Azad said that private and public sector need to have a symbiotic relationship to provide affordable healthcare. 'The host and the parasite must reciprocate.'

Unfolding his reform agenda further, the minister said that the United Progressive Alliance (UPA) government will change the rule in setting up medical colleges in cities too.

'Why only rural areas, let me talk about our big cities. We now have plans to allow the private sector to go vertical instead of horizontal in starting medical colleges in big cities,' Azad said.

'Earlier, there was a requirement of 24 acres of land to set up a medical colleges in big cities like Chennai, Delhi, Mumbai and Kolkata. Very soon, we are allowing them to start medical colleges on just 10 acres of land,' the minister said, noting this decision will solve the land problems which are 'huge issues' in big cities.

Welcoming the announcement to involve the private sector, Fortis Healthcare chief Shivinder Mohan Singh said: 'It is like music to the ears of the private sector.'

Anjan Bose, a senior administrator with Philips' medical manufacturing unit, said: 'The minister's announcement is encouraging.'

Azad, said his government is trying to increase the healthcare expenditure. 'We have increased the healthcare expenditure to 1.4 percent of the GDP in 2008-09 as against a dismal 0.97 percent in 1999-2000.'