1. Introduction to the health system. OverviewConventionally, India is a rural and agricultural economy. Three quarters of the population live in rural areas. Healthcare is one of India's largest service sectors. It can be seen as a glass half empty or half full. India's healthcare system faces significant challenges such as the need to reduce infant mortality rates, provide health insurance and raise public awareness. The private healthcare sector in India is very influential in both rural and urban India and holds a monopoly on curative services and hospital care. After independence, India's most notable achievement in public health care was the decline in mortality rates. In 1951, life expectancy was 37 years, but it increased to 65 years in 2011. In recent years, public health spending has increased by almost 15% of total health-related costs. In summary, there has been progress in health status, particularly in terms of life expectancy. Public health expenditure in India is very low (0.9%) relative to GDP, while in developed countries like the United States and Germany it is 5% or more of GDP and in others Asian countries such as China and South Korea, they represent almost 3%. It is quite remarkable that India, which is considered internationally as an economic powerhouse and a success story of economic growth over the last decade, has health expenditure of less than 1 percent of the GDP. Health is a major concern for the Indian government. The majority of spending comes from the private sector, which accounts for more than 90% of total health spending. The main motive of the article is to understand the relationship between......the middle of the article......ope, United States. Economic times, p. 21. Dubos, R. (1968). Man, Medicine and the Environment, Harmondsworth, Pelican. Duggal, R. (February 15, 2007).• Changing health budgets. The Indian Economy Review, N. Delhi: Publishers Roller act Press services, (4), 35-46.• Jampani, S. (June 2006). Innovation in Indian Healthcare Services Sector – Case Study. Journal of Services Marketing, 4(2), 60-62• Parsad, P. B. (1992, September). Marketing of Health Services in Maternity Care - A Managerial Approach, PhD Thesis, Venkateshwara University, Tirupati, 1-5, 12,13, 41, 42.• Phillips, R.D. & Verhasselt, Y. (1994). Introduction: Health and Development, Health and Development, London: Routledge Publishers.• Prakash, G. & Singh A. (June 2007). Outsourcing of health services in Rajasthan: an exploratory study. IIBM Management Review, 19(2), 158,159,168.