30 November 2025

Deliberations at Ahmedabad University Indicate India’s Health Economy Succeeds when it Improves People’s Health Rather than Expanding Activity Around Illness

India is becoming increasingly capable at treating disease, yet the number of people who need treatment continues to grow. Chronic and lifestyle-related illnesses are appearing in larger numbers and at earlier stages of life, even as hospitals, diagnostics, insurance and digital health systems expand. This widening gap between the growth of the health economy and the health of the population set the tone for the Ahmedabad Dialogue on The Business of Health, organised by Ahmedabad University’s Bagchi School of Public Health.

The discussions looked closely at how growth in the health economy should be understood. The size of the sector is one lens, but another is whether the population becomes healthier over time. Policy viewpoints from Dr Vinod Paul of NITI Aayog, insurance experiences shared by Dr Rashmi Nandargi of Bajaj General Insurance and perspectives on healthcare delivery from Dr Atul Mohan Kochhar of National Accreditation Board for Hospitals and Healthcare Providers (NABH) contributed to deep deliberations on this question. What emerged from this discussion moderated by Dr Niyati Parekh, Associate Vice Provost, and Professor at the School of Global Public Health at New York University, and Visiting Professor at Bagchi School of Public Health, India has the institutional strength and scientific capability to treat disease at scale, yet this does not translate into a reduction of chronic disease that are largely preventable through modification of lifestyle, environmental and commercial determinants.

A recurring theme was the structure of incentives within the system. Most financial activity begins only after illness has occurred. Hospitalisation triggers revenue. Insurance becomes relevant after health deterioration. Providers are remunerated most when procedures are complex. Prevention, in contrast, remains largely outside the core economic model. This is the result of how health systems have developed globally, and India now faces the implications as the burden of chronic disease expands.

Technology was examined through this same lens. Precision diagnostics and advanced care will continue to save lives, yet some of the most promising applications of technology lie earlier in the chain of care. Digital tools and artificial intelligence can support primary doctors, emergency responders and community health workers by providing better visibility of risk, disease prediction and earlier intervention. The shift in outcomes will come only when prevention works at a population scale.

Equity received close attention. Communities that experience disadvantage often face chronic disease earlier and with greater economic exposure. When preventive systems reach these populations in time, the gains are significant. Productive years are preserved, and the long-term social and economic cost of ill-health is reduced. Equity therefore becomes central to the sustainability of the health economy rather than an optional extension of it.

Designed as a top-tier thought leadership platform, the Ahmedabad Dialogue reflects Ahmedabad University’s liberal arts and interdisciplinary approach, where complex questions are examined from multiple perspectives rather than through a single disciplinary lens. Ahmedabad Dialogue aims to provide a setting for careful thinking on subjects that influence India’s future. The focus of this edition was on understanding how the country’s expanding health capacity can translate into healthier and longer lives.

Insights from the panel discussion and the six thematic roundtable deliberations will be consolidated and shared in the coming weeks to contribute to policy thinking across government, industry and the public health community. The aim is to support deeper reflection on how the growth of the health economy can advance the well-being of people in India.