A fearsome health calamity- the novel coronavirus of 2019 struck the world and created havoc with its rapid spread. Various countries got affected in terms of economic and other losses and the extent of impact depended on the pre-existing financial arrangement of the country and various other factors. Due to this outbreak, healthcare sector was one of the worst affected. Also, it needed most investment and had to respond quickly and effectively to manage this crisis. Among the countries affected, India- a financial centre with significant worldwide connectivity was impacted directly, leading to an imminent breakdown of economical markets. This paper tries to understand the different aspects of economic challenges faced by the Indian healthcare system and devise the possible measures to overcome the effect of COVID-19 pandemic in India. It analyses the short term and possible long-term impact of this pandemic on the health care sector of India in terms of efficiency and equity. The Indian Government had acted rapidly to allocate funds, resources and manpower. It announced relief packages for the marginalized communities and covered costs. Specific research centres in the country need to work to quickly mitigate any further damage.

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