India needs to offer tax incentives, push health startups to make country global medical hub: Report
needs to offer
tax incentives for hospitals
treating international patients and promote startups in the health sector to make the country a global medical hub by 2035, said a report.
The 'Heal in India: Catalysing Medical and Wellness Tourism for a Healthier Global Future' report, released on Thursday, said that India's medical tourism market is expected to increase from USD 18.2 billion in 2025 to USD 58.2 billion by 2035, growing at an annual compounded rate of 12.3 per cent.
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The report launched by Federation of Hotel and Restaurant Associations of India (FHRAI), in collaboration with KPMG in India, also recommended the introduction of global branding campaigns by leveraging embassies, expos, and digital platforms and the launch of 'Heal in India' missions at the national and state levels.
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"To attract investment and improve service delivery, India should offer a mix of fiscal and non-fiscal incentives. These include tax exemptions for hospitals treating international patients, increased subsidies under the Marketing Development Assistance scheme, technical support for marketing and promotion, including on digital platforms, and 100 per cent FDI in broader medical infrastructure, including wellness centres," the report stated.
It further called for the introduction of targeted subsidies and grants for startups and organisations working in health-tech, medical research, and digital health solutions that directly support medical tourism.
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Notably, recommends enabling insurance portability by collaborating with international insurance providers to include Indian hospitals in their coverage networks, arguing that this could reduce financial barriers for foreign patients and make India a more viable destination for insured medical travellers.
The report also suggests addressing gaps in visa-insurance linkage, strengthening capacity building by training health facilitators and providers on global standards and multi-lingual hospitality.
"To reinforce India's leadership in global medical and wellness tourism, a structured mission should be initiated at both national and state levels, aligned with the National Strategy and Roadmap for Medical and Wellness Tourism," the report stated.
It recommended elevating the existing National Medical and Wellness Tourism Promotion Board into a comprehensive national mission that facilitates strategic policy execution and inter-ministerial coordination.
India ranks 10th in the Medical Tourism Index and 7th in Wellness Tourism, attracting nearly 2 million international patients from 75 countries.
Medical visa issuance by India rose to 4,63,725 in 2024, with the majority of patients from Bangladesh, GCC nations, and Africa.
The global medical tourism market, pegged at USD 41.75 billion in 2024, and wellness tourism (at USD 954.14 billion), are expected to double by 2030 and 2034, respectively.
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