K. SEETA PRABHU' World Development Report 1993: Structural Adjustment and the Health Sector in India There has been considerable interest the world over on issues pertaining to health. This is partly an outcome of the health sector reforms that have been actively debated in the United States. A reflection of the concern being expressed is found in the World Development Report 1993 ^ which is devoted to issues pertaining to investment in health. In the case of India, a country report entitled India: Health Sector Financing-Coping with Adjustment: Opportunities for Reform (Washington, 1993)was also prepared.2 The recommeitdations of both these reports have far-reaching implications for the Indian health sector. This paper seeks to highlight some of these issues against the background of the following: a) The characteristics of health financing in India; b) The structural adjustment programme currently being implemented in the country. The paper is arranged into five sections for analytical convenience. The next section outlines briefly the chief characteristics of health financing in India whereas the third section presents an analysis of the impact of structural adjustment on the Union government's health expenditures. The fourth section examines health sector financing at the level of the states. The last section sums up the main conclusions of the paper and discusses its implications. Discussion of the World Bank reports and the recommendations contained therein need to be viewed in the context of the following Department of Economics, Bombay University. Social Scientist, Vol. 22, Nos. 9-12, September-December 1994