The healthcare industry is looking for a stronger push towards infrastructure, preventive care and easier access to medical services, with industry body NATHEALTH – Healthcare Federation of India calling for greater investment in the sector.
Among its key proposals is the creation of a ₹50,000 crore Healthcare Infrastructure Fund to support long-term investment in healthcare facilities and improve access to medical services, particularly beyond the major metropolitan centers.
The proposal comes at a time when India’s healthcare system continues to face gaps in infrastructure and human resources. Parliamentary research on the 2026-27 health budget has also highlighted shortages in primary healthcare infrastructure and manpower.
Focus on Healthcare Infrastructure
NATHEALTH has consistently pushed for expanding healthcare capacity across Tier-II, Tier-III and Tier-IV cities, where access to specialized medical facilities can be more limited.
According to the organization, improving infrastructure in these regions can help reduce pressure on larger hospitals and bring more healthcare services closer to patients. Its current strategic priorities include infrastructure expansion, new models of care, digital health and stronger public-private partnerships.
The proposed infrastructure fund is aimed at supporting the financing needs of healthcare projects and encouraging further capacity creation across the country.
Push for Preventive Healthcare
Another important part of the healthcare industry’s Budget expectations is a greater focus on preventive health.
NATHEALTH has called for tax-related measures that could encourage people to undergo regular health check-ups. The broader objective is to promote early detection of diseases rather than waiting until a health condition requires more intensive treatment.
At present, the Income Tax Department’s guidance under Section 80D includes a deduction for preventive health check-ups, with the check-up component subject to an overall limit of ₹5,000 within the applicable deduction framework.
The industry is seeking further support for preventive healthcare through tax incentives and other policy measures.
Why Healthcare Infrastructure Matters
India’s healthcare demand has grown rapidly, but access to quality medical facilities remains uneven across regions. Smaller cities and towns, in particular, need greater investment in hospitals, diagnostic facilities, specialized care and healthcare technology.
A stronger financing mechanism could help healthcare providers expand capacity in areas where setting up new facilities can be financially challenging.
NATHEALTH’s own policy priorities include expanding affordable healthcare in Tier-II to Tier-IV locations and exploring technology-enabled and partnership-based models of healthcare delivery.
Healthcare Spending Remains a Key Issue
Healthcare financing continues to be an important policy discussion in India. According to a 2026 analysis by PRS Legislative Research, public spending on health was around 1.8% of GDP, while out-of-pocket expenditure accounted for about 39% of total health expenditure based on the latest figures cited in its analysis.
Industry representatives have therefore been seeking measures that can increase investment, improve healthcare capacity and reduce the financial burden on patients.
What the Proposal Could Mean
If such measures are considered by policymakers, the focus would be on strengthening healthcare infrastructure, improving access outside major cities and encouraging people to pay greater attention to preventive health.
However, the ₹50,000 crore figure is an industry proposal and should not be confused with a government-approved fund. Any decision regarding the creation, size or structure of such a fund would depend on government policy and budgetary decisions.
For citizens, the broader message from the healthcare industry’s Budget proposals is a push towards making healthcare more accessible while giving greater importance to prevention and early diagnosis.
Key Highlights
- Organisation: NATHEALTH – Healthcare Federation of India
- Proposal: ₹50,000 crore Healthcare Infrastructure Fund
- Main focus: Healthcare infrastructure and capacity expansion
- Priority areas: Tier-II, Tier-III and Tier-IV cities
- Additional demand: Greater tax support for preventive health check-ups
- Broader focus: Preventive care, digital health and public-private partnerships
- Status: Industry proposal; not a confirmed government allocation
As India continues to expand its healthcare infrastructure, the coming policy decisions will be closely watched by hospitals, healthcare providers and patients alike.
