Considering ‘Health’ is a state subject in India, it is appropriate that the discourse on health with financial protection and allocation by states for health services becomes part of state level policy dialogue. Health planning units in India are at district level as is the case in most other countries as well. However, in most countries, the districts are at population of 50,000 to 300,000. Considering that an average district in India is around 20 Lakh (2 million) population, even district level planning may not be detailed enough and to ensure planning for every 200,000 to 300,000; the ‘sub-district level health planning’ should be considered in India. A beginning can be made by selected Indian states and with time, there would be need for 8,000 planning units, one for each block, rather than nearly 760 at district level at present. This could help in equitable planning and allocation of funds, HR and infrastructure.