Charting The Future: India's Medical Tourism Sector Set For Explosive Growth

In an era defined by globalisation, India has emerged as a frontrunner in the booming medical tourism industry. The Medical Tourism Index 2023-24 highlights India's prominent position, projecting a remarkable revenue surge in the healthcare sector, expected to reach Rs 2,670.37 Bn by 2027, with an impressive compound annual growth rate (CAGR) of approximately 34.92 per cent from 2023 to 2027. Indian medical tourism accounts for about 6.5 per cent of the global tourism market. According to Global Data, the current market size of the Medical Tourism Industry is around USD 31.91 Billion.

NITI Ayog estimates Indian Economy could earn an additional USD 9 Billion by 2026 from Medical Value Travel (MVT) and Wellness tourism.

India's Unique Healthcare Landscape:

According to FICCI, the MVT Industry in 2021 was estimated to have a market size of Rs.3.9L crores of around USD 49.6 billion and is expected to grow at a CAGR of 29.3 per cent to reach a market size of 15L crores of around  USD 192.9 billion by 2026.

India offers over 200 types of medical services and has over 40 Healthcare facilities accredited by Joint Commission International(JCI) and 1400 National Accreditation Board For Hospitals and Healthcare Providers(NABH) accredited Hospitals.

Ranked 10th globally, 12th in wellness tourism markets, and 5th in Asia-Pacific, India's healthcare industry seamlessly integrates modern medical practices with traditional systems such as Ayurveda and Yoga. The availability of top-notch healthcare infrastructure, a pool of well-trained medical experts, and cost-effective treatment alternatives make India an appealing destination for those seeking high-quality healthcare services, say industry experts.

Anas Abdul Wajid, Senior Director and Chief Sales and Marketing Officer at Max Healthcare, emphasises, "India has become a popular choice for medical value travel in recent times, In the first year after Covid the business recovered completely and grew by 10 per cent compared to the pre-Covid levels " 

Medical Treatments That Garner Maximum Footfall

Medical procedures like heart surgery, knee transplant, cosmetic surgery and dental care attract maximum footfall in the case of medical tourism as the cost of treatment in India is considered to be the lowest in Asia, much lower than Thailand, Indonesia, Singapore and Hong Kong, FICCI’s official data claims. 

As per the 2023 findings from HFS Research and MediConnect India, the cost of dental implants in India stands at USD 1000, a notable contrast to the United States where it is USD 2800 and Thailand where it is USD 3636. Additionally, the expense for knee transplants in India is USD 6200, significantly lower than the US at USD 50000 and Thailand at USD 12297. Similarly, for angioplasty, the cost in India is USD 3300, substantially less than the US (USD 57000) and Thailand (USD 3788).

Leading Players and Specialised Services:

Catering to diverse medical needs major players in the Indian healthcare landscape, including Max Healthcare, Apollo Hospitals, Fortis Healthcare and Manipal, attract medical tourists for specialised treatments like transplants, cardiac surgeries, oncology, orthopaedics, and neurosciences. 

Dr Harinder Singh Sidhu, Senior Vice President of Corporate Development, Head of international Business at Apollo Hospitals, emphasises the cornerstone of their services, stating, "Orthopaedic procedures are another cornerstone of our services, drawing medical tourists with the promise of top-tier care and cost-effectiveness." Apollo Hospitals alone conducts around 30 per cent of its 23,000 transplants for international patients from over 50 countries, he added.

" Global patients choose Manipal Hospitals for cutting-edge medical procedures, including oncology services such as bone marrow transplants, advanced radiation therapy, chemotherapy, and state-of-the-art robotic surgery. Additionally, the hospital is renowned for its expertise in cardiology and spine surgery.,” remarked Vikas Tayer, Head, of International Healthcare Services at Manipal Health Enterprises.

Another industry expert Wajid opines,”The top specialities at our hospital that attract the most medical tourists are Transplants (Liver, Bone Marrow, and Kidney), Cardiac Surgeries (including Paediatric Cardiac Surgeries), Oncology and Orthopaedics and Neuro-Sciences.”

Challenges and Opportunities on the Horizon: 

While navigating the future of medical tourism challenges such as visa issues persist, India anticipates tremendous opportunities in the medical tourism industry. The nation's reputation as the "Hospital capital of the world" is growing due to cost-effective healthcare and minimal waiting times for treatment. The government’s forthcoming initiatives, including Heal in India,  will further propel the growth of medical tourism, industry elites say.

Anil Vinayak, GCOO at Fortis Healthcare, highlights the challenges, stating, "Visas from countries such as Afghanistan, Pakistan, etc., are not issued. Political unrest in many countries (Sudan, Ethiopia, Afghanistan, Yemen, etc.) is a major concern and impacts Medical Value Travel (MVT) adversely." However, amidst challenges, there are significant growth opportunities as well, Vinayak added.

Projections and Revenue Growth:

A lucrative future awaits the medical tourism industry. The revenue from medical tourism in India has steadily increased, reaching USD 7.4 billion in 2022, with projections indicating a staggering USD 43.5 billion by 2032, industry experts claim.

Industry experts, including Tayer, highlight robust growth in international business, reflecting a demand for high-quality medical services in India. Another Industry expert Wajid, opines, "In the first year after Covid, the business recovered completely and grew by 10 per cent compared to the pre-Covid levels. This year, International business is growing more than 27 per cent over last year." 

“As per Apollo Group, international medical travel revenue has increased by 18 per cent in FY FY23-24 compared to last financial year,” says Sidhu.

While Vinayak said,” Fortis has a consistent increase in revenues from medical travel. International patient revenues stood at INR 126.7 Crores, a growth of 15.6 per cent over Q2FY23 and 10.6 per cent over Q1FY24. International patient revenue contribution increased to 8.3 per cent of hospital revenues versus 8.0 in Q2FY23 and Q1FY24. Post-covid revenues have witnessed an average increase of 15 per cent from pre-covid days.”

Industry experts highlight that The Indian government has prioritised three key areas to boost medical tourism, targeting a threefold increase in revenue to USD13 billion within four years. These priorities involve creating a distinctive brand for India as a wellness destination, enhancing medical and wellness tourism infrastructure, and establishing an Online Medical Tourism Portal. 

To overcome challenges like awareness and infrastructure, the government collaborates with ministries, private sectors, and healthcare stakeholders. Initiatives such as the Heal in India campaign and Marketing Development Assistance Scheme contribute to this. By easing medical visa norms and investing in infrastructure in key cities, the government fosters collaboration with the private sector. 

Rajeev Taneja, Founder and CEO of Global Care remarked, “The One Earth - One Health initiative and the 6th International Summit on Medical Value Travel underscored the commitment to sustainable medical tourism. The goal is to position India globally, with the government aiming for USD 53.51 billion in the sector by 2028.” This growth is fostered through collaborations between the public and private sectors, allowing for 100 per cent foreign direct investment in medical infrastructure and offering fiscal incentives, he added.

Efforts include creating a comprehensive digital portal for streamlined patient journeys and promoting India as a destination for medical value travel and wellness tourism. The government envisions India as a sustainable and responsible medical and wellness tourism destination and aims to create a robust framework through dedicated agencies, governance structures, and institutional frameworks. Partnerships with source markets are also considered for effective medical care arrangements, suggests experts.

Looking Ahead, navigating challenges and embracing opportunities as India's medical tourism industry charts its course for the next five years, challenges like visa issues, global competition, and geopolitical disturbances loom. However, opportunities abound, and India can leverage its dynamic market by identifying emerging regions with healthcare needs, embracing cutting-edge healthcare solutions, and enhancing accessibility through improved connectivity.