India’s Medical Tourism: Strengthening a Global Healthcare Destination throughGovernance and Policy Reform
- Post by: IPRR
- July 26, 2025
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Manorama Bakshi[1]
[1]Visiting Senior Fellow at IMPRI, Director and Head of Healthcare and Advocacy at Consocia Advisory, Founder and director of Trilok Raj Foundation (TRF).
manorama.bakshi@gmail.com
| Title: | India’s Medical Tourism: Strengthening a Global Healthcare Destination through Governance and Policy Reform |
| Author(s): | Manorama Bakshi |
| Keywords: | Healthcare, Medical Tourism, Public Policy, Governance |
| Issue Date: | 25 July 2025 |
| Publisher: | IMPRI Impact and Policy Research Institute |
| Abstract: | Medical tourism in India has experienced significant growth over the past decade, driven by cost-effective treatments and advanced medical capabilities. Yet, despite its comparative advantage, India continues to lag behind global leaders like Thailand and Singapore. This article examines the current state of India’s medical tourism sector, critically analyzes its strengths and challenges through a SWOT framework, and offers actionable policy recommendations to position India as a global hub for medical and wellness travel. |
| Page(s): | 5-8 |
| URL: | https://iprr.impriindia.com/indias-medical-tourism/ |
| ISSN: | 2583-3464 (Online) |
| Appears in Collections: | IPRR Vol. 3 (2) [July-December 2024] |
| PDF Link: | https://iprr.impriindia.com/wp-content/uploads/2025/07/I2-Indias-Medical-Tourism_-Manorama-Baklshi-IPRR-V4I1-Jan-June-2025.pdf |
(January-June 2025) Volume 4, Issue 1 | 25th July 2024
ISSN: 2583-3464 (Online)
Introduction
India’s medical tourism industry has seen a remarkable surge, attracting millions of international patients with its promise of affordable, high-quality healthcare. Despite this upward trend, structural and systemic limitations hinder the sector’s ability to fully capitalize on its potential. Drawing on the recent discourse presented at the National Summer School on Health Sector Management and Governance: An Indian Perspective, this article synthesizes key insights on India’s medical tourism landscape and outlines a strategic policy roadmap for its enhancement.
- Understanding Medical Tourism and Its Scope
Medical tourism refers to the cross-border movement of individuals seeking healthcare interventions—ranging from critical surgeries to elective cosmetic procedures and wellness therapies. India’s appeal lies not only in conventional medical care but also in traditional wellness systems such as Ayurveda and Yoga. The growing global demand for holistic health solutions has positioned India uniquely in this emerging market.
- Historical Roots of Medical Travel in India
India’s association with medical travel is not new. Historical references to surgical practices by Sushruta and the therapeutic use of Ayurveda underline a longstanding tradition of health-based travel to the subcontinent. The Mughal period saw further institutionalization through hospital systems and surgical innovations. This rich legacy continues today with a renewed focus on modern and integrative health systems.
- Global Landscape and India’s Position
The global medical tourism market is valued at over $100 billion and growing annually at a rate of 15–20%. Countries like Thailand, Mexico, and Turkey have strategically positioned themselves through supportive visa policies, global hospital accreditations, and strong marketing campaigns. India ranked 10th in the Medical Tourism Index in 2024 and welcomed approximately 7.3 million medical tourists, marking a tenfold increase from 2014.
Despite the presence of advanced multispecialty hospitals and internationally trained physicians, India remains underutilized as a medical tourism hub compared to its Southeast Asian counterparts. Countries such as Thailand receive over 2.5 million medical tourists annually—thanks in part to streamlined visa processes and superior cleanliness standards in healthcare infrastructure.
- SWOT Analysis: Medical Tourism in India
A critical evaluation of India’s medical tourism potential was conducted through a SWOT framework, identifying key internal and external factors affecting growth:
Strengths
- Cost Advantage: Medical procedures in India are significantly cheaper—up to 80% less than in Western nations—even after factoring in travel and accommodation costs.
- Skilled Workforce: A large pool of internationally educated and English-speaking medical professionals enhances patient confidence and care outcomes.
Weaknesses
- Infrastructure Deficiencies: Despite initiatives like the Swachh Bharat Abhiyan, cleanliness and hygiene standards in hospitals—especially public ones—remain below international expectations.
- Limited Accreditation: The scarcity of NABH- or JCI-accredited hospitals raises questions about quality assurance and global trust.
- Regulatory Barriers: Cumbersome visa processes and fragmented regulatory frameworks across states hinder patient inflow and hospital coordination.
- Safety Concerns: Issues related to personal safety, particularly for women and foreign tourists, pose reputational risks to the sector.
Opportunities
- Demographic Shifts: An aging population in many countries creates sustained demand for affordable and efficient healthcare options abroad.
- International Partnerships: Joint ventures between Indian hospital chains and foreign healthcare providers can facilitate cross-border patient flows and technology transfers.
- Policy Support: Initiatives like ‘Heal in India’ and promotion of AYUSH systems can strengthen India’s wellness tourism offering.
- Insurance Integration: Expanding medical insurance coverage to include international patients can reduce out-of-pocket expenditures and attract new demographics.
Threats
- Global Competition: Thailand, Singapore, and Turkey continue to invest heavily in branding, accreditation, and infrastructure, outpacing India in medical tourism readiness.
- Policy Inconsistency: The lack of a central regulatory body for medical tourism leads to fragmented strategies across states and private institutions.
- Negative Perceptions: Media reports of crimes against tourists and inconsistent service quality can erode international trust in India’s healthcare tourism ecosystem.
Policy Recommendations for Strengthening India’s Position
To realize its full potential, India must pursue a multi-pronged policy approach that addresses operational inefficiencies and global competitiveness:
- Targeted Market Segmentation: India should prioritize outreach to three key zones: the SAARC region, Southeast Asia, and high-income countries in Europe and North America. Customizing services and marketing for each segment can yield better conversion and patient satisfaction.
- Simplified Visa and Immigration Protocols: A streamlined medical visa policy with provisions for digital applications, faster processing, multi-entry access, and Ayush Visa categories under the “Heal in India” campaign would significantly reduce bureaucratic friction.
- Boosting Foreign Investment through PPPs: Strategic collaborations via public-private partnerships (PPPs) can enhance infrastructure, introduce advanced technologies, and foster innovation—similar to successful models in Thailand. Recent FDI in Indian hospital chains by Gulf and African nations is an emerging trend to be nurtured.
- AYUSH Integration and Wellness Infrastructure: India should continue to institutionalize traditional medicine systems within its medical tourism offerings by creating AYUSH-based wellness centers supported by global research and clinical trials. The Ministry of AYUSH can collaborate with international academic bodies to validate practices and train global practitioners.
- Global Accreditation and Cleanliness Standards: Encouraging hospitals to seek NABH and JCI accreditations, while enforcing strict hygiene audits, will elevate India’s reputation among high-end medical tourists. Government incentives for private hospitals that meet international cleanliness benchmarks should be considered.
- Safety and Cultural Sensitivity Training: Establishing safety cells in tourism zones and conducting cultural competency workshops for healthcare staff can create a more welcoming environment for foreign patients and families. Guidelines on international patient etiquette and multilingual services should be mainstreamed.
- Medical Insurance for Tourists: Development of tailored insurance products—covering travel, treatment, and post-operative care—can mitigate financial risks and promote long-term confidence among medical tourists. The IRDAI can explore international tie-ups to broaden this coverage.
Conclusion
India stands at a critical juncture in its medical tourism journey. While it boasts world-class capabilities in healthcare delivery and wellness traditions, systemic challenges and perception issues continue to hinder its global competitiveness. With the global medical tourism market expected to surpass $180 billion by 2028, India has a clear opportunity to tap into this demand, contributing not just to GDP but also to employment in the healthcare, hospitality, and wellness sectors.
Addressing these challenges through targeted investment, regulatory reforms, digital innovation, and international collaboration will be vital to transforming India into a leading destination for medical and wellness tourism. Ultimately, medical tourism success is inseparable from larger reforms in health governance—where transparency, accreditation, and community trust are key pillars. The sector holds the potential not only to boost economic growth but also to redefine India’s soft power in the global health landscape.