India has achieved a high growth rate of economic development after implementing new economic reforms, but it is significantly less in the case of social development. Social development and economic development are both interlinked with each other. Health is an essential component of determining the social development of a country. World Health Organization (WHO) defines health as complete physical, mental and social well-being and not merely the absence of disease or infirmity. Hence good health leads to achieving economic development and eliminating many problems. At present, India has more than 140 crores of population. The WHO recommended doctor-population ratio is 1:1000, but in our country, one doctor is for 11,082 people. 55% of Physician posts are vacant in rural hospitals; India is far behind in the health indicators like IMR, MMR, life expectancy, beds available, etc., compared to the developed nations. Along with these, the covid-19 also exposed the myths about the health system in the country. The distribution of the budget to the health sector is meager. However, Healthcare Research and Development did not pay adequate attention. Recently the Central Government has prioritized the health and education sector through Aatma Nirbhar Bharath to achieve the country's social development. Hence this paper discusses the situation of the Indian healthcare system and its challenges. For the analysis, mainly secondary sources data is used, and the required data is collected from different health reports of the Union Ministry of Health and Family Welfare, the National Rural Health Mission, the Indian Economic survey, etc.