09

India’s medical tourism sector is projected to grow at a CAGR of 21.1% between 2020 and 2027. According to the Economic Survey 2025–26, medical and wellness tourism is emerging as a major growth driver, supported by India’s cost advantage, skilled healthcare professionals, and robust infrastructure. Medical tourist arrivals increased from around 1.12 lakh in 2009 to over 6 lakh during 2022–24, significantly outpacing overall inbound tourism growth. The segment now accounts for nearly 6.5% of foreign tourist arrivals, with the market valued at an estimated US$ 8.7 billion in 2025 and projected to reach US$ 16.2 billion by 2030.

Union Finance Minister Nirmala Sitharaman recently announced a major initiative to position India as a global hub for medical tourism through the establishment of five Regional Medical Hubs across the country. Presenting the Union Budget, she said the Centre would support states in developing these hubs in partnership with the private sector. Envisioned as integrated healthcare complexes, the hubs will combine medical services, education, and research under one umbrella.

The proposed hubs will include AYUSH centres, Medical Value Tourism Facilitation Centres, and supporting infrastructure for diagnostics, post-treatment care, and rehabilitation. Sitharaman noted that the initiative would generate significant employment opportunities for doctors and allied health professionals. She also announced the establishment of a new national-level mental health institute and the expansion of emergency care services nationwide.

Highlighting the shortage of national mental healthcare institutions in northern India, the finance minister said a second National Institute of Mental Health and Neuro-Sciences (NIMHANS-2) would be set up to bridge the regional gap. In addition, existing National Mental Health Institutes in Ranchi and Tezpur will be upgraded as Regional Apex Institutions to strengthen specialised care and training. Addressing the heavy financial burden of medical emergencies on families, particularly the poor and vulnerable, she also announced that Emergency and Trauma Care Centres would be established in district hospitals, increasing their capacity by 50%.

Experts Weigh In: A Welcome Move

Dr Dileep Mavlankar, a public health expert, welcomed the proposal to establish emergency and trauma care centres in district hospitals, noting that the impact would be greatest if priority were given to districts along national and state highways, where road accidents are more frequent. He emphasised that injuries often prevent primary earners from working, compounding household distress. However, he cautioned that infrastructure alone would not suffice without adequate numbers of doctors and specialists, who are often reluctant to serve in district hospitals. He also pointed out that the budget did not address air and water pollution, despite their significant health implications.

Dr Ajay Swaroop, Chairman, Board of Management, Sir Ganga Ram Hospital, said India is uniquely positioned to emerge as a global medical tourism hub, given its highly trained professionals and advanced technologies that match international standards. However, he noted the absence of a comprehensive official framework, with the sector currently driven largely by private players. “If the government formally promotes medical tourism, it will bring global recognition as well as substantial economic benefits,” he said.

Dr Swaroop added that effective implementation would require clear systems to identify patient origins, needs, and service requirements, alongside transparent pricing and ethical practices. “A centralised database tracking international patients, the procedures they seek, and their countries of origin is essential for planning specialised services, such as liver or kidney transplant centres,” he explained.

Dr Vinay Aggarwal, former member of the first Medical Tourism Board and former National Chairman of the Indian Medical Association, and currently Chairman of the Pushpanjali Group of Hospitals, highlighted the long-standing absence of a structured framework for medical tourism. Prior to recent government interventions, international patients depended mainly on private hospitals or facilitators, with no organised system for visas, documentation, or patient coordination, making the process fragmented and inconsistent.

He added that scaling up the sector requires strong safeguards for ethical practices, quality assurance, and seamless coordination. “Growth in medical tourism must focus not only on attracting patients but also on delivering timely, standardised, and reliable care,” he said, noting that initiatives such as e-visas and the creation of a dedicated medical tourism board have already improved India’s credibility as a global healthcare destination.

India’s medical tourism sector recorded robust growth in 2025, driven by treatment costs that are 60–90% lower than in Western countries, globally accredited hospitals, and a top-10 global ranking. The country has emerged as a leading destination for cardiology, oncology, and transplant procedures. Government initiatives such as ‘Heal in India’ and the expansion of e-Medical Visas to 171 countries have further accelerated this momentum, with Delhi, Mumbai, Chennai, and Bengaluru emerging as major hubs.