Bharat has done remarkable growth in the field of medicine. As a result, the country is becoming a hub of medical tourism, where people across the globe are coming to get treatment.
Why Medical Tourists from Abroad Want Treatment In Bharat?
As per the latest data by credit rating agency ICRA, medical tourism in Bharat has increased by around 33 per cent year-on-year in 2023, with expectations to surpass the pre-pandemic levels of 700,000 visitors recorded in 2019 in calendar year 2024. This is attributed to the Modi Government’s initiative to extend e-medical visa facilities to nationals of 167 countries, which is likely to further boost medical tourism footfalls. This increase in medical tourism is supported by Bharat’s quality medical facilities, competitive treatment costs and relatively short waiting time for procedures.
The agency projected that aggregate occupancy for its sample set of hospital companies will remain stable at 61-63 per cent in Financial Year 2025, down slightly from 64.7 per cent in Financial Year 2024. This stability is attributed to the ongoing demand for healthcare services and continued market share gains for organised players, said ICRA.
The average revenue per occupied bed (ARPOB) is expected to grow by four to six per cent in Financial Year 2025, following an 11 per cent increase in Financial Year 2024. This growth is due to an improved specialty mix, a better payor mix focusing on cash and insurance patients, and annual price adjustments to address cost inflation.
Expected Growth in Revenue
ICRA estimates a revenue growth of 12-14 per cent for its sample set companies in FY25. Enhanced operating leverage, cost optimisation and digitisation measures are likely to sustain an Operating Profit Margin (OPM) of around 22-23 per cent, compared to 23.1 per cent in FY24.
Notably, over the past decade, Bharat has gained a reputation in providing high quality medical service at low costs to medical tourists travelling from across the globe. However, with the travel bans during the COVID-19 pandemic, the influx of medical tourists had dipped. According to the Tourism Ministry, Bharat registered a negative growth of 79.4 per cent over 2020. Although, the situation looks positive once more owing to the efforts made to handle the pandemic situation, market insights suggest the demand forecast to increase at a robust 19 per cent CAGR in 2022.
Boost to Medical Tourists
Why is India emerging as the popular medical hub for patients? Bharat’s healthcare industry offers a combination of both modern and traditional forms of medicine which sets the country apart from others. First, it has a set of world-class doctors and hospitals that provide treatment at fractional rates when compared to other countries. Secondly, Bharat’s system of medicine – AYUSH i.e. Ayurveda, Yoga, Rejuvenation Therapy, Panchakarma, etc, which are the most ancient forms of medicine, are now gaining immense popularity globally.
Prime Minister Narendra Modi also recently announced plans to launch an AYUSH Mark. A mark to provide credibility to AYUSH products in Bharat and promote Bharat’s medical tourism sector. Additionally, the other medical services and facilities are also backed by the World Health Organisation (WHO) and the US Food and Drug Administration (US FDA).
To become the No.1 medical travel destination, there is a need for significant investments into making the healthcare industry and equipment attractive for international patients. Patients spend most of their time in guest houses and are prone to further infections from such places. Thus, proper infrastructure and standardisation needs to be brought into the tourism industry and nexus of guest house service providers urgently. Another aspect that needs to be tapped into is the opportunity for selling Indian health insurance to foreigners. This has the capability to generate an additional $9 billion in patient inflow to India.
To maximise industry’s potential, the Government is pulling out all its aces. The aim is to make Bharat the No.1 destination for Medical Tourism in the world, tripling its revenue to $13 billion within four years. The Government has also proposed an outlay of US$ 28.7 billion for health and well-being, which is 137 per cent higher than the previous year’s budget outlay.
Measures taken up by health Ministry
- Special provision of Medical Visa has been made for tourists travelling to India for healthcare purposes. This has been made available in 165 countries
- Setting up a feedback mechanism to obtain testimonials from tourists travelling to the country for medical purposes. This ‘one-step’ portal would add to the convenience and provide credible information for medical tourists coming to India
- The ‘Heal in India’ initiative aims to position the country as a global hub for medical and wellness tourism. Under this initiative, foreigners or those seeking medical help will be able to locate the list of hospitals in the country available to provide their choice of medical treatments through an ‘one step’ online portal. It is a one stop shop for all services from the treatment package cost, visa applications to grievance redressals and feedback. The initiative also aims at providing a database of healthcare professionals, including doctors, nurses, and pharmacists and will also include a section where professionals can specify the country in which they are most interested in providing their services.
Measures by Ministry of Tourism
- The Marketing Development Assistance Scheme (MDA) offers financial assistance to approved tourism service providers to promote an intricate nexus of facilities for the tourists to stay
- Publicity materials, such as brochures and CDs, intended to promote medical and health tourism have been circulated in target markets. Yoga/Ayurveda/Wellness has been promoted over the last two years in print, electronic, internet, and outdoor media under the Ministry of Tourism’s “Incredible India Campaign”
