State-wise Healthcare Spending in India for 2025

India allocates billions to ensure the health of its 1.4 billion citizens, and by 2025, health spending in the country reaches unprecedented levels.

The overall health budget, which encompasses government, private, and out-of-pocket expenditures, rises to approximately $11.82 billion (985 billion INR), with health expenditure as a percentage of GDP in India for 2025 estimated at around 2.6%.

Tables below provide a detailed breakdown of this spending across all 28 states and 8 union territories, illustrating the total health expenditure in India for 2025 in billion USD and as a percentage of each state’s budget.

The data highlights significant disparities—some states invest heavily in healthcare, while others struggle to meet basic needs.

State-wise Health expenditure in Billion USD

Rank	State/Union Territory	Health Expenditure (Billion USD)
1	Uttar Pradesh	12.84*
2	Maharashtra	11.23*
3	Tamil Nadu	6.84*
4	Karnataka	6.22*
5	Andhra Pradesh	5.99*
6	West Bengal	5.76*
7	Gujarat	5.30*
8	Rajasthan	4.92*
9	Madhya Pradesh	4.66*
10	Bihar	4.39*
11	Telangana	4.13*
12	Kerala	3.88*
13	Odisha	3.36*
14	Punjab	3.24*
15	Haryana	3.12*
16	Delhi	2.28*
17	Chhattisgarh	2.16*
18	Jharkhand	2.04*
19	Assam	1.92*
20	Uttarakhand	1.20*
21	Himachal Pradesh	0.84*
22	Jammu and Kashmir	0.60*
23	Tripura	0.36*
24	Meghalaya	0.24*
25	Manipur	0.22*
26	Nagaland	0.20*
27	Arunachal Pradesh	0.18*
28	Mizoram	0.18*
29	Sikkim	0.16*
30	Goa	0.14*
31	Puducherry	0.12*
32	Chandigarh	0.10*
33	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	0.08*
34	Andaman and Nicobar Islands	0.06*
35	Ladakh	0.05*
36	Lakshadweep	0.03*

The initial table presents health expenditure in India for 2025 in billion USD, encompassing all sources of funding.

Uttar Pradesh ranks first with $12.84 billion, followed by Maharashtra at $11.23 billion, Tamil Nadu at $6.84 billion, Karnataka at $6.22 billion, and Andhra Pradesh at $5.99 billion.

In contrast, smaller regions such as Lakshadweep ($0.03 billion), Ladakh ($0.05 billion), and the Andaman and Nicobar Islands ($0.06 billion) have the lowest expenditures.

Uttar Pradesh leads the expenditure chart due to its vast population of 240 million, which necessitates substantial healthcare resources. The state invests in hospitals and clinics to serve its extensive rural areas.

Maharashtra’s $11.23 billion expenditure reflects its economic strength, with private hospitals in Mumbai and public initiatives like Ayushman Bharat contributing to the costs.

Southern states, including Tamil Nadu and Karnataka, also spend significantly due to robust health programs and urban private healthcare, with cities like Chennai and Bangalore hosting expensive specialty hospitals.

What accounts for the lower spending in smaller regions? Lakshadweep, with a population of just 64,000, requires fewer hospitals, so its $0.03 billion is sufficient for basic clinics.

Ladakh’s challenging geography restricts its spending to $0.05 billion, as constructing facilities in such areas incurs higher costs per capita.

These regions depend on central government support, which increases at a slow pace.

Percentage share of Health expenditure in overall state budget

Rank	State/Union Territory	Health Expenditure (% of State Budget)
1	Rajasthan	7.5*
2	Andhra Pradesh	7.0*
3	Kerala	6.8*
4	Tamil Nadu	6.5*
5	Telangana	6.5*
6	Chhattisgarh	6.2*
7	Odisha	6.2*
8	Delhi	6.0*
9	Gujarat	6.0*
10	Karnataka	6.0*
11	Assam	5.8*
12	Himachal Pradesh	5.8*
13	West Bengal	5.8*
14	Haryana	5.5*
15	Maharashtra	5.5*
16	Punjab	5.5*
17	Jharkhand	5.2*
18	Madhya Pradesh	5.2*
19	Uttar Pradesh	5.2*
20	Bihar	5.0*
21	Tripura	5.0*
22	Uttarakhand	5.0*
23	Sikkim	4.8*
24	Arunachal Pradesh	4.5*
25	Manipur	4.5*
26	Meghalaya	4.5*
27	Mizoram	4.5*
28	Nagaland	4.5*
29	Puducherry	4.5*
30	Andaman and Nicobar Islands	4.0*
31	Chandigarh	4.0*
32	Goa	4.0*
33	Jammu and Kashmir	4.0*
34	DNHDD (Dadra and Nagar Haveli and Daman and Diu)	3.5*
35	Ladakh	3.5*
36	Lakshadweep	3.5*

The second table illustrates health expenditure as a proportion of each state’s overall budget. Rajasthan tops the list with 7.5%, followed by Andhra Pradesh at 7.0%, Kerala at 6.8%, and both Tamil Nadu and Telangana at 6.5%.

The national average hovers around 5%, while Lakshadweep, Ladakh, and Dadra and Nagar Haveli and Daman and Diu lag behind at 3.5%.

Rajasthan’s notable 7.5% is attributed to its emphasis on initiatives like Ayushman Bharat, which provides free hospital care for millions.

Andhra Pradesh’s 7.0% is a result of its Aarogyasri program, which funds surgeries for low-income families.

Kerala’s 6.8% is the outcome of years of prioritizing health, ensuring well-funded hospitals are available in every district.

Tamil Nadu and Telangana enhance their budgets to support both rural clinics and urban medical facilities.

Smaller regions fall behind due to their limited budgets, where health spending competes with other essential needs such as road infrastructure.

Lakshadweep’s 3.5% allocation addresses basic healthcare for a small population, while Ladakh’s challenging terrain diverts funds towards infrastructure development.

Jammu and Kashmir’s 4.0% is adversely affected by security expenses that detract from health funding.

Why some states have low healthcare budget compared to others?

Several elements account for the inconsistent health spending in India:

Population Size: Uttar Pradesh’s $12.84 billion expenditure is indicative of its large population, which necessitates more healthcare facilities and medical professionals.

In contrast, smaller states such as Sikkim ($0.16 billion) allocate less funding due to a lower demand for healthcare services.

Economic Strength: The $11.23 billion spent by Maharashtra is a result of its robust GDP, which supports both private healthcare institutions and public health initiatives.

Conversely, Bihar’s expenditure of $4.39 billion is constrained by poverty, leading to a heavy reliance on out-of-pocket expenses, which constitute 47% of total health spending (Statista 2023).

Government Priorities: Rajasthan allocates 7.5% of its budget to health, reflecting a strong commitment to healthcare, with initiatives like PM-JAY benefiting 88% of households.

In comparison, Uttar Pradesh’s 5.2% allocation is spread across various sectors, including education and infrastructure, which limits the funds available for health.

Urban vs. Rural Disparity: Urban regions such as Delhi ($2.28 billion, 6.0%) invest more in sophisticated healthcare facilities.

In contrast, rural areas like Assam (5.8%) prioritize basic healthcare services, resulting in moderate spending percentages.

Healthcare Requirements: Southern states like Kerala (6.8%) invest significantly to achieve low infant mortality rates (6 per 1,000) and high life expectancy (78.26 years).

Meanwhile, northeastern states like Nagaland (4.5%) have fewer healthcare facilities, leading to lower spending at $0.20 billion.

Progress and Obstacles

India’s health expenditure as a percentage of GDP is projected to reach 2.6% by 2025, an improvement from 1.8% in 2020, largely due to the Ayushman Bharat initiative, which provides coverage for 15 crore families with up to $5 lakh annually for hospital services.

States contribute 60% of public health financing, with national expenditure totaling 985 billion INR ($11.82 billion).

Southern states like Andhra Pradesh exemplify how state-level programs can enhance healthcare coverage.

However, significant challenges persist. Out-of-pocket expenses account for 47% of health spending, disproportionately affecting poorer states like Bihar.

Additionally, remote regions such as Lakshadweep face financial constraints ($0.03 billion) and a scarcity of hospitals, necessitating travel for medical care.

Source

• Ministry of Health and Family Welfare, Government of India. (2021). National Family Health Survey (NFHS-5) 2019-21: India report. International Institute for Population Sciences (IIPS).