India's Medical Tourism Market Set To Hit $18 Billion By 2027: Report

In recent years, India has established itself as a global hub for medical tourism, attracting patients not only for advanced medical treatments but also for the opportunity to experience the country

The growth of India's medical tourism sector can be attributed to various factors, particularly the affordability of medical treatments

Source : Canva

India's medical tourism industry is experiencing robust growth, with projections estimating the market will reach $18 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 19, according to a new report released on Tuesday. The country has emerged as a top destination for international patients, offering high-quality healthcare services at a fraction of the cost compared to Western nations.

In recent years, India has established itself as a global hub for medical tourism, attracting patients not only for advanced medical treatments but also for the opportunity to experience its rich cultural heritage.

The report, published by Praxis Global Alliance, a global consulting firm, notes that the industry was valued at $7 billion in 2022. A key driver of this growth is the increasing influx of foreign patients coming to India for medical care. Between 2015 and 2019, the number of medical tourists visiting the country surged at a CAGR of 31 per cent, rising from 234,000 to 697,000.

However, the Covid-19 pandemic led to a sharp decline in 2020, causing a 74 per cent drop in Foreign Tourist Arrivals (FTAs). Despite this setback, the sector has rebounded significantly, with FTAs reaching 504,000 in 2023, growing at an impressive CAGR of 40 per cent.

'Largest Source Of medical Tourists'

Bangladesh remains the largest source of medical tourists, with 327,000 patients visiting India in 2022. Other significant contributors include Iraq and Yemen, along with patients from the Middle East and Africa.

The growth of India's medical tourism sector can be attributed to various factors, particularly the affordability of medical treatments. Procedures in India are much cheaper compared to countries like the United States and the United Kingdom. For instance, a heart bypass surgery in India costs approximately $5,000, compared to $144,000 in the US, while a knee replacement procedure in India is around $6,000, as opposed to $50,000 in the UK.

Additionally, India’s traditional healing practices, such as Ayurveda and Yoga, serve as complementary therapies alongside modern medical treatments, further attracting international patients. The country’s advanced healthcare infrastructure also plays a crucial role in enhancing its appeal, making it an increasingly popular choice for medical tourists.