India 10th in medical tourism for low-cost treatments; market to hit Rs 12 trillion

India is strengthening its position as a global medical tourism destination even as the domestic healthcare sector prepares for sustained expansion over the next few years, according to a report by Antique Stock Broking.

The report, titled India Hospitals: Scaling Capacity to Meet Rising Healthcare Demand, said India’s growing appeal among international patients is being supported by competitive treatment costs, expanding healthcare infrastructure and policy support.

According to the report, “India has rapidly emerged (10th rank in Medical Tourism Index) as one of the leading destinations for medical tourism.”

It noted that international patients are increasingly choosing India for access to advanced healthcare services at lower costs.

“Cost-effective treatment options, often at a fraction of the prices charged in developed countries, attract a significant number of international patients seeking high-quality yet affordable care.”

The report added that government measures have also contributed to improving India’s competitiveness in the sector.

“The government’s proactive policies, streamlined visa procedures for medical travellers, and investments in healthcare infrastructure further enhance India’s competitiveness in this space.”

Alongside rising medical tourism, Antique projected strong growth in India’s healthcare delivery ecosystem and estimated the market could reach nearly Rs 12 trillion by FY30, expanding at a compound annual growth rate of 10-12 per cent.

Private healthcare providers are expected to account for a greater share of treatment delivery over the coming years, with their contribution projected to increase from 64 per cent in FY20 to around 69 per cent by FY30.

The report also highlighted capacity expansion across hospital networks.

According to Antique, 15 hospital operators covered in the study added nearly 19,000 beds between FY23 and FY26, taking combined capacity to more than 70,000 beds.

The report projected that these operators could expand bed capacity by another 54 per cent between FY26 and FY30, lifting total capacity beyond 108,000 beds.

Most of the planned additions are expected to come through brownfield expansion projects, which Antique said could support faster breakeven timelines and improve returns on capital.

The report added that concerns around oversupply remain limited despite aggressive expansion plans, supported by rising insurance penetration, government healthcare schemes including Ayushman Bharat and PM-JAY, and growing demand for organised healthcare services.

Antique maintained a positive outlook for the sector, saying established hospital chains with strong brands, multi-specialty capabilities and scalable operating models remain well placed to benefit from increasing healthcare spending and higher inflows of international patients. Moneycontrol