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Strengthening India’s Medical Value Travel Sector: A Path Toward Resilience and Growth

Countries like the United States, Canada, and the United Kingdom present significant potential markets for medical tourism. The report highlights the importance of promoting India’s holistic approach to health, which combines advanced medical procedures with wellness and preventive care. Image: www.freepik.com

• By Pooja Chaturvedi Sah
• New Delhi
• Dec 17, 2024

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India’s Medical Value Travel (MVT) sector has grown rapidly over the past few decades, positioning the country as a leading global destination for medical tourism. With world-class healthcare services offered at competitive prices, India has become an increasingly attractive option for medical tourists, particularly those seeking complex medical treatments such as cardiac surgeries, bone marrow transplants, and joint replacements. 

Furthermore, India’s prominence in wellness and alternative medicine, including AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy), bolsters its position as a holistic destination for health and healing. 

According to the ICRIER report titled Looking Beyond Bangladesh: Making India’s Medical Value Travel Sector More Resilient, India’s MVT sector is poised to grow significantly in the coming years. The global medical tourism market is expected to expand at a compound annual growth rate (CAGR) of 21.1% from 2020 to 2027, with India ranking 10th in the global Medical Tourism Index (MTI) as of 2020. 

However, despite its promising prospects, the sector faces several challenges that could hamper its growth, limiting its ability to realize its full potential. 

Key Challenges Facing the Sector 

As per the report, one of the primary challenges confronting India’s MVT sector is the concentration of accredited healthcare facilities in a few key regions. Hospitals in states like Maharashtra, Karnataka, and Tamil Nadu account for the majority of the JCI and NABH-accredited hospitals in the country. This geographic concentration creates an imbalance, leaving regions such as the northeast and eastern India underserved, which limits options for international patients. 

Another critical issue identified in the report is the unregulated ecosystem of medical facilitators. These facilitators play an essential role in guiding medical tourists through the complexities of treatment options, travel arrangements, and post-treatment care. However, the lack of regulation and oversight in this area has led to instances of fraud and inconsistent service quality. 

The report advocates for the formalization of the facilitator ecosystem, including a certification process that would ensure better service delivery and protect both patients and service providers. The accessibility of health insurance also remains a barrier. The reliance on cash-based payments for medical procedures, coupled with the limited availability of insurance coverage for medical tourists, is a deterrent for many potential patients, especially from developed countries. 

Addressing this gap by making insurance more accessible and portable across borders is crucial to attracting a larger number of medical tourists. 

Opportunities for Growth and Diversification 

Despite these challenges, the MVT sector in India holds significant opportunities for growth. The report suggests that India can diversify its pool of medical tourists by targeting developed countries, where healthcare costs are rising and waiting times for treatments are increasing. 

Countries like the United States, Canada, and the United Kingdom present significant potential markets for medical tourism. To capitalize on this opportunity, India must build a strong global branding strategy that promotes not only the affordability and quality of its healthcare but also its diverse medical offerings, including traditional AYUSH therapies. 

The report highlights the importance of promoting India’s holistic approach to health, which combines advanced medical procedures with wellness and preventive care. In addition, improving the visibility of India’s accredited hospitals and medical institutions through digital platforms, such as the “Heal in India” portal, can enhance global recognition and make it easier for international patients to access information about available treatments. 

Policy Recommendations for a Resilient MVT Sector 

As outlined in the report, India must implement several policy reforms to ensure the continued growth and resilience of its MVT sector. Key recommendations include: 

1. Strengthening the Regulation of Medical Facilitators: A certification and registration process for medical facilitators is crucial to ensuring consistent and reliable services for medical tourists. This will enhance patient confidence and ensure a higher standard of care across the board. 

2. Diversifying Visa Policies: Extending e-visa facilities to more countries and offering longer validity periods would encourage more international patients to choose India for medical treatment. Streamlining visa processes would make it easier for medical tourists to navigate the administrative hurdles associated with seeking treatment abroad. 

3. Improving the Insurance Landscape: A critical step in attracting more medical tourists is improving the accessibility and affordability of health insurance for foreign patients. As per the report, the government should collaborate with global insurers to extend coverage for treatments in accredited Indian hospitals. In addition, enabling the portability of foreign health insurance would make India a more attractive destination for patients from countries with robust health insurance systems. 

4. Addressing Payment and Financial Systems: The reliance on cash payments for medical procedures can be a barrier for international patients. Introducing digital payment solutions, such as UPI ONE WORLD, would help facilitate seamless and secure transactions, making it easier for patients to pay for treatments and services. 

Conclusion: A Path Toward Sustainable Growth 

India’s Medical Value Travel sector holds enormous potential to contribute significantly to the economy and the global healthcare landscape. By addressing the challenges highlighted in the ICRIER report and implementing the recommended reforms, India can create a more resilient, diversified, and sustainable medical tourism sector. 

With a focus on improving infrastructure, regulating medical facilitators, expanding global outreach, and making healthcare more accessible to international patients, India can solidify its position as a global leader in medical value travel. 

This analysis draws upon key insights from the report Looking Beyond Bangladesh: Making India’s Medical Value Travel Sector More Resilient, published by ICRIER, which offers an in-depth examination of the current state of the sector and outlines a roadmap for future growth. The full report can be accessed here: https://icrier.org/pdf/pb-29.pdf