India proposed doubling healthcare spending in an annual budget unveiled on Monday. The budget has lifted caps on foreigners investing in its vast insurance market to help revive an economy that suffered its deepest recorded slump as a result of the pandemic. Finance Minister Nirmala Sitharaman projected a fiscal deficit of 6.8 per cent of gross domestic product for 2021/22, higher than the 5.5 per cent. 

India will spend an estimated 2.23 lakh crore on public health expenditure for the financial year 2021-2022. This is an increase of 137 per cent against budgeted expenditure from the previous year. 

"Investment on health infrastructure in this budget has increased substantially... Three areas - preventive health, curative health and well-being to be strengthened (and)... budget outlay for health and well-being is ? 2,23 lakh crore in 2021-22 as against BE of ? 94,452 crore," Ms Sitharaman said, responding to calls from medical and financial experts. 

Last year India spent only an estimate 1.3 per cent of its GDP on health - the lowest of any major economy, according to news agency Reuters.

The major increase comes as it includes spending of 64,180 crore (over six years) under the Pradhan Mantri Aaatmanirbhar Swasthya scheme. This scheme aims to improve primary, secondary and tertiary healthcare in the country.

It also includes expenditure of  with further funds to be provided if required. Ms Sitharaman also said that two new vaccines would be launched.

The Finance Minister also said the National Centre of Disease Control would be strengthened with new branches and units. With this initiative the support for more than 17,000 rural and 11,000 urban health centres would be provided.