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India's healthcare system has been facing numerous challenges, including a lack of access to quality healthcare for millions of people, high out-of-pocket expenses, and inadequate health insurance coverage. Launched in 2018, Ayushman Bharat is a government-funded health insurance scheme aimed at providing financial protection to vulnerable populations, including those living below the poverty line. The scheme covers more than 10 crore families, making it the world's largest health insurance program.

Improved Access to Healthcare

Ayushman Bharat has played a significant role in improving access to healthcare services for millions of people in India. The scheme provides coverage for secondary and tertiary care hospitalization, including surgeries, therapies, and medications. As of January 2022, over 3 crore hospital admissions worth Rs. 60,000 crore have been authorized under Ayushman Bharat, benefiting millions of people across the country.

Increased Demand for Medicines

The increased access to healthcare services has led to a rise in demand for medicines. According to a report by the National Health Authority, the medicines prescribed under Ayushman Bharat accounted for around 1.5% of India's total pharmaceutical sales in 2019-20. This translates to a market size of around Rs. 7,500 crore, with the potential to grow even further in the coming years.

Encouraging Local Manufacturing

Ayushman Bharat has also encouraged local manufacturing of medicines in India. The scheme mandates that drugs used in the treatment of patients covered under Ayushman Bharat must be purchased from manufacturers who have been pre-qualified by the government. This has provided an opportunity for local manufacturers to improve the quality of their medicines and make them more affordable, as they compete for a share of the market.

Opportunities for Innovation

Ayushman Bharat has opened up opportunities for innovation in the pharmaceutical industry. As the demand for healthcare services continues to rise, the need for new and innovative medicines and treatments will also increase. This presents an opportunity for the Indian pharmaceutical industry to develop new products that cater to the specific healthcare needs of the country.

Challenges and Solutions

While Ayushman Bharat has been successful in improving healthcare access for millions of people, there are also challenges that need to be addressed. One of the major challenges is the shortage of healthcare professionals, including doctors, nurses, and pharmacists. According to a report by the National Health Authority, there is a shortage of over 6 lakh doctors and 20 lakh nurses in India. This shortage of skilled professionals can limit the effectiveness of Ayushman Bharat in providing quality healthcare services.

To address this talent gap, the Indian government has launched various initiatives, including the National Health Stack, which aims to create a digital infrastructure for the healthcare sector, and the National Medical Commission Act, which seeks to improve the quality of medical education in the country. Additionally, the government has also launched various skill development programs to train and upskill healthcare professionals.


Ayushman Bharat has been a game-changer for India's healthcare sector, providing increased access to healthcare services and creating new opportunities for the pharmaceutical industry to grow and innovate. The scheme has helped to improve the quality of healthcare services and make them more affordable for millions of Indians. As the scheme continues to expand, it is likely that the demand for medicines and healthcare services will increase, providing a further boost to the pharmaceutical industry. However, addressing the talent gap in the healthcare sector is crucial to ensuring that Ayushman Bharat can achieve its full potential in improving healthcare outcomes for millions of people across India.
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