-JAY): Launched in September 2018, the scheme aimed to offer secondary and tertiary care services to the vulnerable population in the society. The policy aimed to offer medical coverage of Rs. 5 lakh (US$ 6.63 thousand) per family per year for secondary and tertiary care hospitalisation to over 10.74 crore poor and vulnerable families (i.e., ~50 crore beneficiaries), which constitute the bottom 40% of India’s population.
The government’s increased focus to invest in the country’s healthcare infrastructure and establish India as a global healthcare hub will further expand accessibility of healthcare services to the Indian population and strengthen the overall healthcare system. The Indian healthcare sector reached US$ 180 billion in 2023 and it expected to reach US$ 320 billion by 2028.
The government expenditure on healthcare increased to Rs. 1,06,530 crore (US$ 11.84 billion) in the Union Budget 2026-27 from Rs. 96,854 crore (US$ 11.01 billion) in the Revised Estimates (RE) of FY26, reflecting a 10% increase. Of the total allocation, the Department of Health and Family Welfare received Rs. 1,01,709 crore (US$ 11.30 billion), while the Department of Health Research was allocated Rs. 4,821 crore (US$ 535.67 million). Public spending on healthcare stands at 1.8% of GDP, while out-of-pocket expenditure accounts for 39% of total health expenditure.
In September 2024, the Union Cabinet approved health coverage for all individuals aged 70 years and above, irrespective of income, under the flagship Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY). The scheme offers annual health coverage of Rs. 5 lakh (US$ 5,985) per family to 12 crore vulnerable families and, since October 2024, has extended benefits to 6 crore senior citizens through the Vay Vandana Card. This initiative aims to support around 4.5 crore families, covering six crore senior citizens, by ensuring comprehensive health insurance protection.
Union Minister of Health and Family Welfare & Chemicals and Fertilizers, Mr. Jagat Prakash Nadda, shared that 8.19 crore people have benefited from treatment under the Ayushman Bharat scheme, with the government incurring a total expenditure of Rs. 1,26,000 lakh crore (US$ 14.71 billion). He highlighted that 19 lakh of these beneficiaries were underprivileged individuals who couldn’t have accessed healthcare without the scheme. He also mentioned that the scheme has significantly reduced out-of-pocket healthcare expenses, bringing it down from 62% to 38%.
The Ayushman Bharat Digital Mission (ABDM) is building a unified digital health infrastructure through electronic health records and the Ayushman Bharat Health Account (ABHA) to ensure continuity of care.
Need for Ayushman Bharat
The National Health Policy 2017 indicated the need to increase public healthcare spending in India due to rising demand for healthcare infrastructure & services and out-of-pocket expenditure.
Further, as per Health financing profile 2017 by World Health Organisation, the healthcare out-of-pocket expenditure (OOPE) in India was estimated at ~67.78% of the total health expenditure, higher than the world average of 18.2%, indicating high expenditure which leads to the high incidence of catastrophic expenditures and inequality.
To improve the public’s access to health services and meet the rising demand for healthcare infrastructure & services, the government introduced the ‘Ayushman Bharat’ scheme in September 2018. Following its launch, ~17 crore (68%) families have been estimated to be covered under PMJAY and other government-funded health schemes (e.g., Rashtriya Swasthya Bima Yojana, (RSBY), RSBY Plus, stated-owned schemes).
Ayushman Bharat: Key Initiatives and Progress
With the launch of Ayushman Bharat, India has reached a significant milestone in the pursuit for universal healthcare, as the scheme is ensuring extended services to all citizens through its twin pillars of Health & Wellness Centres (HWCs) and Pradhan Mantri Jan Arogya Yojana (PM-JAY) with bidirectional relations.
Health and Wellness Centres (HWCs)
As of May 14, 2026, there are 1,85,940 active Ayushman Arogya Mandirs (Health & Wellness Centres) in India, providing comprehensive primary health care.
Pradhan Mantri Jan Arogya Yojana (PM-JAY)
Under the Ayushman Bharat’s Pradhan Mantri Jan Arogya Yojana (PM-JAY), overall, 36,081 hospitals are empanelled.
|
Progress of PM-JAY |
|
|
Ayushman cards created |
43.98 crore (As of 14th May 2026) |
|
Authorised Hospital Admissions (Count) |
10.71 crore (As of 14th May 2026) |
According to Ayushman Bharat’s Pradhan Mantri Jan Arogya Yojana (PM-JAY) newsletter, 36,081 hospitals were empanelled overall.
Private sector partnership
- In March 2021, the National Health Authority (NHA), the apex government body responsible for implementing Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, collaborated with UTI Infrastructure Technology and Services Limited (UTIITSL) to provide free PVC Ayushman Bharat card to PM-JAY beneficiaries in 11 states and union territories.
- In February 2021, ~10,000 private hospitals were empanelled under Ayushman Bharat PM-JAY, >600 hospitals under the Central Government Health Scheme (CGHS) and other private hospitals, under the State Government Health Insurance Scheme, participated as COVID-19 vaccination centres in India to ramp up COVID-19 vaccination capacity.
- In December 2020, the Asian Development Bank (ADB) approved a US$ 300 million loan to help India's urban areas strengthen and expand access to comprehensive primary healthcare and contribute to the Ayushman Bharat scheme.
- In April 2020, the NHA announced to provide complimentary COVID-19 testing and care at private laboratories and empanelled hospitals under Ayushman Bharat schemes for beneficiaries.
- To strengthen supply of care & treatment under the PM-JAY scheme, the NHA, in April 2020, initiated express empanelment for private hospitals to provide care for severe illnesses such as cancer and heart conditions.
- In 2020, the NHA joined forces with SAS (a software company) to facilitate the National Anti-Fraud Unit (NAFU) to help monitor fraud and abuse occurring anywhere in the scheme's implementation structure by using data analytics.
- In 2019, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) collaborated with players such as Ola and Uber to enable comprehensive health insurance for their driver employees and their families to help them share benefits of this scheme and ensure their health and financial security.
- In 2019, the government partnered with Google to help speed up the digital exposure of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) by improving National Health Authority’s (NHA) digital presence and showcasing relevant content to 50 crore eligible beneficiaries.
- In 2019, Cipla collaborated with Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) to provide low-cost drugs to hospitals.
Other partnerships
The National Health Authority (NHA) collaborated with several other government, private and not-for-profit organisations to build expertise and skills to effectively implement the PM-JAY scheme.
|
Year |
Key partnerships |
Key capabilities |
|
2019 |
The German Government through GiZ |
The National Health Authority (NHA) partnered with the German Government through GiZ to develop capabilities in health benefit packages, support quality & policies, support state government; monitor and evaluate capacity building. |
|
2019 |
The World Bank |
The NHA partnered with the World Bank for capabilities in medical audits & claims adjudication, quality, capacity building, provider payment reforms & policy support, fraud management, monitor & evaluate health benefit packages, knowledge management and beneficiary empowerment. |
|
2019 |
Asian Development Bank |
The NHA partnered with Asian Development Bank for capabilities in capacity building, operations, policy support and research & information technology |
|
2018 |
The National Skill Development Corporation |
The NHA partnered with National Skill Development Corporation for skill development. |
|
2019 |
The Indian Council of Medical Research |
The NHA partnered with Indian Council of Medical Research for capabilities in quality, health benefit packages and research. |
|
2019 |
GeM (Government e-Marketplace) |
The NHA partnered with GeM for capabilities in health benefit packages and innovations in healthcare. |
Source: Annual Report PM-JAY 2020
Union Budget 2026-27 Highlights
- The allocation for Pradhan Mantri Jan Aarogya Yojana (PM-JAY) increased to Rs. 9,500 crore (US$ 1.06 billion) in the Union Budget 2026-27 from Rs. 9,000 crore (US$ 1.02 billion) in the Revised Estimates (RE) of FY26, reflecting continued focus on expanding affordable health insurance coverage and access to healthcare services.
- The allocation for the PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) increased sharply by 71.9% to Rs. 4,200 crore (US$ 466.67 million) in the Union Budget 2026-27 from Rs. 2,443 crore (US$ 277.64 million) in the Revised Estimates (RE) of FY26, indicating increased emphasis on strengthening public health infrastructure and healthcare preparedness across the country.
The Road Ahead
As part of its goal of achieving universal health coverage, India continues to strengthen healthcare access and public health infrastructure through initiatives such as Ayushman Bharat and PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM). In the Union Budget 2026-27, the government increased the allocation for Pradhan Mantri Jan Aarogya Yojana (PM-JAY) to Rs. 9,500 crore (US$ 1.06 billion), while PM-ABHIM received Rs. 4,200 crore (US$ 466.67 million), reflecting continued emphasis on expanding healthcare coverage and strengthening healthcare preparedness across the country.
The government expenditure on healthcare increased to Rs. 1,06,530 crore (US$ 11.84 billion) in the Union Budget 2026-27, reflecting a 10% increase over the Revised Estimates of FY26. The increased focus on healthcare infrastructure, digital health systems and insurance coverage is expected to improve accessibility, affordability and quality of healthcare services, particularly in rural and underserved regions.
Ayushman Bharat continues to play a key role in expanding access to affordable healthcare by providing cashless treatment facilities and strengthening Health and Wellness Centres (HWCs) across the country. The scheme’s portability feature has also improved healthcare accessibility for migrant workers and beneficiaries across states. With continued government support, increased allocations and stronger healthcare infrastructure development, the Ayushman Bharat initiative is expected to accelerate India’s progress towards universal and inclusive healthcare coverage.
