The 21st century has ushered in unprecedented challenges and transformations in healthcare and development, particularly within India and other developing nations. The connections between health economics and development remains crucial for shaping sustainable policies.

The most important worldwide challenges are health system, mental health crisis, substance abuse, malnutrition and food security, sexual and reproductive health challenges, environmental pollution, climate crisis, cancer and diabetes. At least 50% of the world population doesn't have access to essential health services. According to the National Health Accounts (NHA), India's total health expenditure as a percentage of GDP stood at 3.8%, with out-of-pocket expenditure still constituting a high 39.4% of the total health expenditure.

Moreover, health financing mechanisms remain a pressing concern, around 60% of the population are not covered under any form of health insurance. Given the disparities in healthcare access and economic constraints, the application of health economics to development policies has become a pressing need, especially for the developing countries. Addressing these concerns requires rigorous policy discussions, interdisciplinary collaborations, and evidence-based strategies that can bridge gaps in healthcare delivery and financial sustainability.