India Strengthens Position as Global Medical Tourism Hub

India has emerged as a preferred destination for medical value travel (MVT), offering world-class healthcare at affordable costs. With cutting-edge medical technology, skilled professionals, and a seamless integration of modern medicine with traditional healing practices like Ayurveda and Yoga, the country continues to attract a growing number of international patients. The recent Union Budget’s emphasis on expanding medical tourism under the ‘Heal in India’ programme, along with simplified visa norms, is expected to provide further momentum to this sector.

Currently valued at approximately Rs 1 lakh crore in 2024, India’s medical tourism sector is projected to grow at a compound annual growth rate (CAGR) of 17.2% and surpass Rs 4.3 lakh crore by 2034. The country is already competing with top medical tourism destinations like Thailand, Singapore, Brazil, and Turkey. It ranked 10th in the Medical Tourism Index (MTI) for 2020-21 among 46 global destinations, according to the Medical Tourism Association.

A key factor driving India’s appeal is cost-effectiveness. Medical procedures in India are significantly cheaper than in Western nations, offering savings of 60-90% on treatments such as cosmetic surgeries, fertility procedures, cardiology, and oncology. Additionally, affordable accommodation, lower medication costs - thanks to India’s role as a major producer of generic drugs - and favorable exchange rates make treatment in India financially viable for international patients. Major patient inflows are recorded from the United States, United Kingdom, Bangladesh, the Middle East, Africa, CIS countries, SAARC nations, Southeast Asia, and the Pacific Rim.

With approximately 7.3 million medical tourists visiting India annually, the ‘Heal in India’ initiative aims to streamline patient services, reinforce trust in Indian healthcare facilities, and further establish India as a global leader in medical tourism. The growing influx of international patients is also boosting foreign direct investment (FDI) in the healthcare sector. Increased FDI enhances service quality, drives technology adoption, and strengthens India’s ability to compete globally. The rising demand for advanced hospitals, specialized healthcare services, and telemedicine platforms has encouraged global healthcare providers and investors to invest in India’s medical infrastructure.

However, despite its immense potential, the MVT sector faces key challenges. The absence of a regulatory framework has left the sector largely unorganized, leading to inconsistencies in service quality. Experts emphasize the need for government intervention to establish clear regulations, improve facilitation, and enhance structured marketing efforts to further strengthen India's reputation as a medical tourism hub.

Another challenge is the fragmentation of efforts across various ministries and organizations involved in MVT promotion. The absence of a dedicated nodal body results in inefficiencies, affecting coordination between airlines, hospitals, and hotels, which is crucial for a seamless patient experience.