The World Bank has sanctioned a $1 billion loan to India to enhance its healthcare infrastructure and prepare for future pandemics. The fund will be divided into two segments of $500 million each.
Channelization of the World Bank Loan
The World Bank loans aim to bolster India’s premier healthcare initiative – the Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), unveiled in October 2021. The scheme’s primary objective is to improve public health facilities across the nation.
Interestingly, both segments of the loan employ a “Program-for-Results” financing mechanism focusing on generating quantifiable results as opposed to merely inputting resources. The credit comes with an 18.5-year term, which includes a grace period of five years.
Breakdown of the Loan Allocation
$500 million from the loan, administered under the Public Health Systems for Pandemic Preparedness Program (PHSPP), will be allocated to augment India’s surveillance system for detecting and reporting potential international epidemics.
Further, another $500 million under the Enhanced Health Service Delivery Program (EHSDP) will support the government’s efforts to strengthen service delivery through a meticulously redesigned primary healthcare model. This segment of the loan aims to improve health service delivery in seven states: Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh.
A Look at India’s Health Sector
Based on World Bank estimates, India’s health sector has progressively improved over the years. Life expectancy in India has grown from 58 in 1990 to 70.19 in 2022. Rates concerning under-five mortality, infant mortality, and maternal mortality closely align with averages for nations with comparable income levels.
Challenges Facing India’s Health Sector
Despite the improvements, India’s health sector continues to grapple with several challenges. Key inadequacies include a lack of sufficient medical infrastructure and an alarming gap in the doctor-patient ratio.
India is grappling with a paucity of hospitals, particularly in rural areas. Many existing health facilities lack basic amenities and resources. As per the National Health Profile, India has only 0.9 beds per thousand population, with a mere 30% located in rural settings.
Furthermore, India has a severe shortage of doctors relative to its population. As reported by the Indian Journal of Public Health, India needs two million doctors by 2030. Currently, a single government hospital doctor treats approximately 11,000 patients, significantly more than the World Health Organization’s recommended ratio of 1:1000.
Additionally, mental healthcare in India is insufficient, with a relatively low per capita number of mental healthcare professionals and low government expenditure on mental health services.
Recent Government Initiatives in Healthcare
To confront these challenges, the Indian government has implemented various healthcare initiatives such as the National Health Mission, Ayushman Bharat, Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), and the National Medical Commission.
Lastly, on the topic of the ‘National Nutrition Mission’, it aims to raise awareness regarding malnutrition among pregnant women and lactating mothers, lower anaemia incidence among young children, adolescent girls, and women, and promote consumption of coarse cereals, millets, and unpolished rice. It also encourages increased intake of poultry eggs.