Ayushman Bharat the flagship scheme of government will to help to increase penetration in health insurance sector to a level of about 45% which is currently 28-30%. This will result in an overall healthy population and will have a positive effect on productivity and the economy.
The health insurance infrastructure in India is not very good. Ayushman Bharat will create this ecosystem in rural India. Moreover, the cost of treatment will get standardised. As the ecosystem will get developed, chances are that private health insurers will be able to go and sell retail health insurance in these markets, at a price which could be much cheaper.