World Bank to lend $1 billion to support India’s health sector

Source: The post is based on the article “World Bank to lend $1 billion to support India’s health sector” published in The Hindu on 4th March 2023.

What is the News?

The World Bank is lending up to $1 billion to help India with preparedness for future pandemics as well as to strengthen its health infrastructure.

Note: India’s performance in health has improved over time. According to the World Bank estimates, India’s life expectancy has increased from 58 in 1990 to 69.8 in 2020. This is higher than average for the country’s income level.

How will the World Bank lend India to strengthen its health infrastructure?

The lending will be divided into two complementary loans of $500 million each:

The first $500-million Public Health Systems for Pandemic Preparedness Program (PHSPP) will support the government’s efforts to prepare India’s surveillance system to detect and report epidemics of potential international concern.

Another $500 million Enhanced Health Service Delivery Program(EHSDP) will support the government’s efforts to strengthen service delivery through a redesigned primary healthcare model, which includes: 1) Improved household access to primary healthcare facilities, 2) Stronger links between each household and its primary care facility through regular household visits, and 3) Risk assessment of non-communicable diseases.

Both the PHSPP and the EHSDP utilize the Program-for-Results financing instrument that focuses on the achievement of results rather than inputs.

Duration of loan: The loans will have a final maturity of 18.5 years including a grace period of five years.

Which programmes will be supported through this lending?

The lending will support India’s flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission(PM­ABHIM), launched in October 2021, to improve the public healthcare infrastructure across the country. In addition to this, loans will also prioritize health service delivery in seven States.