NATHEALTH Urges Bold Reforms in Union Budget 2025-26 to Strengthen India's Healthcare System

NATHEALTH – Healthcare Federation of India – has outlined strategic recommendations for the Union Budget 2025-26, aimed at transforming India's healthcare landscape. The federation highlighted the critical need for substantial financial commitments to tackle the growing burden of diseases and systemic challenges, aligning with the nation’s long-term vision, Visit Bharat 2047.

In its recommendations, NATHEALTH emphasises the interdependence of health and economic prosperity, urging the government to allocate over 2.5per cent of GDP to healthcare. Key proposals include:

Lowering Cancer Care Costs: Removal of customs duties and a reduction of GST to 5 per cent on oncology equipment such as LINACs to enhance cancer treatment availability in underserved regions.

Redirecting Health CESS Revenues: Utilising CESS and the proposed 35per cent GST slab on tobacco and sugar products for public health programmes. A unified GST of 5per cent on healthcare goods and services is also recommended to ease input costs.

Hospital Vertical Expansion: Nationwide approval for hospital heights of up to 60 metres, coupled with funding for fire safety compliance in high-rise facilities.

Strengthening Infrastructure: Increasing hospital capacity by 2.5–3.0 million beds through Viability Gap Funding and low-interest capital investments, enabling smaller healthcare providers to participate.

Viable Insurance Rates: Revising reimbursement rates under CGHS, PMJAY, and ECHS schemes based on the Consumer Price Index, addressing decade-long stagnation.

Medical Education Expansion: Increasing MBBS and postgraduate medical seats via government investment, alternative financing, and fee adjustments in private DNB programmes to fund growth.

Digital Health Advancement: Launching a decade-long digital health incentive plan to bolster the Ayushman Bharat Digital Mission (ABDM), enhance data security, and upskill technical resources.

Positioning India as a Global Healthcare Hub: Establishing a dedicated fund to promote medical tourism and critical health services, advancing India's global healthcare standing.

R&D in Med-Tech: Introducing funding mechanisms to foster innovation in the Med-tech sector and transitioning to value-based care through standardised procurement norms.

 Abhay Soi, President of NATHEALTH and Chairman & Managing Director of Max Healthcare Institute Limited, stressed the importance of these reforms. “India’s healthcare sector is at a defining moment, presenting unique challenges and transformative opportunities. The Union Budget provides an unparalleled chance to address critical issues like the shortage of medical specialists, high cancer care costs, and inadequate hospital infrastructure. By embracing these reforms, we can create a resilient, equitable, and innovative healthcare system that secures India’s position as a global leader in healthcare,” he said.

NATHEALTH’s recommendations aim to bridge systemic gaps, promote innovation, and create a future-ready healthcare ecosystem, ensuring equitable access to high-quality care by 2047.