Medical value travel in India is reshaping with the emergence of advanced healthcare facilities in tier-II and tier-III cities. While Chennai, Mumbai, Delhi, Hyderabad, Kolkata, and Bangalore are the medical tourism hotspots in India, thousands of foreign patients also flock to Kochi, Trivandrum, Coimbatore, Vishakhapatnam, Ahmedabad, Jaipur, Chandigarh, Pune, Nashik, etc. for cost-effective and quality treatments.
Medical tourism in India is currently valued at $5-6 billion and is expected to touch $13 Billion by 2027 (FICCI). India ranks third in medical tourism in Asia and 10th among 46 medical tourism destinations as per MTI 2020-21.
According to the Union Ministry of Tourism, 1.4 million medical tourists visited India in 2022. CRISIL, a premium credit rating agency projects the number to touch 7.3 million in the calendar year 2024, up from the 2023 estimation of 6.1 million.
Tier II and Tier III cities are expected to play a critical role with their unique propositions of healthcare excellence and affordability integrated with ample opportunities for wellness healing and rejuvenation. These cities are poised to redefine India’s global reputation in medical tourism with world-class care beyond major metros. Let us delve deeper.
Emerging Healthcare Excellence and Wellness Opportunities in Tier-II and Tier-III Cities
Leading hospital groups like Apollo, MAX, and Fortis are seizing opportunities in tier-II and tier-III cities, strategically investing in state-of-the-art facilities. Their presence has fostered a thriving ecosystem of specialty procedures, such as dental implants and cosmetic surgeries, highly sought-after treatments by foreign and local patients. These emerging hubs offer patients quality care at significantly lower costs than in larger cities.
Cities like Kochi, Trivandrum, Pune, Shimla, and Chandigarh provide easy access to wellness activities in premium wellness resorts where patients do not have to take arduous journeys to relax and rejuvenate before or after treatment or surgery.
Less crowded facilities and comparably easy access to natural settings add to the convenience of medical tourists fostering a holistic healing ecosystem. Their proximity to airports also adds to the convenience factor.
Sensing the potential, the government of India has taken an interest in developing the local infrastructure inviting key investors in healthcare and hospitality. Medical clusters are coming up around these hospitals offering comprehensive healthcare solutions.
With integrated medical wellness gaining traction in medical tourism, such initiatives from the public and private sectors contribute to streamlined patient experience, personalized holistic care and well-being, shorter waiting times, and improved outcomes.
Additionally, these healthcare facilities emphasize multidisciplinary expertise and cutting-edge technology ensuring world-class service standards. This unique convergence of affordability, excellence, accessibility, and wellness opportunities in tier II and tier III cities has been contributing to medical value travel in India.
Government Funding and Accreditation Programs Boosting MVT in India
The government of India’s $14.8 Billion loan initiative for healthcare and tourism organizations has further opened opportunities for Indian MVT growth. This massive investment provides a safety net and funding for quality upliftment helping healthcare facilities modernize their service delivery through strategic measures.
The government has emphasized the importance of accreditation in medical tourism. It boosts international credibility. Apart from JCI accreditation, the National Accreditation Board for Hospitals and Healthcare Providers (NABH), recognized by ISQua (the International Society for Quality in Health Care), with stringent quality standards has significantly enhanced the credibility of India’s healthcare facilities.
Most importantly, healthcare facilities in Tier II and Tier III cities are also bagging JCI and NABH accreditation establishing their credibility and high standard of care and service. Presently, India is home to 54 JCI-accredited hospitals and 1299 NABH-accredited hospitals.
The NABH also runs the Ayush Accreditation Program for AYUSH Hospitals and centers providing comprehensive quality assurance standards for Ayurveda, Yoga, Unani, Siddha, Homeopathy and Naturopathy treatments in Ayurveda, Panchakarma, and Homeopathy Clinics and hospitals across India.
This exclusive accreditation under NABH supervision has boosted the credibility of Ayurvedic medical tourism and wellness tourism, the fast-growing niches in India. A 2024 report from NirogStreet reveals India’s ayurvedic market is poised to touch 1.2 Trillion INR or $16.27 billion by FY 2028 from the current 57,450 Crore INR or $7 Billion. AYUSH accreditation will boost patient confidence and trust in proven alternative treatments without the risk of any potential health hazard.
Medical tourism malpractices tarnish destination image. To curb this, NABH has extended accreditation to medical value travel facilitators for transparent, ethical, and patient-centric services. Medical tourists can reach out to accredited facilitators for a seamless experience from choosing the facility, and specialists to follow-up care. It facilitates a sustainable and trustworthy ecosystem ensuring patients high quality and affordable care positioning India as a global leader in medical tourism.
However, the authorities should ensure a simplified and less expensive accreditation procedures else it may impact the patient experience. Enhanced focus on medical tourism training for capacity building can help in the fast reputation building of a destination.
Support for Providers: Market Development Assistance (MDA) Scheme
The MDA scheme from the Ministry of Tourism has been repurposed to strengthen domestic tourism, extending support for medical tourism providers. The revised guidelines enhance financial support to medical tourism stakeholders enabling them to participate in international events, roadshows, exhibitions, and marketing campaigns targeting new markets.
Through the expanded reach of the scheme, stakeholders can reap maximum benefits and boost India’s medical value travel market. Healthcare facilities, medical tourism facilitators, and travel companies can showcase their services globally through impactful activities.
While the exact figures are not yet available, initial reports reveal million-dollar funding in medical tourism through the MDA scheme empowering providers to have a competitive edge in the global market with state-of-the-art services and attractive prices.
The scheme has helped medical tourism stakeholders establish a comprehensive support system or concierge services to cater to diverse patient needs. This has led to a robust integrated medical and wellness tourism ecosystem further strengthening India’s position as a premium medical tourism destination for quality, affordability, and holistic well-being.
Key Challenges for Medical Tourism in Tier II and Tier III Cities
Despite rapid advancements, Tier II and Tier III cities have their unique challenges. Infrastructure development though in progress remains a concern, especially in maintaining state-of-the-art facilities and implementing cutting-edge technology.
Trust and quality are two major decision-influencing factors in medical tourism. While the tier II and tier III cities are developing fast, their brand reputation is emerging. These destinations face a shortage of skilled manpower as the cream of talents gravitates toward tier-I cities with higher growth opportunities.
They lack enough incentives to support tier II and tier III facilities unless supported by a reputed brand. Additionally, the lack of patient-friendly accommodations demanding specialized infrastructure and multilingual support creates significant obstacles to seamless patient experiences. Fortunately, cities witnessing higher tourist footfalls have international airports facilitating smoother travel logistics for medical tourists.
Only investment in healthcare facilities will not address these challenges. Significant collaborations between healthcare providers, hospitality players, government authorities, and other stakeholders could pave the way for more accessible and world-class medical tourism hubs to accommodate medical tourists seeking quality care and rejuvenating healing.
Including Tier II and Tier III Cities in the National Medical Tourism Strategy
The National Medical Tourism Strategy should focus more on tier II and tier III cities to reduce the burden on metro cities ensuring even distribution of resources and healthcare services in the country. Such an approach will benefit domestic and international patients seeking quality and convenience in a less congested enviornment.
Cities like Kochi, Uttarakhand, Pune, Nashik, Goa, and Shimla are well-known wellness tourism destinations attracting significant foreign tourists around the year. With an existing foundation to offer holistic medical tourism experiences, planned infrastructure will provide the required impetus.
Strategies for Medical Tourism Providers to Thrive
Tier II and Tier III cities need stronger pull factors for thriving medical tourism which can be achieved through the following strategies.
Accreditation Pursuits
Strive for more NABH and JCI accreditations to enhance credibility. These international standards give patients confidence in the quality and safety of healthcare services, positioning the provider as a trusted leader in the industry.
Comprehensive Support Systems
Develop comprehensive support systems with multilingual staff and personalized care coordinators. These support structures ensure a seamless patient journey from initial contact to post-treatment, offering holistic services that cater to cultural needs.
Capacity Building
Build capacity through specialized expert-led training programs. Focus on enhancing skills in patient care, communication, global healthcare standards, medical wellness integration, cultural competency, and other intricacies of medical tourism to meet the needs of diverse international patients.
Focus on Niches
Building niche specialties could be the key differentiator for Tier II and Tier III cities. Specialties in IVF treatments, Aesthetic medicine, Orthopedics, or rehabilitation services will attract specific target markets. With competitive packaging and pricing, tier II and Tier III facilities can be great winners. Patients will find these facilities more approachable, affordable, and accessible than those in Tier I cities.
Integrated Marketing Approach
Implement targeted marketing emphasizing medical and wellness benefits, appealing to a broader audience seeking holistic healthcare experiences. Showcase the unique treatments and rejuvenating environments that can improve patient outcomes.
While India’s leading metros dominate the medical tourism spotlight, tier-II and tier-III cities are catching up with advanced infrastructure. These smaller hubs relieve resource constraints in overcrowded metros, while the growing demand for advanced care among rising affluent populations fuels opportunities. This trend is gaining momentum but has yet to reach its full potential.
