The mixed economy of health care services in India has various dimensions like Allopathy, Ayurveda, Homoeopathy, Unani and Siddha are different systems of medicine available in the country. However, allopathy is the dominant system of medicine. Furthermore, healthcare system in India has grown over the years on account of an increase in demand for modern healthcare facilities, rise in awareness about diseases, health consciousness among people, increase in per capita income, changing lifestyle, transition in disease profile etc. However, the demand for healthcare services is led by households that have a spending capacity as the poor and vulnerable sections of society have restricted demand for such services. On the supply side, availability and advancement of modern healthcare facility has also contributed towards the betterment of healthcare services industry in India (CII, 2020). Regardless of this, the supply side constraint remains as public expenditure on healthcare is limited which in turn, provides an opportunity to private healthcare service providers. The government healthcare spending in India is only 1.04 percent of GDP. The government has decided to increase the spending on health care to 2-3 percent through the pronouncement of many policies such as National Health Policy 2002, National Health Policy 2015 and the National Rural Health Mission (NRHM). The result of such stagnation is felt at the failure of the health care delivery system to the people who need most and to expand the workforce in healthcare, even to train and retain the existing health care workforce. Today, India has all the resources to intervene and to provide better health care to those in greatest need, but the existing intervention and resources did not match the power of the health system to deliver in a better way and on an adequate scale.

Keywords: Health Care Services, Demand and Supply, Stagnation.

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