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India’s 134th rank in the Human Development Index (HDI) 2023 underscores significant challenges in healthcare and education, despite sustained government efforts. Limited public spending, inadequate infrastructure, and disparities in access continue to weaken India’s human capital potential. A comprehensive approach is needed to address these structural gaps and ensure inclusive, high-quality education and healthcare for long-term national development.

India’s Position in Global Health and Education Rankings Remains Low Despite Government Initiatives

Challenges in India’s Health infrastructure

• Low Public Health Expenditure: As per Latest  World Bank data on the world development indicators India’s public health spending (3.3% of GDP) is lower than BRICS nations, affecting healthcare access and quality.
• High Out-of-Pocket Expenditure: As per National Health Accounts Estimates 2021-22, the Out-of-Pocket Expenditure (OOPE) as a percentage of Total Health Expenditure (THE) is 39.4%
  For example: WHO reports India’s out-of-pocket health spending as one of the highest globally, causing poverty for millions.
• Poor Healthcare Infrastructure: Rural areas suffer from shortages of hospitals, doctors, and medical equipment, impacting service delivery.
  For example: India has only 1 doctor per 834 people, which still has scope of improvement.

Challenges in Indian Education Sector

• Low Government Education Spending: India’s education spending (4.6% of GDP) is lower than peers, affecting learning outcomes.
  For example: Among BRICS nations, South Africa invested 6.1% of their GDP in the education sector, leading to better global rankings in literacy and innovation.
• Poor Learning Outcomes: Surveys show low numeracy and literacy rates, even at primary levels, hindering skill development.
  For example: ASER 2023 found 25% rural kids aged 14-18 can’t read Std 2 level in their own tongue.
• Limited Higher Education Quality: Only a few Indian institutions rank globally, with a stark disparity between top and second-tier colleges.
  For example: QS World University Rankings 2025 lists only IIT Bombay and IIT Delhi in the top 150, while China has multiple universities in the top 50.

Structural Weaknesses in India’s Human Capital Development

• Inefficient Public School System: Government schools lack infrastructure, trained teachers, and digital access, leading to a preference for private schools.
• Limited Vocational Training: Skill development starts late, with few vocational courses integrated into the school curriculum.
  For example: Around 5% of India’s workforce is formally skilled, compared to 75% in Germany (ILO report). 
• Inadequate Healthcare Workforce: Doctor and nurse shortages persist, impacting quality healthcare delivery, especially in rural areas.
  For example: India has only 1.7 nurses per 1,000 people, below the WHO-recommended 3:1000 ratio.
• Weak Centre-State Coordination: Healthcare and education policies suffer due to gaps in implementation and funding between Centre and States.
  For example: Many health schemes like Ayushman Bharat face uneven implementation, reducing nationwide impact.
  

Long-Term Reforms for Improving Quality and Accessibility in Education and Healthcare

• Increase Public Investment: Raise education and health spending to at least 6% and 4% of GDP, respectively, for better infrastructure and services
• Strengthen Digital Learning: Expand AI-driven and e-learning platforms to bridge rural-urban education gaps.
• Universal Health Coverage (UHC): Implement a nationalized primary healthcare model to reduce out-of-pocket expenses.
• Integrate Vocational Training in Schools: Introduce early-age skill development aligned with industry needs.
  For example: Germany’s dual vocational education system ensures 90% employability after schooling.
• Incentivize State Reforms: Link central funds to performance in education and healthcare to encourage reforms.
  For example: Performance-linked grants in NITI Aayog’s health index helped improve state-wise healthcare services.

“Healthy minds, healthy nation” should be India’s guiding mantra. Strengthening public investment, fostering PPP models, and leveraging technology-driven solutions can bridge gaps in education and healthcare. A rights-based approach, integrated with skilled workforce development and universal coverage, will ensure equity and excellence. A reformed governance mechanism can transform human capital into India’s greatest asset.

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