An Association between Health and Economic Growth in India

Abstract

The broad objective of this study is to understand the effect of economic growth on health; to find the impact of per capita net state domestic product (PCNSDP) on health indicators via infant mortality rate (IMR), under five mortality rate (UFMR) and immunization (IMM). This study is in four periods (1992-93, 1998-99, 2005-06 and 2010-11) and 25 states of India. The data has been used from different sources.  In this study it is observed that GDP has increased since 1992-93 and in the period 1997-98 to 2005-06 there was a high rate of increase in it. Immunization has not increased fast in all the periods, also IMR and UFMR have decreased slowly over time.  The results by the elasticity   show that the effect of female literacy on health (via IMR, UFMR and Immunization) is much important than income. There must be many other relevant factors that influence on health. It can be concluded that the role of female literacy is without doubt more important on the health system than economic growth. However, to have more sustained health quality, we need to focus on the broader aspects of development and not just economic growth. The study shows that literacy and educational attainments play a significant role in improving the health in different states in India therefore, they should be improved; especially among the states which are educationally backward and awareness about health and well-being living is very low. Some factors like income and health inequalities are needed to explore more in the states to identify the best strategies and practices to promote economic development, poverty reduction and a healthy society in India.