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Medical Tourism in India: Top destinations, scenarios and all you need to know

India in recent years has emerged as a major hub for medical tourism and is now considered among the top 6 medical value travel destinations in the world. here is all you need to know about it..

Medical Tourism , or Medical Value Travel, refers to the industry where international patients travel across the border for medical, cosmetic, or wellness treatments. India in recent years has emerged as a major hub for medical tourism and is now considered among the top 6 medical value travel destinations in the world. Its rapidly growing medical tourism industry has put Delhi, Chennai, Mumbai and Kochi on the globe for millions of people across Asia and Africa, who turn to these cities for all their surgical needs. Our unrivalled knowledge , top-notch doctors, extensive experience, and premier hospitals enable us to dominate the Indian medical tourism market. The patient can receive affordable treatment packages in India. (Also read: Kerala Tourism focuses on ‘responsible tourism’ to increase the livelihood of locals )

Medical Tourism: Top destination and scenario in India(istockphoto)

In an interview with HT Lifestyle, Danish Ahmed, Founder, Healthtrip.com, shared important insights regarding medical tourism in India.

Medical tourism scenario in India:

Medical Tourism in India, in mid-2020, was estimated to be worth around USD 9 billion which makes India stand at Number 10 in the Global Medical Tourism Index. Approximately 2 million patients visit India each year from 78 countries for medical, wellness and IVF treatments, generating $6 billion for the industry which is expected to reach $13 billion by 2026 backed by the government’s Heal in India initiative. This not only generates jobs, profits and forex for hospitals but also creates very valuable soft power for India, positioning it as the Healing Center of the world. It also creates demand for high-end equipment, which results in continuous upgradation of Indian healthcare, resulting in a spiral of demand generating quality, generating more demand.

Why do they choose India:

India’s key advantage is the price at which it can deliver the world-class quality of healthcare, along with complementing treatments in Ayurveda, which gives it the unique positioning of Holistic Healthcare. Aptly called, Heal in India, the expected initiatives from the government will ease visa and forex norms for these patients, unlocking the tremendous potential of medical tourism in the country. India is known to be the land of natural medicines to the world. India and Ayurveda have a history that longs back in time.

Where are most medical tourists from:

Most of the tourists are from Asian or African countries such as Sri Lanka, Bangladesh, Nepal, Maldives, Indonesia and Kenya, among others.

Top 5 medical tourism destinations in India:

Chennai: One of the most well-liked locations in India for receiving medical care. According to research by the Confederation of Indian Industries, almost 40% of patients choose Chennai because of the city's high standard of care. Chennai, the "health capital of India," sees foreign patients annually for hip replacements, eye surgeries, cardiac bypasses, bone marrow transplants, and alternative medical procedures.

Mumbai: It is the city with India's fastest expanding medical tourism industry, and is home to a number of super speciality hospitals as well as a Research and Diagnostic Center for orthopaedic and weight reduction procedures. Mumbai is also well-known for its Ayurvedic therapies and cosmetic surgery.

New Delhi: Numerous outstanding private hospitals, including ones that offer packages for general surgery, eye surgery, heart care, and neurosurgery to foreign patients, can be found in the nation's capital.

Ahmedabad: Ahmedabad is another Indian city that is gradually rising to prominence as a centre for medical tourism. Many non-residents prefer seeking treatment in Ahmedabad because of its hospitals with top-notch amenities.

Bangalore: Due to the vast quantity of top-notch medical facilities and specialists among its medical professionals. These are Bangalore medical tourism's main attractions. There are also doctors in Bangalore who have had advanced training in the west with almost little wait time and quick access to medical care for visitors seeking treatment.

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Health & Lifestyle

Medical Tourism in India: Benefits, Risks, and Tips

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Table of Contents

India’s medical tourism industry has grown rapidly over the past decade, with nearly 2 million patients visiting from neighbouring countries each year and generating $13 billion in forex annually.

However, to become the top medical travel destination, improvements are needed in the ecosystem surrounding patient experience and accommodation. Investment in medical travel facilitators and standardised guesthouses is crucial, as is pursuing the opportunity for selling Indian health insurance to foreigners, potentially generating an additional $9 billion. 

Cross-border telemedicine also presents a large opportunity, given India’s skilled workforce and cost advantage.

In this blog, we will explore the benefits and risks of medical tourism in India, as well as provide tips for those considering travelling to India for medical treatment.

Medical tourism is a growing industry, and India is one of the most popular destinations for medical tourism. India has a well-established healthcare system, and many hospitals in India are accredited by international organisations such as Joint Commission International (JCI) and National Accreditation Board for Hospitals and Healthcare Providers (NABH). 

Additionally, India offers world-class medical treatment at a fraction of the cost of Western countries.

How is India becoming a popular medical hub for patients?

India is rapidly becoming a popular medical hub for patients due to a variety of factors.

  • Firstly, the country has a world-class healthcare industry that offers top-quality treatment at a fraction of the cost compared to other countries. This is due to the availability of highly skilled doctors and modern hospitals.
  • Secondly, India’s traditional systems of medicine, such as Ayurveda, Yoga, and Panchakarma, which are some of the oldest forms of medicine in the world, are gaining immense popularity globally.

The combination of modern and traditional medicine makes India a unique destination for medical tourism, with patients seeking a holistic approach to healthcare.

The Ministry of Health and Family Welfare has implemented various measures to promote medical tourism in India. These include:

Special provision of Medical Visa available in 165 countries, a feedback mechanism to obtain testimonials from medical tourists, and the ‘Heal in India’ initiative which aims to position the country as a global hub for medical and wellness tourism.

The initiative includes an online portal for foreigners seeking medical treatments, which provides a one-stop-shop for all services from treatment package costs to grievance redressals and feedback.

The initiative also aims to diversify its operations by sending Indian doctors abroad to treat patients.

Benefits of Medical Tourism in India:

  • Cost-effective treatment : The cost of medical treatment in India is significantly lower than in Western countries. Patients can save up to 80% of the cost of medical treatment in India compared to the USA.
  • Quality healthcare : Indian hospitals offer world-class healthcare facilities and services. Many hospitals in India have internationally trained doctors and nurses, and are equipped with the latest medical equipment and technology.
  • No waiting time : In many Western countries, patients have to wait months or even years for medical treatment. However, in India, patients can receive medical treatment immediately, without having to wait.
  • Travel and tourism opportunities : Patients can combine their medical treatment with travel and tourism. India is a popular tourist destination, with a rich cultural heritage and diverse cuisine.

Risks of Medical Tourism in India:

  • Language barriers : Patients who do not speak the local language may face communication difficulties with doctors, nurses, and other healthcare professionals.
  • Infection control : Infection control standards in some Indian hospitals may not be up to the same standards as those in Western countries.
  • Cultural differences : Patients may experience cultural differences in medical treatment and patient care.
  • Travel risks : Patients may face travel risks, such as jet lag, long flights, and exposure to different climates and diseases.

Tips for Medical Tourism in India:

  • Choose a reputable hospital : Do your research and choose a hospital that is accredited by international organisations such as JCI and NABH.
  • Consult with your doctor : Consult with your doctor before travelling to India for medical treatment. Your doctor can advise you on the risks and benefits of medical tourism and help you make an informed decision.
  • Plan your trip : Plan your trip in advance and make sure to arrange for transportation, accommodation, and other logistics.
  • Communicate effectively : Communicate effectively with healthcare professionals and make sure to ask questions if you do not understand something.
  • Follow infection control guidelines : Follow infection control guidelines, such as washing your hands regularly and wearing a mask if necessary.

Conclusion:

India, despite being a developing country, offers world-class and standardised medical services and care, aided by the latest technology.

In conclusion, the demand for the healthcare industry is expected to surge in the post-Covid world, and India has a significant potential to attract medical tourists from around the globe, including Europe and the Americas. The government’s efforts to make India the hub of medical tourism, combined with the increasing demand, are likely to make India a leading destination for medical tourism in the future. This development not only saves lives but also generates valuable jobs and more than $13 billion in forex, highlighting the potential benefits of medical tourism for India’s economy and healthcare sector.

Ayu Health is the largest chain of most trusted hospitals across the country with a team of 3000+ highly skilled doctors and state-of-the-art facilities, we’re committed to provide patients with comprehensive and personalised treatment plans. Whether you are seeking treatment for a chronic condition or simply looking to improve your overall well-being, book a consultation atAyu Health to help you achieve your health goals.

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Dr. S. Goel   is a renowned Internal Medicine Specialist currently practicing at Ayu Health, Bangalore .  He is a Specialist in Internal Medicine, Diabetes HTN, Paediatric Care, and Family Medicine.

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Instant Medical Wellness

Medical Tourism

medical tourism in india experience

URL: [“ https://medicalwellness.in/medical-tourism/ “]

Table of Contents:

  • Introduction

Travel and Tourism: A Blend of Wellness and Exploration

Agra: the majestic city of love, delhi: where history meets modernity, uttarakhand: nature’s abode, uttaranchal: pristine wilderness, jaipur: the pink city’s charm, medical travel facilitator: your companion in wellness and tourism, best medical tourism in india: a wellness odyssey, introduction to : medical tourism.

Medical tourism is not just about seeking world-class healthcare; it’s an opportunity to explore new horizons, cultures, and experiences while improving your well-being. In India, a land known for its rich history and diverse landscapes, medical tourism transcends traditional healthcare. It’s a holistic journey that combines top-notch medical treatments with unforgettable sightseeing adventures.

India’s allure as a medical tourism destination lies not only in its exceptional healthcare but also in its treasure trove of tourist destinations. When you embark on a medical journey here, you open doors to travel and tourism experiences that enrich both body and soul.

Begin your medical tourism adventure in Agra , home to the iconic Taj Mahal . While receiving top-notch medical care, you can immerse yourself in the splendor of this UNESCO World Heritage site. Witness the timeless symbol of love and explore Agra’s vibrant culture.

As a medical traveler, your journey may take you to Delhi , the capital city. Amidst your medical consultations, visit historical marvels like the Red Fort and Qutub Minar. Delhi’s bustling markets and culinary delights offer a sensory feast.

For those seeking rejuvenation in the lap of nature, Uttarakhand beckons. After medical treatments, lose yourself in the serene landscapes of the Himalayas. Uttarakhand offers trekking, yoga retreats, and spiritual experiences in Rishikesh and Haridwar.

Uttaranchal , known for its untouched beauty, offers medical tourists a chance to explore lush forests, tranquil lakes, and charming hill stations. Discover the unspoiled side of India while on your wellness journey.

Jaipur , the Pink City, provides a perfect blend of medical treatments and cultural immersion. While recovering from medical procedures, explore the city’s historic forts, palaces, and vibrant bazaars.

Your journey is made seamless with the assistance of a medical travel facilitator. They ensure that your medical and wellness tourism experience is well-planned, combining your healthcare needs with sightseeing adventures.

India’s reputation as a medical tourism hub extends beyond healthcare; it’s a holistic wellness odyssey. From sightseeing in Agra and Delhi to nature escapades in Uttarakhand and Uttaranchal, and cultural immersion in Jaipur, India offers the best of both worlds.

Conclusion To Tourism and Sightseeing

In India, medical tourism transcends the boundaries of traditional healthcare. It’s an opportunity to heal, rejuvenate, and explore. With the best medical travel facilitator by your side, your journey becomes a seamless blend of wellness and tourism, making India a top destination for medical and wellness tourism.

As you explore India’s diverse offerings, you’ll discover that this incredible nation isn’t just a destination for medical treatments; it’s a holistic sanctuary for wellness and exploration. Here, healthcare meets heritage, and rejuvenation blends with sightseeing. India invites you to experience a wellness journey like no other, where your health and happiness take center stage.

India’s Unique Blend of Healthcare and Tourism

India’s significance in the global medical tourism landscape is undeniable. While the world seeks high-quality healthcare solutions, India offers more than just medical expertise. It offers a holistic approach to well-being that combines the art of healing with the joy of discovery.

As you embark on your medical journey to India, you’ll find that wellness is deeply ingrained in the culture. The ancient practices of yoga and Ayurveda have their roots here, providing you with a well-rounded approach to health. These holistic practices are seamlessly integrated into your medical tourism experience, ensuring that you return home not only healed but also rejuvenated in body and spirit.

The Best of Medical Facilities

India’s reputation for exceptional medical facilities is well-deserved. Renowned hospitals and medical centers equipped with state-of-the-art technology and staffed by highly skilled professionals ensure that your healthcare needs are met with precision and care. From complex surgeries to advanced treatments, you can trust that you’re in capable hands.

Moreover, the cost advantage of medical treatments in India is a significant draw for international patients. High-quality care at a fraction of the cost compared to many Western countries makes India an attractive option for those seeking medical solutions without financial strain.

Cultural Immersion and Exploration

While your primary purpose in India may be medical in nature, the country’s diverse cultural tapestry offers endless opportunities for exploration. Each region of India boasts its unique traditions, cuisine, and architectural wonders.

Beyond the iconic landmarks, immerse yourself in the local way of life. Explore bustling markets, savor delectable street food, and engage with the warm and welcoming people of India. Your medical journey becomes a cultural odyssey, allowing you to connect with the heart and soul of the nation.

Sustainability and Wellness

India’s commitment to sustainability and wellness is evident in its growing eco-friendly and wellness tourism.

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Instant Medical Wellness LLP is a Medical Value Travel Facilitator (MVTF), having a network of professional doctors, hospitals, and wellness centers offering affordable treatments in New Delhi, and all over India.

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medical tourism in india experience

Welcome to Health Voyage India!

Experience World-Class Healthcare and the Beauty of India

At Health Voyage India, we believe in blending the best of healthcare with the rich cultural tapestry of India. We are your trusted guide to exceptional medical treatments and an unforgettable travel experience in one of the world's most vibrant destinations.

Why Choose India for Medical Tourism?

  • Advanced Medical Facilities: Access state-of-the-art hospitals and clinics equipped with the latest technology and staffed by highly skilled medical professionals.
  • Affordable Healthcare: Benefit from cost-effective treatments without compromising on quality, offering significant savings compared to many Western countries.
  • Comprehensive Services: From elective surgeries to holistic wellness therapies, India offers a wide range of medical services to cater to your health needs.
  • Cultural Richness: While you recuperate, immerse yourself in India's diverse heritage, serene landscapes, and spiritual retreats.

Our Services

  • Personalized Medical Packages: Tailored healthcare solutions combining treatment, recovery, and travel.
  • Seamless Coordination: Assistance with hospital bookings, medical visas, accommodation, and local transportation.
  • Cultural Immersion: Explore India’s landmarks, cuisine, and traditions with our customized tours.
  • 24/7 Support: Dedicated support team to ensure a comfortable and stress-free experience.

How It Works

  • Consultation: Reach out to us with your medical needs and preferences.
  • Customization: We curate a personalized medical and travel plan just for you.
  • Arrival in India: We take care of all arrangements, from airport pick-up to your first doctor’s appointment.
  • Treatment and Recovery: Receive top-notch medical care followed by relaxation and recovery in beautiful settings.
  • Exploring India: Discover the wonders of India at your own pace, with our guidance and support.

Testimonials

Hear from our clients who have experienced the transformative journey of healing and discovery in India.

Get Started

Ready to embark on your Health Voyage in India? Contact us today to discuss your medical travel needs and let us help you plan your journey to wellness and exploration.

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Introduction to Ayurveda: India’s Timeless Healing Tradition

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The Rise of Medical Tourism in India: An Overview

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medical tourism in india experience

How India Became One Of The Leaders In Medical Tourism

In the ever-expanding realm of medical tourism, India has emerged as one of the leaders in quality healthcare services.

Rafael Peña • Oct 11, 2023

medical tourism in india experience

In the realm of medical tourism, India has emerged as one of the leaders, beckoning health-conscious globetrotters seeking cost-effective, high-quality healthcare services. Beyond its landscapes and cultural treasures that have drawn travelers to this nation, India’s medical infrastructure and skilled professionals have firmly established it as a medical tourism hub.

While India ‘s medical tourism industry faced a setback in 2020 due to the pandemic, the future appears promising. Projections indicate a compound annual growth rate of 19% for 2022-2032, with the global market anticipated to exceed $285 billion. The allure of India stems from its competitive pricing. This is particularly true for alternative medical services like Ayurveda, yoga , and meditation, and a commitment to patient safety.

The Journey to Wellness

Medical tourists embark on journeys to foreign lands for various reasons. India’s comprehensive healthcare offerings, including cosmetic and non-elective surgeries, open transplants, and more, address the diverse needs of patients. The nation’s competitive pricing still allows patients to save significantly, even factoring in travel and accommodation expenses.

Many specialized treatments and world-class facilities have positioned India as an attractive destination for those seeking wellness solutions. In a fast-paced world, the prospect of immediate access to life-saving medical treatments holds immense appeal.

medical tourism in india experience

Challenges Faced and Overcoming Barriers

However, the path to medical tourism is not without its obstacles. Patients must navigate complex issues, such as language barriers, insurance hurdles, and the inherent challenges of international travel. Flight costs, while surmountable, add to overall expenses. The burden of loans for treatments can also can weigh heavily on individuals.

To bolster India’s position in medical tourism , the nation must provide full-fledged services tailored to the unique needs of patients. Bundled packages incorporating flights, accommodations, and transportation can ease the process for medical tourists.

India’s Competitive Edge

India’s competitive edge in the medical tourism landscape lies in its niche marketing, targeting wellness tourists , alternative treatment seekers, and individuals needing advanced medical care. The nation can champion therapies like Ayurvedic Siddha for ailments like arthritis and rheumatism, plastic surgery, dental care, skin treatments, and more.

By focusing on specific demographics and employing diverse marketing strategies, India can draw patients aged 36 to 65 from across the globe. Social media, travel agencies, email marketing, and word of mouth can serve as channels to showcase India’s medical prowess. Comprehensive services will elevate patient satisfaction, including pre-arrival, on-arrival, and post-treatment follow-ups.

India’s Unique Value Proposition

The advantages of choosing India for medical tourism are manifold. Patients can access top-notch healthcare while saving between 60-80% on treatment costs. India’s healthcare infrastructure adheres to international standards, with well-trained and experienced medical professionals offering quality healthcare. With minimal waiting periods, patients receive treatments swiftly, saving valuable time.

India’s appeal as a tourist destination also ensures that medical tourists can embark on a holistic journey of wellness, exploration, and self-discovery.

India’s Vision for the Future

India aspires to ascend to the zenith of the medical tourism industry, offering affordable, top-tier healthcare services that resonate with patients worldwide. To achieve this vision, India must address the challenges faced by medical tourists, continue to offer alternative treatments, and uphold its commitment to excellent customer service. By doing so, India will solidify its reputation as the most trusted and affordable provider of high-quality healthcare globally.

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Medical tourism in India – An overview of an emerging industry

India’s rich culture, heritage, and scenic beauty have long been major draws for tourists worldwide. However, in recent years, India has also emerged as a leading destination for medical tourism. Patients from all over the globe are now choosing India for medical treatment, attracted by the country’s world-class healthcare facilities and skilled medical professionals who offer a vast array of treatments and procedures, from organ transplants and cardiac surgeries to alternative therapies like Ayurveda, Yoga, and Naturopathy.

Medical tourism in India - An overview

With significant advances in medical research and the adoption of modern technologies, India’s healthcare sector has undergone remarkable growth and development in recent years. As a result, India can now provide top-notch medical services and treatments at a fraction of the cost patients would pay in their home countries. This affordability, combined with the availability of highly skilled medical professionals and cutting-edge medical technologies, has made India an increasingly popular destination for patients seeking medical treatments worldwide. With a plethora of advanced medical facilities, Chennai has become the medical capital of India, attracting a large number of tourists seeking the best medical treatment in India. Booking a car rental in Chennai is the ideal way to discover the diverse healthcare amenities available in the city.

India’s ascent as a premier medical tourism destination has been remarkable. Still, certain hurdles impede its potential to become the world’s leading hub for medical travel, such as transportation infrastructure. This article will explore the factors that have contributed to India’s rise as a prominent destination for medical tourism, as well as the challenges that hinder its progress towards becoming the top medical tourism hub, particularly in terms of transportation.

The gradual rise of India as a medical tourism powerhouse

India’s emergence as a medical tourism powerhouse has been a gradual process that has been ongoing for several decades. However, in recent years, India has become a top destination for medical travellers seeking high-quality and affordable medical treatments. One of the critical factors driving India’s growth in medical tourism is its highly skilled and experienced medical professionals. India has a large pool of doctors and medical specialists renowned for their expertise in various medical fields, including cardiology, orthopaedics, neurology, and oncology.

Another important consideration is the economic advantage provided by Indian healthcare providers. Medical treatments in India can be a fraction of the cost in nations such as the United States, the United Kingdom, or Australia, making it an appealing alternative for patients looking for economical healthcare. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), medical tourism in India was valued at around $3 billion in 2015 and is expected to rise at a compound annual growth rate (CAGR) of 15% to $8 billion by 2020. In 2017, an estimated 495,056 medical tourists visited India, with the bulk coming from Bangladesh, Afghanistan, and the Maldives.  

Healthcare in India

In February 2019, the Indian government extended its e-tourism VISA program to include medical visas to attract medical tourists to Chennai, India’s healthcare capital. This move aimed to simplify the application process and travel requirements for medical tourists. The medical visa allows for a maximum stay of six months. On August 30, 2019, foreigners were permitted to receive any medical treatment in India, except organ transplants, without requiring a medical visa.

Over 1.4 million medical tourists visited India in the past one year, making it one of the top destinations for medical tourism, said Union Minister of State for Tourism Shripad Naik. Today, about 2 million patients from these regions visit India annually, producing $4 billion in annual forex. However, the future is considerably brighter. 

Under the direction of Prime Minister Modi, India’s health minister, Dr Mansukh Madaviya, has declared Medical Tourism a champion sector, providing it with unprecedented support. The government is going all out to make India the world’s No. 1 destination for medical tourism, doubling it to $12 billion in four years and developing a new business that will employ millions of people across the country. To further boost the medical tourism industry in India, the government announced the AYUSH visa in April 2022. This visa is specifically for travellers seeking treatments under traditional Indian medical systems such as Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy. In addition, the government has also created a National Medical and Wellness Tourism Board to promote India as a medical tourism destination and establish policies and guidelines for the industry. 

By making additional investments in infrastructure, technology, and services and ensuring a hassle-free experience for international patients, the medical tourism sector in India could emerge as a significant source of foreign exchange earnings for the country. Moreover, this sector has the potential to be incorporated into a larger tourism ecosystem, resulting in substantial growth opportunities.

Popular medical procedures for tourists in India

India is famous for medical tourism due to its affordable medical treatments and state-of-the-art medical facilities. Some of the most popular treatments for medical tourism in India include:

Ayurveda retreat in Kerala

Ayurveda, a holistic medicinal system that originated in India about 5000 years ago, has been the primary medicine used in the country for centuries. According to a report by the Ministry of Tourism, Government of India, around 1.62 million medical tourists visited India in 2017, many of which came for Ayurvedic treatments. It is estimated that around 20-30% of medical tourists who visit India come for Ayurveda treatments, which is increasing yearly. Kerala, the southernmost state of India, is known as the “birthplace of Ayurveda” and is one of the most popular destinations for Ayurveda tourism in India. Some of the most popular Ayurveda retreats in Kerala include Somatheeram Ayurveda Village in Kovalam, Kairali Ayurvedic Health Resort in Palakkad, Ayurveda Yoga Villa in Wayanad, and Kalari Kovilakom in Kollengode. The best way to visit these resorts is by booking a cab from Kochi . 

Elephant pass ayurveda resort, Kerala

Apart from the metro cities, several destinations in India are known for ayurvedic treatments. Rishikesh and Haridwar, both located in Uttarakhand, are also known for their traditional ayurvedic centres. Varanasi, located in Uttar Pradesh, is another destination where people go for Ayurveda treatment. Even Goa, known for its beaches and nightlife, is home to several Ayurvedic centres that offer treatments for various health conditions. These destinations offer a perfect mix of traditional healing practices and scenic beauty, making them ideal for rejuvenating one’s mind and body.

In addition to Ayurveda treatments, many Ayurveda retreats in India offer a range of wellness programs, including yoga, meditation, and healthy food. Some of India’s most popular Ayurveda retreats include Ananda in the Himalayas, Ayurvedagram, and Kalari Kovilakom. These retreats offer a serene and rejuvenating environment for people to experience Ayurveda treatments and learn about the principles of holistic living.

Cardiac surgery

India has become a popular destination for cardiac surgery due to its advanced medical facilities and skilled doctors. According to a report by Medical Tourism Index, India ranks second in the world for cardiology and cardiac surgery after Thailand.

Orthopaedic surgery

India is famous for its advanced orthopaedic surgery procedures, including joint replacements and spinal surgeries. According to a report by the Medical Tourism Association, India is one of the top destinations for orthopaedic surgeries, with a cost savings of up to 90% compared to the US.

Cosmetic surgery

India has a growing cosmetic surgery industry, with many people coming to the country for procedures such as liposuction, breast augmentation, and facelifts. According to a report by the International Society of Aesthetic Plastic Surgery, India ranked fourth in the world for cosmetic procedures in 2019, with over 1.6 million procedures performed.

Cancer treatment

India is home to some of the world’s leading cancer treatment facilities, offering advanced treatments such as chemotherapy, radiation therapy, and immunotherapy. According to a report by the Medical Tourism Association, cancer treatments in India cost up to 60-90% less than in the US or Europe.

Dental care

Dental treatment in India - Medical tourism

India is a popular destination for dental treatments, with many people coming for procedures such as dental implants and root canals. According to a report by Patients Beyond Borders, India’s dental tourism market is expected to reach a value of USD 3.2 billion by 2022.

Fertility treatment

India’s thriving fertility treatment industry offers advanced treatments such as in vitro fertilisation (IVF) and surrogacy. According to a report by the Medical Tourism Association, fertility treatments in India cost up to 70-80% less than in the US or Europe.

Before travelling to India for medical treatments, it is important to do thorough research and consult with medical professionals to ensure a safe and successful experience. India’s medical tourism industry has grown significantly in recent years, and its reputation as a top destination for medical treatments is expected to continue to grow in the coming years.

One of the major challenges of medical tourism in India – Transportation

In India, transportation can be a significant challenge for domestic and international tourists, particularly regarding accessibility and reliability. In addition, poor infrastructure, inadequate public transport, and congested roads can make it difficult for patients to travel to and from hospitals, especially in cities. The lack of reliable transportation options can be a significant challenge for elderly and senior patients who may require special assistance and accommodations. For instance, they may need wheelchair-accessible vehicles, non-emergency medical transportation, or trained drivers who can help them navigate the complexities of medical treatment.

Moreover, medical tourism requires reliable and timely transportation for urgent medical care patients. Therefore, the lack of safe and efficient transportation options can be a significant deterrent for international patients seeking medical treatment in India and can impact the country’s potential to become a leading medical tourism destination.

To address these challenges, the Indian government and private sector must invest in improving transportation infrastructure and services. This includes developing more efficient public transport systems, building better roads and highways, and providing reliable and affordable transportation options to and from hospitals. Such initiatives can improve domestic tourism and make India a more attractive destination for medical tourism, boosting the country’s position as a global medical hub.

In addition to the challenges posed by poor transportation infrastructure, the issue of last-mile connectivity can also be a significant hurdle in making India the topmost medical tourism destination in the world. Patients seeking medical treatment in smaller cities or towns often need help finding reliable and affordable transportation options to reach their destination from the airport or railway station.

However, the advent of ride-hailing services like Savaari, a chauffeur-driven car rental company in India, has greatly improved the last-mile connectivity for patients travelling for medical treatment. Providing safe, reliable and affordable transportation options has helped make medical tourism more accessible and hassle-free for patients.

  • Patients travelling for medical treatment require timely and efficient transportation. Car rental services can offer reliable pick-up and drop-off services, ensuring that patients arrive at their destination on time. This can be particularly important for patients who require urgent medical attention or are travelling long distances.
  • Patients and their families may require a comfortable mode of transportation , especially during long journeys. Car rental services can offer comfortable and well-maintained vehicles, ensuring that patients and their families can comfortably travel. This can be particularly important for elderly patients who require extra care and comfort during transportation.
  • Safety is paramount when it comes to medical tourism. Car rental services can offer safe and secure transportation options with experienced and licensed chauffeurs. Patients can be assured that they are in safe hands, with well-trained and knowledgeable drivers about the local roads and traffic.

Savaari Car Rentals, a chauffeur-driven car rental company in India, recognised the growing demand for transportation services during the COVID-19 pandemic and swiftly responded by expanding its services to all 2000+ cities and towns where it operates. Savaari streamlined its operations to ensure timely service and began offering doorstep cab service within 90 minutes of booking hospital visits and vaccination appointments in any of the 2000+ cities. During the pandemic, Savaari served over 25,000 customers with their medical emergencies, providing them with reliable and safe transportation. Additionally, the company offered a 15 per cent discount on bookings made for vehicles to vaccination centres or hospitals when the country was grappling with the COVID-19 outbreak.

Savaari’s driver Ramesh, who transferred patients to hospitals during the pandemic, said, “ It was a conscious decision on my part to assist as many people as I could as a driver during these times. The fact that I was able to do my part to help the community and the city was the only thing that kept me going through that difficult period. I also got the opportunity to assist a pregnant lady on her way to and from the hospital, which brought me joy as I was able to save two lives from the clutches of the pandemic. I keep reminding myself that in every patient I carry, I see a mother, a father, a sister, and a brother. ”

Savaari car rentals for medical tourism in India

Cab services like Savaari in India can provide other value-added services , such as facilitating language translation, helping with paperwork and medical formalities, and offering customised tours for patients and their families. The services can be particularly beneficial for elderly patients who may require extra assistance during their medical trip. The company offers safe and reliable transportation services that meets the specific needs of elderly patients, including help with luggage, mobility aids, and other support services. By leveraging technology and innovative solutions, these services can significantly boost medical tourism in India and help the country emerge as a leading destination for medical treatment.

Top 5 medical tourism destinations in India

With state-of-the-art medical facilities and skilled healthcare professionals, India has become a hub for medical tourism. If you are considering medical tourism in India, here are the top five destinations that offer advanced medical facilities and skilled healthcare professionals.

  • Chennai – Chennai, also known as the “health capital of India,” is a popular destination for medical tourism. The city is home to several world-class hospitals, including Apollo Hospitals and Fortis Malar Hospital, specialising in various medical treatments, including cardiology, oncology, and orthopaedics.
  • Mumbai – Mumbai is another popular destination for medical tourism in India. The city has several renowned hospitals, such as Lilavati Hospital and Research Centre and Kokilaben Dhirubhai Ambani Hospital and Medical Research Institute, known for their expertise in specialities like neurology, cardiology, and oncology.
  • Delhi – Delhi is India’s capital city and a central medical tourism hub. The city is home to some of the top hospitals in the country, including Max Super Specialty Hospital and Apollo Hospital, which offer world-class medical treatments in specialities like cardiology, neurology, and orthopaedics.
  • Hyderabad – Hyderabad is rapidly emerging as a popular destination for medical tourism in India. The city has several world-class hospitals, such as Apollo Hospitals and Yashoda Hospitals, which specialise in medical treatments like cardiology, oncology, and neurology.
  • Bangalore – Bangalore, also known as the “Silicon Valley of India,” is a popular destination for medical tourism. The city has several renowned hospitals, such as Manipal Hospital and Fortis Hospital, known for their expertise in medical treatments like cardiology, oncology, and neurology.

There are several destinations in India apart from the metro cities where people go for medical treatment. Kerala is famous for its Ayurvedic treatments and is also emerging as a medical tourism destination, with several hospitals offering world-class facilities. Ahmedabad in Gujarat is also becoming a popular destination for medical tourism, with hospitals such as Sterling Hospital and Apollo Hospitals offering specialized treatments. Other popular destinations for medical treatment in India include Jaipur in Rajasthan, Chandigarh in Punjab, and Coimbatore in Tamil Nadu. These cities have well-established healthcare infrastructure and highly skilled doctors, making them a preferred destination for patients seeking quality medical care. The availability of affordable medical treatments and a peaceful environment also makes these cities a popular choice among domestic and international patients.

If India’s transportation infrastructure improves for medical tourism, it can lead to significant growth in the medical tourism industry. Improved transportation facilities will make it easier for medical tourists to access medical facilities and move around the country. This can result in increased patient inflow, better coordination between hospitals and hotels, and, ultimately, boost the country’s economy. Furthermore, it can enhance India’s reputation as a top medical tourism destination and attract even more patients from around the world. The most convenient way to travel to these medical destinations is to download our car rental app . Better transportation facilities can have a positive impact on the medical tourism industry and the country’s growth as a whole.

Medical tourism updates:

  • Himachal Pradesh has vast potential for medical tourism: Health minister
  • Kerala will be transformed into a global healthcare hub, says CM Vijayan
  • Over 1.4 million medical tourists visited India in past one year, says Tourism Minister

Last Updated on January 17, 2024 by Swati Deol

Medical tourism in India - An overview of an emerging industry

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Frequently Asked Questions

Medical tourism is simply the process of traveling abroad to a specific destination to obtain certain medical procedures. Patients have been traveling outside their regions for years to obtain medical procedures due the long waiting periods associated with socialized medicine. Now they have an opportunity to seek top quality procedures, where they can recover in anonymity and luxury at more affordable rates.

People consider seeking medical care abroad for a number of reasons. An increasing number of people are having major medical procedures done abroad due to the staggering difference in cost. Many people in the United States find themselves without insurance or with insurance that has limited coverage or pre-existing conditions. When faced with the need to have cardiac, orthopedic or other major surgeries, many people have traveled abroad for care in order to save money. For example, one can travel abroad for heart bypass surgery in a prestigious medical center with a three-week recovery for under $20,000. The total cost for the medical procedure alone in the United States would routinely be in excess of $100,000.

The Clinical outcomes are at par with the world’s best centers having internationally qualified & experienced Doctors. Costs of the medical procedures in India are approximately 1/5th to 1/10th of costs in the west. This cost differential enables you the opportunity to have a vacation in an exotic country, recover in a 4 to 5 star resort in complete anonymity, 

 Yes, Currently India receives patients from over 50 countries across the world. Here are some reasons behind its emergence as the preferred healthcare destination: The cost of medical care in India is very low when compared to that in many western countries. India has a vast reservoir of skilled doctors. Many of them have proved their mettle in the US and UK and returned to India to work in hospitals here. The caliber of other doctors practicing in India is also of a very high order.

Any — from the simplest to the most serious life-saving procedures. This is not to say that all services are available everywhere at uniformly high quality. India, for example, has perhaps the best reputation for heart surgery in the world, alongside the United States. The quality of plastic surgery is renowned in India and sought after internationally.

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10 best cities for medical tourism in India

In recent times, cities for medical tourism in india have developed a good infrastructure and reputation. medical tourism in india has been growing by 30% each year., indian doctors are well respected and have a high reputation all over the world..

Some of the factors that contribute to this boom in the development of cities for medical tourism are the cost, quality, waiting time, etc. The cost of medical activities in India is around 10-20% of the cost in the US and 1/6th of the cost in European countries.

 Cities for medical tourism in India

India presently has approximately 18% of the global medical tourism market. According to the Ministry of Tourism, medical tourism in India has the potential to cross the $ 9 bn-mark, which would be 20% of the global market share in 2020.

India is considered one of Asia’s leading medical tourism destinations. India has several advantages which include quality medical manpower, specialized medical professionals, medical infrastructure, state-of-the-art facilities, pharmaceutical development, cost competitiveness, and the increasing popularity of healing practices under the AYUSH umbrella – Ayurveda, Yoga, Unani, Siddha, and Homeopathy.

 Cities for medical tourism in India

Ayurveda is the ancient Hindu healing system of maintaining balance within the body, using yogic breathing and exercises. Siddha and Unani are also ancient healing systems of balance in the body and herbal-based treatments.

The Ministry of AYUSH is a government of India agency to develop an awareness of traditional healing systems estimates these ancient healing systems at above $2.4 billion.

The development of India as a medical tourism hub has seen an influx of patients from the Middle East, South Asian countries, Europe and Africa for treatments for multi-organ transplants, cardiac care, cosmetic surgeries, hip replacements, cancer surgeries, and treatment and gastrointestinal procedures. As per a FICCI report, over 500,000 foreign patients come annually for treatment to India.

 Cities for medical tourism in India

A key factor, apart from cost completeness and the availability of world-class doctors and hospitals, is the Indian government’s policy on Medical and Medical Attendant Visa which allows multiple entry and long-term stay for medical care.

Taking this a step further is the Government mandating accreditation for wellness centers and Medical facilitators as well as giving approval for 75 new medical colleges in the country to boost the numbers of qualified doctors and nurses.

Here are some of the best cities for medical tourism in India.

It is one of the cheapest places to get world-class health care. Chennai medical tourism has been emerging due to its high standard of hospitals and reasonable cost. Because of its renowned doctors and exemplary health care facilities, this city attracts about 45% of health tourists from abroad and 40% of domestic health tourists.

 Cities for medical tourism in India

Chennai is known for its reputed eye surgery, hip replacement, bone marrow transplant, cardiac bypass, and alternative medical treatments.

International and domestic visitors come to Mumbai due to its highly qualified doctors, medical staff, and great medical facilities. The city boasts highly rated treatment facilities and super-specialty hospitals and Research and Diagnostic hubs making it the fastest-growing destination for medical treatments.

 Cities for medical tourism in India

A large number of people from India and worldwide travel to metropolitan cities like Mumbai for cancer treatment, cosmetic surgery, orthopedic, and weight-loss surgeries as well as and Ayurveda treatments. Healthcare centers in Mumbai ensure that such patients are treated well and receive the right treatment at the right time.

New Delhi is another great city in Mumbai offering cost-effective medical treatment. Being the capital of India, New Delhi has the reputation for being one of the best places to receive treatment for various health problems and illnesses. Delhi has several top-class private hospitals that offer special facilities for foreign and domestic patients including packages for general surgery – Heart Care, Neuro Surgeries, and Eye Surgery,

It has tie-ups with established hospitals in the city and provides one of the country’s best quality healthcare facilities and services.

 Cities for medical tourism in India

Situated in Tamil Nadu, they have some of the world’s best surgeons. They also have a 24×7 Helpdesk that is always available to patients during their stay. Coimbatore provided some of the best medical facilities at cost-efficient prices.

They have tie-ups with many reputed hospitals in the city and provide various types of treatment options such as Allopathy, Siddha, Ayurveda, Unani, Homeopathy, Dentistry, ENT, Eyecare, Wellness, and many more.

 Cities for medical tourism in India

Along with being one of the commercial cities in India, Ahmedabad aspires to be one of the best providers of healthcare in the country. Under the ‘Vibrant Gujarat’ project, medical tourism is given great priority and importance. Dental tourism is also big in Gujarat due to its economic cost. Hence, Ahmedabad is becoming a medical hub.

Medical tourism in Bangalore aims to provide patients with the best medical treatment facilities in India. People come to Bangalore worldwide to have a pleasant and comfortable treatment experience in India. This city provides cost-effective treatment packages designed by specialist doctors and highly qualified research teams.

 Cities for medical tourism in India

Known for its Ayurveda treatments, Alleppey, which is located in Kerala is another place to visit for medical services. People come here to experience different treatments and massages of this eco-friendly and holistic health care system. Come here to rejuvenate and undergo a wide range of Ayurvedic treatments and services that will make you look and feel young and healthy.

 Cities for medical tourism in India

Goa has always been a huge tourist destination for foreigners and Indians alike. People come here to unwind and have a good time. However, the medical tourism sector is also growing here. The chief minister of Goa, Pramod Sawant, has announced plans to expand medical tourism in the state.

It is one of the largest cities in India, having highly qualified physicians and doctors. Domestic private healthcare is significantly cheaper compared to various other western countries without compromising on the quality. The city also has fluent English-speaking staff as a result of which patients have no communication barriers.

 Cities for medical tourism in India

Another city in Tamil Nadu known for its Medical Tourism is Vellore. This city is situated 145 km from Chennai and is equipped with world-class medical facilities and the latest testing facilities. It is famous for its allopathy, homeopathy, Ayurveda, Unani, and acupuncture. The government of Tamil Nadu has also been aggressively promoting medical tourism here.

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Over the past decade, India 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 , India registered a negative growth of 79.4% 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 % CAGR in 2022.

Why is India emerging as the popular medical hub for patients? India’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, India’s systems of medicine: AYUSH i.e. Ayurveda, Yoga, Panchakarma, Rejuvenation Therapy, etc, which are the most ancient forms of medicine, are now gaining immense popularity globally. PM Modi also recently announced plans to launch an AYUSH Mark. A mark to provide credibility to AYUSH products in India and promote India’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 the industry’s potential, the government is pulling out all its aces. The aim is to make India the No.1 Destination for Medical Tourism in the world, tripling its revenue to $13 billion within 4 years. The government has also proposed an outlay of US$ 28.7 billion for health and well-being, which is 137% higher than the previous year's budget outlay.

The following measures have been taken up by the Ministry of Health and Family Welfare :

  • 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. This will allow India to diversify its operations by sending doctors abroad to treat patients.

The following measures have been taken up by the 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''.

To conclude, in the post-Covid world, the demand for the healthcare industry is bound to surge and there is a huge potential for India to realise and aggressively advance towards attracting medical tourists from other parts of the world including Europe and the Americas. With the government making it their priority to make India the hub of medical tourism, the initiatives combined with the surging demand are sure to make India the centre for all medical tourists in the future. Not only will India be the leader in saving millions of lives, but will also simultaneously generate valuable jobs and over $13 billion in forex.

This blog has been co-authored by  Priyanka Cardoz and Sanjana Saigal.

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Medical tourism refers to the practice of traveling to another country for medical treatment, often due to lower costs, better quality care, or shorter waiting times. In India, this industry has witnessed exponential growth, driven by factors such as world-class medical facilities, skilled healthcare professionals, and cost-effective treatments.

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Medical Tourism in India

Last updated on January 14, 2023 by ClearIAS Team

medical tourism in India

Medical tourism is described as any activity that involves a foreign visitor traveling and spending at least one night at the destination to rejuvenate, restore, or maintain health through medical intervention. Since the last decade of the 20th century, India has emerged as a global leader in the medical tourism sector. Read here to learn about the growth of medical tourism in India.

Over the past decade, India has gained a reputation for providing high-quality medical service at low costs to medical tourists traveling 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, India registered a negative growth of 79.4% in 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 % CAGR in 2022.

Table of Contents

Medical tourism in India

India’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, India’s systems of medicine: AYUSH i.e., Ayurveda, Yoga, Panchakarma, Rejuvenation Therapy, etc, which are the most ancient forms of medicine, are now gaining immense popularity globally.

The government also recently announced plans to launch an AYUSH Mark which is a mark to provide credibility to AYUSH products in India and promote India’s medical tourism sector.

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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).

India’s healthcare industry has advanced significantly over the past 30 years, as seen by the notable accomplishments it has made.

  • One of the industries that have contributed the most to revenue and are expanding quickly is healthcare.
  • Both public and private providers support the healthcare industry. Over the past few years, national health policies have been crucial in establishing a more inclusive healthcare system to achieve structured Universal Health Coverage (UHC).
  • In addition, India provides less expensive treatment alternatives than the US and the UK without sacrificing the standard of healthcare. About one-fourth, less is spent on therapy in India than it is in the United States.

In terms of alternate medical treatment, the Indian medical treatment systems of yoga, ayurveda, rejuvenation therapy, and panchakarma are among the most ancient methods of medical treatment in the world.

The southern state of Kerala has developed medical tourism services as one of its core products for promoting tourism in the region.

Based on the Medical Tourism Index 2020-21, India is ranked 10th out of the top 46 countries, 12th out of the world’s top 20 wellness tourism markets, and 5th out of 10 wellness tourism destinations in Asia-Pacific.

  • India boasts 39 Joint Commission International (JCI) accredited and 657 National Accreditation Board for Hospitals & Healthcare Providers (NABH) accredited hospitals.

India holds an advantage as a medical tourism destination due to the following factors:

  • Most of the doctors and surgeons at Indian hospitals are trained or have worked at some of the medical institutions in the US, Europe, or other developed nations.
  • Most doctors and nurses are fluent in English.
  • Top-of-the-line medical and diagnostic equipment from global international conglomerates is available at many Indian hospitals.
  • Indian nurses are among the best in the world. Nearly 1000 recognized nurses-training centers in India, mostly attached to teaching hospitals, graduate nearly 10,000 nurses annually.
  • Even the most budget-conscious traveler can afford first-rate service and luxury amenities

Most of the tourists are from Asian or African countries such as Sri Lanka, Bangladesh, Nepal, Maldives, Indonesia, and Kenya, among others.

Chennai, Mumbai, New Delhi, Ahmedabad, and Bengaluru are the top 5 medical tourism destinations in India.

Wellness tourism

Wellness Tourism includes travel for a less stressful lifestyle, promoting a healthier, and finding balance in one’s life.

Ayurveda, Yoga, meditation, Panchakarma, and Rejuvenation Therapy are among the most ancient systems of medical treatment in India and the best way to promote Wellness Tourism.

The Ministry of Tourism has drafted guidelines for wellness tourism. These guidelines address issues regarding making available quality publicity material, training and capacity building for the service providers, participation in international & domestic Wellness related events, etc.

Mushrooming of wellness centers in the country has given rise to the concern for quality service.

  • The Guideline for the Accreditation of wellness centers has been developed by National Board for Accreditation of Hospitals & Healthcare Services (NABH) in consultation with AYUSH and released during the workshop on wellness tourism organized by the Ministry of Tourism in 2011.
  • The Ministry of Tourism has also extended its Market Development Assistance (MDA) scheme to wellness tourism service providers including accredited wellness centers.

Impact of Covid-19 on medical tourism

Planned hospital operations decreased by as much as 80% during the state-wide lockdown in India caused by the new coronavirus outbreak, while unplanned systems decreased by 66%.

With the government of India’s assistance, the healthcare sector launched a comprehensive response strategy to combat the epidemic.

  • Specialized COVID-19 hospitals and isolation facilities were established, and resource mapping using technology was started.
  • The Indian government created several programs and used technology to combat the pandemic.
  • The Aarogya Setu app was utilized across the nation to improve contact tracing, syndromic mapping, and infection self-evaluation.
  • India not only met its own needs but also stepped up to help other nations during these difficult times.

Despite having several initiatives in place, the Medical Tourism industry of the country still faces some serious challenges.

  • One of the major challenges that India is facing is promoting and creating awareness about state-of-the-art facilities in India.
  • India is witnessing strong competition from destinations like Thailand, Malaysia, Singapore, Turkey, and South Korea with low-cost options.
  • In India, there is a lack of cohesiveness amongst the major players in the industry to come together and represent India on a world platform to acquire newer customers.
  • Apart from these, inconsistent fee structure and lack of transparency in billing to foreign patients, and absurdly high margins to trade to refer patients are some of the challenges.
  • Most Indian hospitals are also facing a lack of trust from foreign patients. The hospitals have observed poor hygiene awareness in medical attendants, unhygienic food handling, and lack of good hospitality services, heterogeneous pricing of services, and industry standards.

The government can play a vital part to upgrade the medical tourism sector. But the industry is facing the following problems which are caused by the governments. They are:

  • no regulations
  • taxation anomalies
  • bureaucratic roadblocks
  • no work on land reforms
  • lack of long-term investor-friendly policies
  • instability concerning terrorism and communal tensions.

On the part of insurance and allied services, the medical tourism industry in India is also facing some key bottlenecks. They are:

  • inadequate insurance cover
  • the underdeveloped insurance market in India
  • insurance frauds
  • overseas companies refusing reimbursement.

The following challenges, due to the infrastructural parts of the medical tourism sector in India, are:

  • lack of access
  • dearth of capital
  • Lack of community participation and awareness
  • Non-participation in the rural sector
  • lack of concern for sustainability
  • complex visa procedures
  • lack of good language translators
  • airport facilities still being inadequate

Government initiatives for medical tourism

The government has implemented various initiatives to overcome the challenges and push India’s rise as a hub of medical tourism through the promotion of ayurveda, yoga, and other Indian systems of medicine in the international market.

Heal India Initiative:

  • Heal in India is a new initiative developed under Ayushman Bharat Digital Mission in which there will be healthcare professionals, and hospital services to help patients seeking medical help in India.
  • With this type of initiative, Government aims at promoting Medical Tourism in India via Heal in India Portal.
  • It’s another Programme called Heal by India Government that aims to encourage Indian Health care Workers to go abroad and serve patients globally.

Market Development Assistance (MDA) scheme

  • MDA scheme offers financial assistance to approved tourism service providers.

Medical Visa provisions

  • Special provision has been made for tourists traveling to India for healthcare purposes.
  • The Ministry of Home Affairs has introduced a new category of visa, Medical Visa, that can be issued to foreigners traveling to India for healthcare reasons.

Setting up a feedback mechanism to obtain testimonials from tourists traveling to the country for medical purposes.

  • This ‘one-step’ portal would add convenience and provide credible information for medical tourists coming to India.

Way forward

To become the top-most 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 standardization need to be brought into the tourism industry and the 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 can generate an additional $9 billion in patient inflow to India.

The government is pulling out all its aces to maximize the industry’s potential. The aim is to make India the No.1 Destination for Medical Tourism in the world, tripling its revenue to $13 billion within 4 years.

The government has also proposed an outlay of US$ 28.7 billion for health and well-being, which is 137% higher than the previous year’s budget outlay.

In the post-Covid world, the demand for the healthcare industry is bound to surge and there is a huge potential for India to realize and aggressively advance towards attracting medical tourists from other parts of the world including Europe and the Americas.

With the government making it their priority to make India the hub of medical tourism, the initiatives combined with the surging demand are sure to make India the center for all medical tourists in the future.

-Article written by Swathi Satish

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The Role of Medical Tourism Companies in India

The concept of medical tourism has gained tremendous popularity in recent years. India has emerged as a leading destination for patients from all around the globe. The combination of world-class medical facilities, internationally trained medical professionals, affordable medical treatment costs, and cultural diversity has made India a preferred choice for medical tourists. Medical tourism companies in India are at the heart of this growing industry, playing a pivotal role in facilitating a seamless healthcare experience for international patients. In this blog post, let’s discover the significance of medical tourism companies in India’s healthcare sector, exploring their services, impact, and the prospects they offer.

Understanding Medical Tourism in India

Medical tourism involves individuals traveling to foreign countries to seek medical treatment, often due to lower costs or higher quality of care than in their home country. With its rich cultural heritage and modern medical infrastructure, India has emerged as a prominent player in the global medical tourism landscape. International patients are drawn to India for its high-quality healthcare services, advanced medical technologies, and diverse medical specialties.

Key Factors Contributing to India’s Medical Tourism Growth India’s medical tourism success is attributed to several key factors:

The country offers quality healthcare at significantly lower costs than many Western nations. This cost advantage, coupled with a wide range of medical treatments available, makes India an attractive destination for patients seeking diverse medical solutions.

India boasts state-of-the-art medical infrastructure and technology at par with the best in the world. The presence of internationally trained medical professionals further assures patients of expert care in their respective fields.

India’s cultural diversity and hospitality create a welcoming environment for international patients, easing their stay and treatment experience.

The Emergence of Medical Tourism Companies in India

Medical tourism companies have played a transformative role in India’s healthcare sector by catering to the needs of international patients. These companies provide various services, simplifying the entire medical tourism process. Medical tourism companies ensure a seamless healthcare journey for their clients.

Role of Medical Tourism Companies in Facilitating Seamless Healthcare Experience

Medical tourism companies act as a bridge between international patients and Indian healthcare providers. Their expertise lies in providing personalized and customized solutions for patients seeking specific medical treatments. They streamline the medical visa application process, ensuring a smooth entry into India. Moreover, these companies collaborate with accredited and quality healthcare facilities, ensuring that patients receive the best care during their treatment.

Successful Medical Tourism Experiences

Real-life testimonials from international patients highlight the crucial role played by medical tourism companies. Patients often share their positive experiences, praising the personalized attention, cost transparency, and high-quality medical care they received. These stories showcase how medical tourism companies have been instrumental in transforming patients’ lives by providing access to world-class healthcare solutions.

The Impact of Medical Tourism Companies on India’s Healthcare Sector

Medical tourism companies have significantly contributed to India’s healthcare economy. The influx of international patients has boosted revenue for the healthcare industry, facilitating investments in advanced medical technologies and infrastructure. Additionally, the growth of medical tourism has created opportunities for collaboration and partnerships between Indian healthcare providers and international organizations.

Challenges and Future Prospects for Medical Tourism Companies in India

While medical tourism companies have played a critical role in shaping India’s medical tourism landscape, they also face challenges. Addressing ethical and legal considerations, ensuring safety and quality standards, and leveraging technology for an improved healthcare experience are among the key challenges they must address. Looking ahead, medical tourism companies hold immense potential for growth by expanding their services to new geographical markets and embracing sustainable and responsible medical tourism practices.

Medical tourism companies are the backbone of India’s healthcare sector, serving as a guiding force for international patients seeking top-notch medical treatment. Their expertise in navigating the complexities of medical tourism and their dedication to providing personalized solutions have transformed India into a global healthcare hub. As the demand for quality healthcare services continues to rise, medical tourism companies are poised to play a vital role in shaping India’s healthcare sector, offering a beacon of hope for patients worldwide.

How UniMediks Ease Medical Tourism for Foreigners willing to get treatment in India?

UniMediks is crucial in easing medical tourism for foreigners seeking treatment in India. As a reputable medical tourism company, UniMediks is a trusted facilitator, providing international patients with a seamless and hassle-free experience. Here are some ways in which UniMediks eases the medical tourism process:

Extensive Network of Trusted Healthcare Providers: UniMediks has established strong partnerships with some of India’s best hospitals, clinics, and medical specialists. This vast network ensures foreign patients can access top-notch medical facilities and experienced doctors, offering various treatments and procedures.

Personalized Assistance and Guidance: Navigating a foreign healthcare system can be daunting for international patients. UniMediks provides customised assistance and guidance throughout the entire process. From the initial inquiry to post-treatment follow-ups, a dedicated team of coordinators and healthcare experts helps foreign patients feel at ease and well-informed.

Treatment Planning and Coordination: UniMediks understands that every patient’s medical needs are unique. The company takes the time to understand each patient’s condition and requirements to create a tailored treatment plan. They handle all aspects of coordination, including scheduling appointments, arranging accommodations, and organizing transportation.

Language Support: Communication can be a significant barrier for foreign patients seeking treatment in a different country. UniMediks bridges this gap by providing language support services, ensuring patients can effectively communicate with healthcare providers and understand their treatment options.

Cost Transparency: Medical treatment costs can vary significantly between countries. UniMediks ensures transparency in cost estimates, providing detailed information about the expenses involved in the medical procedure, accommodations, and other related services. This enables patients to make informed decisions about their healthcare options.

Visa Assistance: A medical visa is often a prerequisite for foreign patients travelling to India for treatment. UniMediks offers visa assistance, guiding patients through the application process and ensuring a smooth and timely visa approval.

Concierge Services: UniMediks goes the extra mile to make patients’ stay in India comfortable and stress-free. They offer concierge services, including airport transfers, local travel arrangements, and cultural experiences, making the medical journey in India pleasant.

Quality and Safety Assurance: UniMediks prioritizes patient safety and ensures that all healthcare providers in their network meet international quality standards. This includes accreditation from recognized medical authorities and adherence to best medical practices.

Post-Treatment Support: The relationship between UniMediks and the patient doesn’t end after treatment. They provide post-treatment support, including medical follow-ups and assistance with any concerns or queries that may arise after returning to their home country.

Customer Satisfaction: UniMediks values customer satisfaction and aims to provide the best possible experience for every patient. Positive reviews and testimonials from satisfied patients highlight their commitment to delivering excellent medical tourism services.

In a nutshell, UniMediks is vital in easing medical tourism for foreigners seeking treatment in India. By offering a comprehensive range of services, personalized assistance, and a network of trusted healthcare providers, UniMediks ensures that patients can confidently access quality and affordable medical care in India, making their medical journey a successful and positive.

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Patient Experience & Hospitality

Harnessing the power of experience: patient testimonials and reviews in medical tourism marketing.

medical tourism in india experience

In the ever-expanding world of medical tourism, where trust and confidence are paramount, patient testimonials and reviews play a pivotal role in shaping the decision-making process for prospective medical travelers. These firsthand accounts offer a glimpse into the patient's experience, providing valuable insights that can influence others considering international healthcare options.  

A 2023 survey by the Medical Tourism Association revealed that trust was a significant factor in making medical tourism decisions. More than 97% of the respondents indicated that trust was important in choosing a medical tourism destination, 80% of which considered it an “extremely important” factor. However, a significant component of trust in the medical travel context is positive reviews from previous health consumers.  

In addition to available information about a medical tourism program, anecdotal reports about the program’s quality of service and overall patient experience provide a strong base for patients to consider when planning their medical travel journey. Poor reviews of your offerings may be the major reason holding potential clients back from making that first contact.  

Leveraging these testimonials and reviews in medical tourism marketing not only builds credibility but also establishes a connection between potential patients and healthcare providers, fostering a sense of assurance and transparency.

Some of the important benefits of patient testimonials and reviews include:  

Building Trust through Authenticity

Patient testimonials serve as authentic narratives that potential medical tourists can relate to. By sharing personal stories of successful treatments, recoveries, and overall positive experiences, these testimonials humanize the medical tourism process. Authenticity resonates with potential patients, helping to build trust and confidence in the healthcare provider and the destination.

When prospective patients see real people sharing their journey and outcomes, they are more likely to trust the information provided. This trust is a key factor in the decision-making process, as individuals are more likely to choose a healthcare provider with a track record of positive patient experiences.

Personalized Connection

Patient testimonials create a personalized connection between the healthcare provider and potential patients. As individuals share their unique stories, concerns, and triumphs, it creates a sense of empathy and understanding. Prospective patients can find relatable aspects within these testimonials, helping them visualize their own medical journey and build confidence in the chosen healthcare destination.

Including diverse testimonials from patients with different medical conditions, backgrounds, and treatment experiences adds depth to the marketing strategy. This inclusivity allows a broader audience to connect with the stories shared, increasing the overall impact of the testimonials.

Online Reputation Management

In the digital age, online reviews and testimonials heavily influence consumer decisions. Effective medical tourism marketing involves proactive online reputation management, showcasing positive patient experiences and addressing any concerns or criticisms transparently. Healthcare providers should actively encourage satisfied patients to share their testimonials on reputable review platforms and their own websites.

By maintaining a positive online reputation, medical tourism destinations can attract a larger audience and stand out in a competitive market. Potential patients often research extensively before making healthcare decisions, and positive reviews can be a powerful differentiator.

Video Testimonials for Enhanced Engagement

While written testimonials are valuable, video testimonials take the engagement to another level. Videos capture the emotions, expressions, and sincerity of the patients, providing a more immersive experience for potential medical travelers. Creating a video library of patient testimonials allows healthcare providers to showcase a diverse range of success stories and adds a dynamic element to their marketing efforts.

Videos are easily shareable on social media platforms and can be incorporated into various marketing channels, enhancing the reach and impact of patient testimonials.

Incorporating Testimonials into Marketing Collateral

Integrating patient testimonials into various marketing collateral is essential for maximizing their impact. Whether it's on the official website, promotional brochures, social media campaigns, or email newsletters, testimonials should be strategically placed to reinforce key messages and highlight the strengths of the healthcare provider and destination.

In addition to testimonials, including before-and-after images, relevant medical statistics, and quotes from medical professionals involved in the patient's care can further enhance the credibility and persuasive power of the marketing collateral.

Leverage Patient Testimonials to Build Trust and Boost Visibility

In the competitive landscape of medical tourism, the power of patient testimonials and reviews cannot be overstated. These authentic stories serve as potent marketing tools, building trust, establishing connections, and influencing potential patients' decisions. Healthcare providers that harness the insights and experiences shared by satisfied patients not only enhance their marketing strategies but also contribute to a more transparent and patient-centric medical tourism industry.  

By embracing the voices of those who have experienced success, the industry can continue to thrive and positively impact the lives of individuals seeking healthcare solutions beyond their borders.

To learn more about the Medical Tourism Trust Survey and remodel your program to build trust, click here.  

Elevating Visibility: Advanced SEO Strategies for Medical Tourism Websites

Crafting success: building an effective content marketing plan for medical tourism, navigating the future: emerging trends in medical tourism and their marketing implications, innovating payment solutions: revolutionizing the financial landscape for medical tourists, continue reading, navigating the unexpected in international medical care, three key steps to building a great medical travel patient experience, the importance of the patient advocate in elevating the medical travel patient experience, featured reading, navigating cultural competence in medical tourism marketing: a global approach, navigating legal aspects of international healthcare: ensuring patient safety and compliance, branding in medical tourism: common challenges and solutions, medical tourism magazine.

The Medical Tourism Magazine (MTM), known as the “voice” of the medical tourism industry, provides members and key industry experts with the opportunity to share important developments, initiatives, themes, topics and trends that make the medical tourism industry the booming market it is today.

The Philippines economy in 2024: Stronger for longer?

The Philippines ended 2023 on a high note, being the fastest growing economy across Southeast Asia with a growth rate of 5.6 percent—just shy of the government's target of 6.0 to 7.0 percent. 1 “National accounts,” Philippine Statistics Authority, January 31, 2024; "Philippine economic updates,” Bangko Sentral ng Pilipinas, November 16, 2023. Should projections hold, the Philippines is expected to, once again, show significant growth in 2024, demonstrating its resilience despite various global economic pressures (Exhibit 1). 2 “Economic forecast 2024,” International Monetary Fund, November 1, 2023; McKinsey analysis.

The growth in the Philippine economy in 2023 was driven by a resumption in commercial activities, public infrastructure spending, and growth in digital financial services. Most sectors grew, with transportation and storage (13 percent), construction (9 percent), and financial services (9 percent), performing the best (Exhibit 2). 3 “National accounts,” Philippine Statistics Authority, January 31, 2024. While the country's trade deficit narrowed in 2023, it remains elevated at $52 billion due to slowing global demand and geopolitical uncertainties. 4 “Highlights of the Philippine export and import statistics,” Philippine Statistics Authority, January 28, 2024. Looking ahead to 2024, the current economic forecast for the Philippines projects a GDP growth of between 5 and 6 percent.

Inflation rates are expected to temper between 3.2 and 3.6 percent in 2024 after ending 2023 at 6.0 percent, above the 2.0 to 4.0 percent target range set by the government. 5 “Nomura downgrades Philippine 2024 growth forecast,” Nomura, September 11, 2023; “IMF raises Philippine growth rate forecast,” International Monetary Fund, July 16, 2023.

For the purposes of this article, most of the statistics used for our analysis have come from a common thread of sources. These include the Central Bank of the Philippines (Bangko Sentral ng Pilipinas); the Department of Energy Philippines; the IT and Business Process Association of the Philippines (IBPAP); and the Philippines Statistics Authority.

The state of the Philippine economy across seven major sectors and themes

In the article, we explore the 2024 outlook for seven key sectors and themes, what may affect each of them in the coming year, and what could potentially unlock continued growth.

Financial services

The recovery of the financial services sector appears on track as year-on-year growth rates stabilize. 6 Philippines Statistics Authority, November 2023; McKinsey in partnership with Oxford Economics, November 2023. In 2024, this sector will likely continue to grow, though at a slower pace of about 5 percent.

Financial inclusion and digitalization are contributing to growth in this sector in 2024, even if new challenges emerge. Various factors are expected to impact this sector:

  • Inclusive finance: Bangko Sentral ng Pilipinas continues to invest in financial inclusion initiatives. For example, basic deposit accounts (BDAs) reached $22 million in 2023 and banking penetration improved, with the proportion of adults with formal bank accounts increasing from 29 percent in 2019 to 56 percent in 2021. 7 “Financial inclusion dashboard: First quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024.
  • Digital adoption: Digital channels are expected to continue to grow, with data showing that 60 percent of adults who have a mobile phone and internet access have done a digital financial transaction. 8 “Financial inclusion dashboard: First quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024. Businesses in this sector, however, will need to remain vigilant in navigating cybersecurity and fraud risks.
  • Unsecured lending growth: Growth in unsecured lending is expected to continue, but at a slower pace than the past two to three years. For example, unsecured retail lending for the banking system alone grew by 27 percent annually from 2020 to 2022. 9 “Loan accounts: As of first quarter 2023,” Bangko Sentral ng Pilipinas, February 6, 2024; "Global banking pools,” McKinsey, November 2023. Businesses in this field are, however, expected to recalibrate their risk profiling models as segments with high nonperforming loans emerge.
  • High interest rates: Key interest rates are expected to decline in the second half of 2024, creating more accommodating borrowing conditions that could boost wholesale and corporate loans.

Supportive frameworks have a pivotal role to play in unlocking growth in this sector to meet the ever-increasing demand from the financially underserved. For example, financial literacy programs and easier-to-access accounts—such as BDAs—are some measures that can help widen market access to financial services. Continued efforts are being made to build an open finance framework that could serve the needs of the unbanked population, as well as a unified credit scoring mechanism to increase the ability of historically under-financed segments, such as small and medium-sized enterprises (SMEs), to access formal credit. 10 “BSP launches credit scoring model,” Bangko Sentral ng Pilipinas, April 26, 2023.

Energy and Power

The outlook for the energy sector seems positive, with the potential to grow by 7 percent in 2024 as the country focuses on renewable energy generation. 11 McKinsey analysis based on input from industry experts. Currently, stakeholders are focused on increasing energy security, particularly on importing liquefied natural gas (LNG) to meet power plants’ requirements as production in one of the country’s main sources of natural gas, the Malampaya gas field, declines. 12 Myrna M. Velasco, “Malampaya gas field prod’n declines steeply in 2021,” Manila Bulletin , July 9, 2022. High global inflation and the fact that the Philippines is a net fuel importer are impacting electricity prices and the build-out of planned renewable energy projects. Recent regulatory moves to remove foreign ownership limits on exploration, development, and utilization of renewable energy resources could possibly accelerate growth in the country’s energy and power sector. 13 “RA 11659,” Department of Energy Philippines, June 8, 2023.

Gas, renewables, and transmission are potential growth drivers for the sector. Upgrading power grids so that they become more flexible and better able to cope with the intermittent electricity supply that comes with renewables will be critical as the sector pivots toward renewable energy. A recent coal moratorium may position natural gas as a transition fuel—this could stimulate exploration and production investments for new, indigenous natural gas fields, gas pipeline infrastructure, and LNG import terminal projects. 14 Philippine energy plan 2020–2040, Department of Energy Philippines, June 10, 2022; Power development plan 2020–2040 , Department of Energy Philippines, 2021. The increasing momentum of green energy auctions could facilitate the development of renewables at scale, as the country targets 35 percent share of renewables by 2030. 15 Power development plan 2020–2040 , 2022.

Growth in the healthcare industry may slow to 2.8 percent in 2024, while pharmaceuticals manufacturing is expected to rebound with 5.2 percent growth in 2024. 16 McKinsey analysis in partnership with Oxford Economics.

Healthcare demand could grow, although the quality of care may be strained as the health worker shortage is projected to increase over the next five years. 17 McKinsey analysis. The supply-and-demand gap in nursing alone is forecast to reach a shortage of approximately 90,000 nurses by 2028. 18 McKinsey analysis. Another compounding factor straining healthcare is the higher than anticipated benefit utilization and rising healthcare costs, which, while helping to meet people's healthcare budgets, may continue to drive down profitability for health insurers.

Meanwhile, pharmaceutical companies are feeling varying effects of people becoming increasingly health conscious. Consumers are using more over the counter (OTC) medication and placing more beneficial value on organic health products, such as vitamins and supplements made from natural ingredients, which could impact demand for prescription drugs. 19 “Consumer health in the Philippines 2023,” Euromonitor, October 2023.

Businesses operating in this field may end up benefiting from universal healthcare policies. If initiatives are implemented that integrate healthcare systems, rationalize copayments, attract and retain talent, and incentivize investments, they could potentially help to strengthen healthcare provision and quality.

Businesses may also need to navigate an increasingly complex landscape of diverse health needs, digitization, and price controls. Digital and data transformations are being seen to facilitate improvements in healthcare delivery and access, with leading digital health apps getting more than one million downloads. 20 Google Play Store, September 27, 2023. Digitization may create an opportunity to develop healthcare ecosystems that unify touchpoints along the patient journey and provide offline-to-online care, as well as potentially realizing cost efficiencies.

Consumer and retail

Growth in the retail and wholesale trade and consumer goods sectors is projected to remain stable in 2024, at 4 percent and 5 percent, respectively.

Inflation, however, continues to put consumers under pressure. While inflation rates may fall—predicted to reach 4 percent in 2024—commodity prices may still remain elevated in the near term, a top concern for Filipinos. 21 “IMF raises Philippine growth forecast,” July 26, 2023; “Nomura downgrades Philippines 2024 growth forecast,” September 11, 2023. In response to challenging economic conditions, 92 percent of consumers have changed their shopping behaviors, and approximately 50 percent indicate that they are switching brands or retail providers in seek of promotions and better prices. 22 “Philippines consumer pulse survey, 2023,” McKinsey, November 2023.

Online shopping has become entrenched in Filipino consumers, as they find that they get access to a wider range of products, can compare prices more easily, and can shop with more convenience. For example, a McKinsey Philippines consumer sentiment survey in 2023 found that 80 percent of respondents, on average, use online and omnichannel to purchase footwear, toys, baby supplies, apparel, and accessories. To capture the opportunity that this shift in Filipino consumer preferences brings and to unlock growth in this sector, retail organizations could turn to omnichannel strategies to seamlessly integrate online and offline channels. Businesses may need to explore investments that increase resilience across the supply chain, alongside researching and developing new products that serve emerging consumer preferences, such as that for natural ingredients and sustainable sources.

Manufacturing

Manufacturing is a key contributor to the Philippine economy, contributing approximately 19 percent of GDP in 2022, employing about 7 percent of the country’s labor force, and growing in line with GDP at approximately 6 percent between 2023 and 2024. 23 McKinsey analysis based on input from industry experts.

Some changes could be seen in 2024 that might affect the sector moving forward. The focus toward building resilient supply chains and increasing self-sufficiency is growing. The Philippines also is likely to benefit from increasing regional trade, as well as the emerging trend of nearshoring or onshoring as countries seek to make their supply chains more resilient. With semiconductors driving approximately 45 percent of Philippine exports, the transfer of knowledge and technology, as well as the development of STEM capabilities, could help attract investments into the sector and increase the relevance of the country as a manufacturing hub. 24 McKinsey analysis based on input from industry experts.

To secure growth, public and private sector support could bolster investments in R&D and upskill the labor force. In addition, strategies to attract investment may be integral to the further development of supply chain infrastructure and manufacturing bases. Government programs to enable digital transformation and R&D, along with a strategic approach to upskilling the labor force, could help boost industry innovation in line with Industry 4.0 demand. 25 Industry 4.0 is also referred to as the Fourth Industrial Revolution. Priority products to which manufacturing industries could pivot include more complex, higher value chain electronic components in the semiconductor segment; generic OTC drugs and nature-based pharmaceuticals in the pharmaceutical sector; and, for green industries, products such as EVs, batteries, solar panels, and biomass production.

Information technology business process outsourcing

The information technology business process outsourcing (IT-BPO) sector is on track to reach its long-term targets, with $38 billion in forecast revenues in 2024. 26 Khriscielle Yalao, “WHF flexibility key to achieving growth targets—IBPAP,” Manila Bulletin , January 23, 2024. Emerging innovations in service delivery and work models are being observed, which could drive further growth in the sector.

The industry continues to outperform headcount and revenue targets, shaping its position as a country leader for employment and services. 27 McKinsey analysis based in input from industry experts. Demand from global companies for offshoring is expected to increase, due to cost containment strategies and preference for Philippine IT-BPO providers. New work setups continue to emerge, ranging from remote-first to office-first, which could translate to potential net benefits. These include a 10 to 30 percent increase in employee retention; a three- to four-hour reduction in commute times; an increase in enabled talent of 350,000; and a potential reduction in greenhouse gas emissions of 1.4 to 1.5 million tons of CO 2 per year. 28 McKinsey analysis based in input from industry experts. It is becoming increasingly more important that the IT-BPO sector adapts to new technologies as businesses begin to harness automation and generative AI (gen AI) to unlock productivity.

Talent and technology are clear areas where growth in this sector can be unlocked. The growing complexity of offshoring requirements necessitates building a proper talent hub to help bridge employee gaps and better match local talent to employers’ needs. Businesses in the industry could explore developing facilities and digital infrastructure to enable industry expansion outside the metros, especially in future “digital cities” nationwide. Introducing new service areas could capture latent demand from existing clients with evolving needs as well as unserved clients. BPO centers could explore the potential of offering higher-value services by cultivating technology-focused capabilities, such as using gen AI to unlock revenue, deliver sales excellence, and reduce general administrative costs.

Sustainability

The Philippines is considered to be the fourth most vulnerable country to climate change in the world as, due to its geographic location, the country has a higher risk of exposure to natural disasters, such as rising sea levels. 29 “The Philippines has been ranked the fourth most vulnerable country to climate change,” Global Climate Risk Index, January 2021. Approximately $3.2 billion, on average, in economic loss could occur annually because of natural disasters over the next five decades, translating to up to 7 to 8 percent of the country’s nominal GDP. 30 “The Philippines has been ranked the fourth most vulnerable country to climate change,” Global Climate Risk Index, January 2021.

The Philippines could capitalize on five green growth opportunities to operate in global value chains and catalyze growth for the nation:

  • Renewable energy: The country could aim to generate 50 percent of its energy from renewables by 2040, building on its high renewable energy potential and the declining cost of producing renewable energy.
  • Solar photovoltaic (PV) manufacturing: More than a twofold increase in annual output from 2023 to 2030 could be achieved, enabled by lower production costs.
  • Battery production: The Philippines could aim for a $1.5 billion domestic market by 2030, capitalizing on its vast nickel reserves (the second largest globally). 31 “MineSpans,” McKinsey, November 2023.
  • Electric mobility: Electric vehicles could account for 15 percent of the country’s vehicle sales by 2030 (from less than 1 percent currently), driven by incentives, local distribution, and charging infrastructure. 32 McKinsey analysis based on input from industry experts.
  • Nature-based solutions: The country’s largely untapped total abatement potential could reach up to 200 to 300 metric tons of CO 2 , enabled by its biodiversity and strong demand.

The Philippine economy: Three scenarios for growth

Having grown faster than other economies in Southeast Asia in 2023 to end the year with 5.6 percent growth, the Philippines can expect a similarly healthy growth outlook for 2024. Based on our analysis, there are three potential scenarios for the country’s growth. 33 McKinsey analysis in partnership with Oxford Economics.

Slower growth: The first scenario projects GDP growth of 4.8 percent if there are challenging conditions—such as declining trade and accelerated inflation—which could keep key policy rates high at about 6.5 percent and dampen private consumption, leading to slower long-term growth.

Soft landing: The second scenario projects GDP growth of 5.2 percent if inflation moderates and global conditions turn out to be largely favorable due to a stable investment environment and regional trade demand.

Accelerated growth: In the third scenario, GDP growth is projected to reach 6.1 percent if inflation slows and public policies accommodate aspects such as loosening key policy rates and offering incentive programs to boost productivity.

Focusing on factors that could unlock growth in its seven critical sectors and themes, while adapting to the macro-economic scenario that plays out, would allow the Philippines to materialize its growth potential in 2024 and take steps towards achieving longer-term, sustainable economic growth.

Jon Canto is a partner in McKinsey’s Manila office, where Frauke Renz is an associate partner, and Vicah Villanueva is a consultant.

The authors wish to thank Charlene Chua, Charlie del Rosario, Ryan delos Reyes, Debadrita Dhara, Evelyn C. Fong, Krzysztof Kwiatkowski, Frances Lee, Aaron Ong, and Liane Tan for their contributions to this article.

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