Praxis Global Alliance and NATHEALTH Launch India Health Financing Position Paper 2026 at NATHEALTH 12th Annual Arogya Bharat Summit

Praxis Global Alliance and NATHEALTH Launch India Health Financing Position Paper 2026 at NATHEALTH 12th Annual Arogya Bharat Summit

1.      Sector growth vs financing gap: India’s healthcare ecosystem is valued at ~US$300B in FY25 and projected to reach ~US$700B by 2030, but health financing remains underpenetrated.

2.      Global spending imbalance: India carries ~20% of the global disease burden but accounts for only ~1% of global health spending.

3.      High out-of-pocket burden: Out-of-pocket spending accounts for ~44% of health expenditure, among the highest globally.

4.      Insurance coverage gap: While ~60% of Indians are covered by some form of insurance, only ~20% is private insurance, with ~40% through government schemes.

5.      The “missing middle”: ~430M Indians remain outside effective coverage — too affluent for public schemes yet unable to afford private insurance.

New Delhi, 25^th March 2026 — Praxis Global Alliance, in collaboration with NATHEALTH, today released the India Health Financing Position Paper 2026 at the NATHEALTH Arogya Bharat Summit 2026. The report examines the evolving landscape of healthcare financing in India and outlines pathways to strengthen the financial architecture supporting the country’s healthcare system.

India’s healthcare ecosystem has expanded significantly over the past two decades, supported by growing infrastructure, stronger domestic manufacturing, and increased private sector participation. However, rising incomes, shifting disease patterns, and higher healthcare utilisation are creating new demands on the system. As India aspires to become one of the world’s largest economies, the healthcare sector must evolve in parallel not only in scale but also in the sophistication of its financing frameworks.

The report notes that while India’s healthcare sector could approach US$700 billion by 2030, the financing architecture supporting this growth remains fragmented and underpenetrated, with out-of-pocket spending still accounting for a large share of healthcare expenditure. Drawing on industry data, global benchmarks, and stakeholder consultations, the paper highlights both India’s strong healthcare foundations and the need to strengthen financing frameworks, insurance coverage, and infrastructure to support long-term system sustainability.

Key Highlights:

1.      Healthcare spend gap: India’s healthcare spend is US$135 per capita (2025) vs GDP per capita of US$2,700, and may need to reach ~US$300 per capita by 2030 as GDP approaches US$4,000.

2.      Capacity gap: India has 0.9 doctors, 1.8 nurses, and 1.6 beds per 1,000 people, requiring ~1M doctors, ~3.5M nurses, and ~1.45M additional beds by 2035.

3.      Rising NCD burden: Non-communicable diseases are growing at 2–9% CAGR, with onset 10–15 years earlier than global averages.

4.      Digital health scale: 853M+ ABHA IDs, 470K+ health facilities, and 830K+ professionals are registered under ABDM.

5.      Infrastructure funding need: India requires >$200B in healthcare providers investment by 2035, with healthcare generating 23–27 jobs per US$1M invested.

Speaking on the launch at NATHEALTH 12th Annual Arogya Bharat Summit 2026, Ameera Shah, President NATHEALTH and Promoter & Executive Chairperson, Metropolis Healthcare Ltd said  “Despite our progress, nearly 44% of health expenditure in India still comes directly from the patient's pocket, and over 400 million people, the 'Missing Middle'- remain without effective coverage. NATHEALTH's thought leadership report is a wake-up call to create more inclusive financing models. By expanding private insurance penetration and leveraging digital health infrastructure, we can reduce the financial shock of medical emergencies for millions of families. Our goal is to ensure that world-class diagnostics and treatment are not just available, but are also affordable and accessible to every segment of society”

Echoing similar views, Dr. Sangita Reddy, President Elect - NATHEALTH & Joint Managing Director -Apollo Hospitals added "India has already demonstrated a unique global advantage: the ability to deliver world-class clinical outcomes at nearly 1/5th of global costs. However, to sustain this 'Indian model' of high-value healthcare, we must evolve our financing architecture. The next phase of our growth depends on how effectively we expand insurance penetration and encourage innovative funding models that support preventive care. The NATHEALTH thought leadership report provides a practical roadmap to move from a fragmented system to an interoperable financing ecosystem, ensuring that India remains the world's most compelling destination for affordable, high-quality healthcare."

Adding to this, Aryaman Tandon, Managing Partner & Co-Founder at Praxis Global Alliance, said, "India stands at a defining moment in its healthcare journey. We have built a cost-competitive, technology-enabled, and clinically sophisticated delivery ecosystem but its potential is constrained by a financing architecture that remains fragmented, under-penetrated, and insufficiently aligned with outcomes. With ~430 million Indians uncovered / ineligible for public coverage and out-of-pocket expenditure at nearly half of all health spending, the human and economic cost of inaction is immense. This report lays out a sequenced, evidence-based reform agenda that can move India from a system built around sickness to one designed for wellness and from fragmented risk pools to a universal, interoperable financing ecosystem. The opportunity is significant: a US$ 700 billion healthcare market by 2030, generating millions of quality jobs, and positioning India as one of the world's most compelling healthcare destinations."

To download the full position paper, visit: www.praxisga.com/reports-and-publications

About Praxis Global Alliance

Praxis Global Alliance is the next-gen management consulting firm revolutionising how consulting projects are delivered. It delivers practical solutions to the toughest business problems by uniquely combining domain practitioner expertise, AI-led research approaches, and digital technologies. The company operates three business units, including Praxis Global Alliance Financial Investor Group (FIG), offering pre-deal support, commercial due diligence and post-acquisition value creation; Praxis Global Alliance Business Enablement and Transformation (BET) for practitioner-led business advisory and consulting; and PraxDigital™ delivering data engineering and analytics, AI, OpenData and visualization solutions to clients across verticals. Present in 4 locations in India, Praxis Global Alliance has successfully served 40+ countries with a team of over 200+ consultants and data scientists.

For more details, please visit: www.praxisga.com

For media queries, please contact:

Shivam Bajaj, Associate Manager – PR & Events, Praxis Global Alliance pr@praxisga.com |
+91 935 453 3135

About NATHEALTH:

NATHEALTH was created with the vision to “Be the credible and unified voice in improving access and quality of healthcare”. Leading healthcare service providers, medical technology providers (devices & equipment), diagnostic service providers, health insurance companies, health education institutions, healthcare publishers, and other stakeholders have come together to build it as a common platform to power the next wave of progress in Indian healthcare. NATHEALTH is an inclusive institution that has representation of small & medium hospitals and nursing homes. It is committed to working on its mission to encourage innovation, help bridge the skill and capacity gap, help shape policy & regulations, and enable the environment to fund long-term growth. NATHEALTH aims to help build a better and healthier future for both rural and urban India.

For more details, please visit: www.nathealth.co.in

For media queries to NATHEALTH, please connect with

Jyotsana Saluja, Marketing & Communications Specialist, NATHEALTH| +91886 058 3321