Medical Tourism in India ? A Massive Opportunity

Medical tourism refers to the travelling of people from their country of origin to other countries for medical treatment. While previously it was believed that people from developed nations would travel to developing countries for affordable medical treatment, people from less developed nations are also traveling to developing countries due to lack of access to quality healthcare in their own country.

The current market size of Indian medical tourism

Reports suggest that the Indian medical tourism industry would reach $9 billion in 2020, which is roughly 18%^[i] market share of the global medical tourism market. The industry’s annual growth is slated at 18% CAGR, making medical tourism a growing contributor to the Indian healthcare industry. State-of-the-art medical facilities coupled with skilled doctors and low cost of treatment makes India one of the most preferred medical tourism destinations.^[ii]

In addition to conventional medical treatments, alternative therapies such as Ayurveda and Yoga are also being actively promoted and consumed by patients coming from across the world.

Why has India emerged as a leading hub for medical tourism?

Several factors have worked in India’s favour to make it one of the most sought after medical tourism destinations:

1. Relatively Low Cost

According to Medical Tourism Market Report, India offers quality medical care at about 1/10th of what it may cost in the US.^[iii] In fact, the savings can start from 65% to 90% with patients receiving quality care in India.^[iv] This makes it easy for people to get the treatment that may be otherwise unaffordable for them.

2. M-Visa

India has recently introduced the M-visa, where visas for medical purposes are issued in a relatively short time. Patients requiring critical surgeries are given priority. Access to timely treatment is one of the main reasons why people come to India.

3. Easy Access

Compared to Western countries, where the waiting time for critical surgeries is weeks or even months, in India, there is almost no waiting time. India has a wide network of hospitals and many of them offer personalized services such as private rooms, customized dining facilities, special assistance for the disabled, and more, at a lower costs compare to those in Western countries.

4. Language Flexibility

Because most doctors speak fluent English, which is one of the most widely used language across the globe, language is not a barrier. Some hospitals may also offer facilities of language translators to facilitate communication between the doctor and the patient.

5. Alternative Medicine

AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha, and Homeopathy) is also a major category within medical tourism that a lot of foreigners visit India for. India has developed a vast AYUSH infrastructure comprising lakhs of registered practitioners. ^[v] In fact, in January 2020, the AYUSH industry already stood at $10 billion and is expected to grow at an accelerated pace, driven by favourable policies^[vi]

Growth Outlook of Medical Tourism Market

The global medical tourism market is estimated to grow to nearly $207.9bn by 2027.^[vii] Considering that India enjoys ~18% market share of the global medical tourism market, we can expect robust growth in the years to come.

Given how huge the medical tourism opportunity is for the Indian healthcare industry, companies in the healthcare arena such as hospitals, diagnostics, R&D players, and drug manufacturers are well-poised to witness massive growth over the longer term.

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[i] http://ficci.in/ficci-in-news-page.asp?nid=17703#:~:text=According%20to%20a%20report%20by,global%20market%20share%20by%202020.

[ii] https://edition.cnn.com/2019/02/13/health/india-medical-tourism-industry-intl/index.html

[iii] http://ficci.in/ficci-in-news-page.asp?nid=17703#:~:text=According%20to%20a%20report%20by,global%20market%20share%20by%202020.

[iv] https://edition.cnn.com/2019/02/13/health/india-medical-tourism-industry-intl/index.html

[v] http://www.ficci.in/Medical-Value-Travel-Report.pdf

[vi] https://www.ciiblog.in/industry/ayush-is-booming-in-india/

[vii] https://www.grandviewresearch.com/industry-analysis/medical-tourism-market