Budget: Nathealth asks for ₹50k cr infra fund, tax SOPs for health checkups

Innovation fund for deep tech collabs, setting up of labs and 100% deduction on capex under section 35 AD of IT Act among key demands

Healthcare industry body Nathealth has asked the government to declare the sector as core infrastructure and create a healthcare infra fund of ₹50,000 crore for providing long-term, lower-cost capital for hospitals and diagnostic networks.

 

It said the fund would aim to cater new projects that have long gestational periods requiring flexible mid-term financing.

 

In its pre-budget recommendations to the government, Nathealth has also asked for increasing the public spending on healthcare to over 2.5 per cent of GDP from the current 1.9 per cent, along with taking urgent action to tackle non-communicable diseases.

 

With chronic diseases contributing to 65 per cent of all deaths in India and a low uptake of preventive screening, Nathealth recommended a tax deduction for preventive health check-ups of up to ₹10,000.

 

“This increases preventive care uptake, early detection of NCDs, and expected long-term reduction in treatment costs and productivity losses,” the body added.

 

It has also asked the government to set up a national network of accredited reference laboratories with an outlay of ₹1,000 crore. It has also asked for creation of national infrastructure for ethical animal testing and pre-clinical validation of medtech innovations. 

 

Among other demands, Nathealth also mooted setting up of an innovation fund for deeptech and provider collaboration with an outlay of ₹5,000 crore to ₹7,000 crore, stating that there is a fragmented innovation ecosystem with limited provider-startup collaboration.

 

“There is a need for pilots, AI research, and scale-up funding, which accelerates commercialisation of high-impact solutions,” it said.

 

Similarly, diagnostic labs have asked to be accommodated under Section 35AD of the Income Tax Act, which provides for a 100 per cent deduction on capital expenditure incurred in specific high-priority businesses, such as cold chain facilities, hospitals, and affordable housing projects.

 

The industry reasoned that capital-intensive diagnostic equipment faces slower asset turn and limited tax incentives relative to hospitals.

 

“This step would allow full capital expenditure deduction or accelerated depreciation for diagnostic labs and high-end equipment to lower entry costs and spur rural and urban expansion,” Nathealth added.

 

Commenting on the recommendations, Nathealth President Ameera Shah said fiscal foresight and innovation-led reforms will be essential to create a self- reliant, high-quality ecosystem that expands access and sustains long-term growth.

 

“By placing healthcare investment at the heart of economic planning, India can ensure progress that is both inclusive and future-ready,” she added.