Healthcare industry federation NATHEALTH has urged the Central government to launch a 10-year digital health incentive plan to enable the adoption of Ayushman Bharat Digital Mission (ABDM) in the upcoming Union Budget 2025-26.

The federation said the government push will help create digital health infrastructure, enhance data security, implement electronic health record (EHR) systems, upskill technical resources and foster collaboration between industry, academia, and start-ups to drive digital innovation.

NATHEALTH also called for a dedicated fund for targeted investments in critical and holistic health services to position India as a leader in high-quality healthcare and medical tourism. Another fund to support R&D and reward med-tech innovation in India was also proposed.

The federation wanted the government to help add 2.5–3 million hospital beds nationwide. Viability Gap Funding (VGF) and long-term and low-interest capital investments can foster participation from mid-sized and smaller healthcare providers, it said.

Stressing the need to expand medical education, the federation wanted increase in MBBS and postgraduate medical seats through government-led investment, supported by alternative financing mechanisms such as loans and interest subventions. Increasing tuition fees for private DNB programmes by 75%-100% to fund capacity expansion was suggested.

"India’s healthcare sector is at a defining crossroads, presenting both complex challenges and transformative opportunities. The upcoming Union Budget offers an unprecedented chance to address systemic gaps such as the acute shortage of medical specialists, escalating cancer care costs, and inadequate hospital infrastructure to meet the demands of a growing population”, Abhay Soi, President, NATHEALTH and Chairman & Managing Director, Max Healthcare Institute Limited, said. "By implementing strategic reforms, we can pave the way for a robust, equitable, and innovative healthcare system. Expanding hospital capacity, viable reimbursement frameworks, reducing treatment costs, and advancing medical education will not only address current challenges but also secure India’s position as a global healthcare leader. These efforts will ensure a healthier and more sustainable future for all”, he added.

The federation has also suggested a slew of measures the government and the GST council could take to reduce health care costs and redirect public health revenues. It called for removal of customs duties and reduction of GST to 5% on oncology radiation equipment, such as LINACs, to expand cancer treatment capacity in underserved regions. Similarly, it wanted the government to allocate proceeds from healthcare CESS and the proposed 35% GST slab on tobacco and sugar products to strengthen public health programmes. A unified 5% GST on all healthcare goods and services to reduce input costs was also proposed.