Background of Medical Tourism Development

India’s medical tourism has rapidly developed since the 21st century, building on its rich heritage of traditional medicine like Ayurveda. A significant turning point came in the early 2000s when the Indian government positioned medical tourism as a national strategy.
In 2002, a report jointly published by the Confederation of Indian Industry (CII) and McKinsey & Company highlighted the potential of medical tourism, significantly influencing government policy-making. This report emphasized the high quality and cost competitiveness of Indian medical services, suggesting that with appropriate policy support, India could become a global medical destination.
In 2003, the then Finance Minister Jaswant Singh proposed the concept of a “Global Healthcare Hub.” Based on this vision, the government promoted the development of airport infrastructure and simplified medical visa procedures. The rapid issuance of medical visas particularly facilitated the influx of foreign patients.
In 2014, to further enhance convenience, India introduced an electronic medical visa (e-Medical Visa), allowing online applications and significantly streamlining the process. By 2019, the stay duration for this visa was extended from 60 days to six months, benefiting patients requiring long-term treatment.
The 2025 budget introduced the “Heal in India” initiative, which aims to strengthen medical tourism through public-private partnerships. This initiative includes support for international accreditation of medical institutions, creation of multilingual medical information portals, and participation in international medical exhibitions.
The private sector has also been proactive, with major hospital groups like Apollo and Fortis Healthcare focusing on international-standard facilities. By 2017, 38 facilities had obtained JCI accreditation, and by 2024, over 1,600 hospitals were accredited by NABH, contributing significantly to the quality and international reputation of Indian healthcare.
These accreditations demonstrate that Indian medical institutions meet international quality standards, which is crucial for gaining the trust of foreign patients. Additionally, Indian hospitals offer high-quality medical services at a fraction of the cost in the U.S. (1/5 to 1/10), further enhancing their international appeal.
Current Situation and Scale
As of 2024, India’s medical tourism market size has reached $7.8 billion, holding a significant position in the global market. Market research predicts that this market will grow at an annual rate of 17.2% until 2034, surpassing the average growth rate of the global medical tourism market.
In 2023, India received 7.3 million medical tourists, with foreign patients accounting for 15-30% of major hospitals’ patient load. The demand for advanced treatments like cardiac surgery and joint replacement is particularly high, showcasing India’s medical prowess. For instance, the success rate of cardiac bypass surgery is an impressive 98.5%, comparable to renowned hospitals in the U.S. and Europe.
Additionally, wellness tourism combining Ayurveda and yoga is driving growth. Long-term stay programs focused on stress-related and chronic diseases have gained popularity, with a 25% increase in usage in 2023.
Geographically, Chennai is known as the “Medical Capital,” receiving 15% of all foreign patients. Chennai’s popularity stems from its advanced medical facilities, warm climate, and relatively low living costs. Other major hubs include Delhi, Mumbai, and Bangalore, with Mumbai’s hospitals particularly renowned for cancer and reproductive treatments.
The COVID-19 pandemic significantly impacted India’s medical tourism industry, with a 75% decrease in foreign patients from 2020 to 2021. However, the sector recovered by 33% in 2023, thanks to stringent infection control measures, expanded telemedicine services, and successful marketing strategies positioning India as a safe destination.
The government aims to receive 10 million medical tourists by 2025 and is implementing various strategies to achieve this goal. These include setting up dedicated medical visa counters at major airports, enhancing medical interpreter training programs, and strengthening partnerships with foreign insurance companies.
Customers of Medical Tourism
India’s medical tourism customers can be categorized based on geographical proximity, cultural similarity, and economic factors:
Neighboring Countries (Bangladesh, Nepal, Sri Lanka):
These countries account for 57% of medical tourists, primarily seeking short-term stays for general or emergency treatments. Bangladesh, in particular, accounted for 68.9% of these patients in 2022, driven by the affordability and quality of Indian medical services. Many of these countries lack comprehensive medical infrastructure, leading patients to seek advanced treatments in India.
For example, many Bangladeshi patients visit hospitals in Kolkata and Chennai for cancer treatment and cardiac surgery. Linguistic and cultural similarities also play a significant role in their choice of India.
Middle East and Africa:
Patients from this region often seek long-term stays for cardiovascular diseases and cancer treatments, with Dubai and Nigeria being key sources. Middle Eastern patients are attracted to India’s advanced medical technology and relatively low costs, particularly for cardiac and orthopedic surgeries.
African patients often visit India for specialized treatments not available in their home countries, such as pediatric cardiac surgery and complex cancer treatments. In 2023, there was a 40% increase in medical tourists from Africa, indicating a growing market.
Western Countries and Oceania
Patients from the U.S., U.K., and Australia often choose India for fertility treatments and cosmetic surgery. These procedures are expensive in their home countries and often not covered by insurance, making India an attractive option.
Notably, there is an increasing trend of patients undergoing advanced robotic surgeries in India. For instance, prostate cancer and cardiac surgeries using the Da Vinci system are popular, as they cost significantly less in India compared to their home countries.
CIS Countries (Russia, Kazakhstan)
These regions show high demand for orthopedic and regenerative medicine, with growth rates exceeding 20% annually since 2023. India’s medical technology is gaining trust, particularly in areas like stem cell therapy and joint replacement.
Patients from these countries often prefer packages combining treatment with tourism, choosing medical facilities near tourist destinations like Goa and Kerala.
Indian medical institutions cater to these diverse customer needs by offering culturally sensitive services. For example, hospitals provide halal food for Muslim patients and set up prayer rooms. Additionally, many facilities offer English-speaking concierge services for Western patients.
Major Medical Institutions
India’s medical tourism is supported by several prominent institutions with unique services and specialties:
Apollo Hospitals Group:
Apollo Hospitals is a leading medical group in India’s medical tourism. It operates over 70 facilities globally and receives over a million foreign patients annually. Apollo Hospitals is renowned for its high success rates in cardiac surgeries and advanced medical technologies. It also offers remote consultation services through its “Apollo ProHealth” platform, allowing patients to plan their treatment before traveling.
Fortis Healthcare:
Fortis is recognized internationally for its cancer treatment and organ transplantation services. It has JCI-accredited cancer centers and maintains a high survival rate for liver transplants. Fortis provides comprehensive support for international patients, including multilingual services and visa assistance.
Medanta – The Medicity:
Medanta specializes in advanced specialized care and research, known for robotic-assisted surgeries and AI diagnostics. It performs over 10,000 international surgeries annually, particularly in cardiac and neurosurgery. Medanta collaborates with international research institutions to develop new treatments and has a dedicated helipad for emergency transport.
Artemis Hospital:
Artemis focuses on preventive medicine and health check-up programs, popular among European patients. It offers comprehensive diagnostic services using advanced equipment and has a helipad for emergency medical transport.
Future Prospects
India’s medical tourism industry is expected to continue growing, driven by several factors:
1. Expansion of Digital Technology and Telemedicine:
The Indian government plans to deploy a nationwide telemedicine platform, enabling foreign patients to consult with Indian specialists online before traveling. This will enhance convenience and allow for pre-travel treatment planning.
2. Focus on Precision Medicine and Genomics:
As part of the “National Digital Health Mission,” India is setting up genomic analysis centers to enhance precision medicine. This will enable personalized treatment plans based on individual genetic profiles, improving outcomes for advanced cancer treatments and rare diseases.
3. Reducing Regional Disparities and Expansion to Local Cities:
Efforts are underway to decentralize medical resources from major cities like Delhi and Mumbai to smaller towns. By 2025, new hospitals will be built in 20 locations, improving local access to healthcare and attracting foreign patients to these areas.
4. Integration with Wellness Tourism:
India is integrating its traditional medicine (Ayurveda) and yoga with medical tourism, offering holistic care programs. These are particularly appealing for chronic and lifestyle diseases, attracting many Western patients.
5. Enhancing International Competitiveness:
The Indian government is enhancing services to improve international competitiveness, including multilingual support and dedicated foreigner services. Targeted marketing strategies are also being implemented for specific regions like Japan, China, and the Middle East.
Conclusion
India’s medical tourism industry is gaining global attention due to its cost-effectiveness, high expertise, and diverse services. With government support and innovative private sector initiatives, this industry is poised for sustained growth. While challenges like regional disparities and language barriers exist, the “Heal in India” initiative promises further development and expansion.
<References>
- Apollo Hospitals. (2023). Annual report 2023. Retrieved from https://www.apollohospitals.com
- Ministry of Tourism, Government of India. (2024). Heal in India initiative. Retrieved from https://tourism.gov.in
- Future Market Insights. (2024). India medical tourism market outlook 2034. Retrieved from https://www.futuremarketinsights.com
- Crisil Research. (2024). Medical tourism in India – statistics & facts. Retrieved from https://www.crisil.com
- ICRIER. (2023). Medical value travel in India: Challenges and opportunities. Retrieved from https://icrier.org