Health Minister Ghulam Nabi Azad was reported saying that private sector's expansion would be of no use for the health indicators of the country. He stressed on the need for an increased allocation in the field.

He said, "Notwithstanding the tremendous contribution of the private sector in addressing the huge demand for services, the problems being faced in the health sector will not decrease with the further expansion of the private sector."

According to the minister private sector might have grown in the urban areas but its presence in rural areas is negligible. The areas that remain untouched by the private sector are the northern states, hilly states and northeastern states. There exists a wide supply gap and for accesing health services rural areas are forced to depend upon public facilities.

He stated, "It is estimated that 75 per cent of human resources, 68 per cent of hospitals, and 37 per cent of total bed capacity is in the private sector."

The poor and the lower middle class strata in India for protection against high cost of medical care need state intervention.

He said, "India is one of the five countries in the world, which has almost 80 per cent health spending incurred by households as compared to not more than 20 to 50 per cent in developed countries."