The rise and risks of health insurance in India !!
This article is very useful for UPSC aspirants because it covers topics from GS Paper II (Governance, Welfare Schemes, Health) and GS Paper III (Inclusive Growth, Health Infrastructure). Questions related to public health, health insurance, and government schemes often come in UPSC Prelims, Mains, and Essay papers. This article explains the rise and risks of health insurance in India in a detailed way, which is helpful for answer writing.
Summary :
India aims to achieve Universal Health Care (UHC), where everyone gets good quality health services without financial stress. In recent years, the government has promoted health insurance schemes to move towards this goal. The most popular one is PM-JAY (Pradhan Mantri Jan Arogya Yojana) launched in 2018, which provides ₹5 lakh cover for poor families. States also have their own State Health Insurance Programs (SHIPs). Together, these cover millions of families.
However, the article highlights that insurance alone cannot achieve UHC. There are several problems:
Over-focus on insurance – Only hospitalisation is covered, but primary healthcare remains weak, which is the backbone of a good health system.
More hospitalisation means more costs – Insurance encourages people to get admitted for even minor issues, increasing financial burden on public health.
Fraud and misuse – Fake hospital bills, unnecessary surgeries, and corruption are common in many schemes. Many people do not even know about the schemes, but private hospitals misuse them.
Out-of-pocket expenses still high – Even after insurance, people spend a lot on medicines and tests.
The article suggests that insurance should not replace public health services. Instead of spending huge money on insurance, the government should strengthen primary healthcare, regulate private hospitals, and improve transparency.
Health insurance is growing in India, but it is not the complete solution. A strong public health system, better regulation, and accountability are essential for real UHC.
(This summery is bassed on The Hindu Article for Learning purpose Only)
Here are UPSC-level questions based on the article:
✅ GS Paper II – Governance, Health & Social Justice
1. Direct Questions
“Health insurance is not a substitute for universal health care.” Discuss in the context of India. (250 words)
Critically examine the effectiveness of Pradhan Mantri Jan Arogya Yojana (PM-JAY) in achieving Universal Health Coverage in India.
The rapid expansion of state-sponsored health insurance schemes has both benefits and risks. Analyse.
✅ GS Paper III – Inclusive Growth, Health Infrastructure
Discuss the challenges posed by over-utilisation and fraud in health insurance schemes in India. How can these be addressed?
Evaluate the role of primary health care in reducing dependency on health insurance schemes for Universal Health Coverage.
✅ Essay Paper
“Health care should be a right, not a privilege. Is India moving in the right direction?”
“Insurance-driven health system vs public health-driven system – Which is sustainable for India?”
✅ Prelims/MCQ type
Which of the following are features of PM-JAY (Ayushman Bharat)?
(a) Provides ₹5 lakh health cover per household per year
(b) Covers secondary and tertiary hospitalization
(c) Available to all citizens of India
(d) Implemented by National Health Authority
Options:
(a) and (b) only
(a), (b) and (d)
(a) and (c) only
All of the above
Correct Answer: 2
Article 2 : Questionable cheer
The government might find it dificultto meet its fical deficit targets
India’s GDP growth for the first quarter of the current financial year stood at 7.8%, a positive surprise compared to the Reserve Bank of India’s (RBI) projection of 6.5% made just a month earlier. This higher-than-expected growth raises questions about the accuracy of earlier forecasts and requires introspection. A key highlight was the manufacturing sector’s growth of 7.7%, which is significant considering the high base of 7.6% in the same period last year. Some experts attribute this to companies ramping up production ahead of U.S. tariff deadlines, but given that merchandise exports rose only 1.6%, domestic demand seems to be the primary driver.
However, supporting data provides a mixed picture. The Index of Industrial Production (IIP) for manufacturing grew only 3.3% compared to 4.3% last year. Steel consumption, vehicle sales (private down 5.4%, commercial down 0.6%), and rail freight growth (2.5% vs 5% last year) all slowed significantly. Two-wheeler sales fell by 6.2%, and three-wheeler sales were almost flat. This indicates a slowdown in core and consumer sectors, making the manufacturing growth figure puzzling and in need of deeper analysis.
The services sector performed strongly, reaffirming its critical role in the Indian economy. The government has retained its overall growth forecast of 6.3%-6.8% for the full year, implying a likely slowdown in the remaining quarters despite limited impact from U.S. tariffs. Another concern arises from the statistical framework: nominal GDP growth was 8.8%, which assumes inflation of only 1%, an unlikely figure. This discrepancy questions data accuracy.
A lower nominal growth rate will also make it harder to meet fiscal deficit targets, especially with expected revenue losses due to upcoming GST cuts. In conclusion, while Q1 GDP numbers bring optimism, they also raise critical questions on sustainability, data robustness, and fiscal challenges ahead.
Question Model :
✅ GS Paper III – Indian Economy
Mains Questions (250 words)
“India’s GDP growth of 7.8% in Q1 is encouraging, but underlying data raises concerns.” Discuss.
Examine the reasons for the higher-than-expected GDP growth in Q1 FY2025. How sustainable is this growth?
Critically analyze the role of the manufacturing and services sector in driving India’s recent GDP growth.
What challenges do discrepancies in nominal and real GDP data pose for economic policy-making in India?
✅ GS Paper II – Governance & Policy
How do inaccuracies in growth projections and inflation data affect fiscal policy and budgetary planning?
✅ Essay Topics
“High growth numbers do not always mean a strong economy – Analyze in the Indian context.”
“Data integrity is the foundation of economic governance.”
✅ Prelims MCQs
Q1. With reference to GDP growth in India for Q1 FY2025, consider the following statements:
RBI had projected GDP growth of 7.8% for Q1.
The manufacturing sector grew at 7.7% in Q1 FY2025.
Services sector performance was strong in Q1.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All of the above
Answer: (b)
Q2. Which of the following can increase nominal GDP without affecting real GDP?
(a) Increase in production
(b) Increase in prices
(c) Decrease in prices
(d) Increase in both production and prices
Answer: (b)
