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Business Standard
4 days ago
- Business
- Business Standard
Bangladesh unrest cuts India's medical tourism revenue by up to 35%
Political unrest in Bangladesh, combined with the rise of a government seen as unfriendly to New Delhi and deteriorating bilateral ties, appears to have dealt a blow to India's medical tourism sector. Medical tourism revenues from Bangladeshi patients have reduced by 30–35 per cent in FY25. Typically, Bangladesh accounts for 70–75 per cent of the medical visas issued by India, analysts said. Anuj Sethi, Senior Director, Crisil Ratings, told Business Standard that 'Medical tourism revenues from patients in Bangladesh arriving in India for medical treatment is estimated to have reduced by around 30–35 per cent in fiscal 2025 due to regime change and political unrest in Bangladesh, mainly in the first half of the year.' Hospital majors such as Apollo Hospitals Enterprise and Manipal Hospitals took a hit in their FY25 revenue due to the drop in footfall from Bangladeshi patients who usually visit centres in eastern and southern India. Apollo saw a significant fall in revenues from Bangladeshi patients—from ₹80 crore last year to ₹30 crore in Q4FY25. Aashita Jain, analyst with Nuvama Institutional Equities, said the impact on Apollo's revenue was around 1.5 per cent in FY25, and around 2 per cent in Q4FY25. Manipal Hospitals too saw a major decline in patients from West Bengal and Bangladesh, dropping by nearly 75 per cent compared to previous years. 'Earlier, around 10,000 medical visas were being issued per month; however, this has now been reduced to only 800–900 priority medical visas. Additionally, 19 visa centres in Bangladesh have been closed by the Indian High Commission, further impacting patient inflow,' said Karthik Rajagopal, Group COO, Manipal Hospitals. The decline in Bangladeshi patients is significant, as 70–75 per cent of medical visas issued by India are to Bangladeshi nationals, ICRA highlighted. Mythri Macherla, Vice President and Sector Head, Corporate Sector Ratings, ICRA, said the proportion of revenues from international patients ranges between 3–9 per cent for most listed hospitals. In CY2024, overall medical tourist inflow to India dipped to 625,000 from 659,000 in CY2023. However, compared to 2022 (when 475,000 medical tourists visited India), the numbers are up 32 per cent, showed data available with the Bureau of Immigration. "There has been a drop and it has sustained for some time. The fourth quarter of FY25 witnessed the biggest drop that we have seen so far. We are continuing to see difficult cases like paediatric cancer patients from these countries, as they are getting medical visas to travel. However, a large number of patients certainly dropped off," said Madhu Sasidhar, President and Chief Executive Officer, Apollo Hospitals Enterprise (AHEL). Bangladesh has long been the largest source of medical tourists to India, with a 48 per cent year-on-year surge bringing 449,570 patients in 2023 alone. For the entire financial year, AHEL witnessed a drop of ₹100 crore in revenue from Bangladeshi patients. In FY24, the company's Bangladesh share of medical tourism was ₹320 crore, which dipped to around ₹220 crore in FY25. For Apollo, the share of international patients is around 6 per cent of its revenue. Sources said the industry is seeing a rise in patients from Africa and Southeast Asian countries such as Indonesia, Timor-Leste and the Philippines, in addition to advanced economies. Another industry source said Pakistani hospitals are now trying to woo Bangladeshi patients. However, there seems to be light at the end of the tunnel. As Sethi pointed out, 'Process of granting visas for medical tourism for patients from Bangladesh is gradually normalising and we expect the process will take 6–8 months in fiscal 2026 to revert to normalcy. Hence, revenues for private hospitals from medical tourists coming from Bangladesh will be impacted this fiscal too.' Footfall from other countries is also on the rise. "Despite the geopolitical tensions which led to a decline in footfalls from patients from Bangladesh, some listed hospitals reported improvement in international patient revenues in FY2025 led by higher footfalls from other countries and increasing ARPOB,' Macherla pointed out. For example, Max Healthcare saw a 28 per cent growth in revenue from international medical tourists in Q4 despite a fall in patients from Bangladesh. Bangladesh accounts for only 5 per cent of Max's international patients. Abhay Soi, Chairman and Managing Director, Max Healthcare, said in the post-results analysts' call that they have had more than 25 per cent growth in the international medical tourist business for a 'long period of time' and the 28 per cent growth is 'in spite of these bottlenecks'. Going forward, ICRA expects the proportion of international patient revenues to remain largely range-bound and expects the overall revenues from international patients to grow at a much slower pace as compared to overall revenues till the geopolitical tensions are resolved.
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Business Standard
28-04-2025
- Automotive
- Business Standard
PV industry to hit record 5 mn domestic, export units in FY26: Crisil
However, penetration of electric vehicles (EVs) is seen at a moderate 3-3.5 per cent despite new launches Press Trust of India New Delhi Passenger vehicle industry in India is expected to touch a record cumulative domestic and export volume of 5 million units this fiscal despite the annual growth rate slowing down to 2-4 per cent, according to Crisil Ratings. However, penetration of electric vehicles (EVs) is seen at a moderate 3-3.5 per cent despite new launches and declining battery costs due to high prices, modest charging infrastructure and range anxiety, restricting the market to urban users as a second car option, the insights-driven analytics firm said in a statement. The growth in the EV segment has slowed after doubling last year on a low base, it added. "India's passenger vehicle (PV) industry is set to scale a fresh high this fiscal with domestic and export volume cumulatively crossing 5 million units even as the annual growth rate slows to 2-4 per cent," Crisil Ratings said. This marks the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in fiscal 2023 after the pandemic, it added. The domestic market accounted for about 85 per cent of total volume last fiscal, with exports accounting for the rest, Crisil Ratings said. On the EV front, it said growth has slowed after doubling last year, but on a low base. The entry of global premium EV models, including Tesla would intensify competition in the premium segment, which accounts for less than 10 per cent of the overall volume, and will likely reset consumer expectations across categories, pushing Indian Original Equipment Manufacturer (OEMs) to accelerate technology upgrades, Crisil Ratings said. "That said, the current high tariffs will limit imports," it noted. Going ahead, the pace of interest rate cuts and EV adoption, as well as potential supply shocks could impact the availability of chips and battery cells amid global tensions, and will, therefore, bear watching, it added. "PV growth will moderate to 2-4 per cent this fiscal, but UVs (utility vehicles) will continue to cruise with around 10 per cent growth, supported by new launches. With UVs contributing 68-70 per cent of volumes and bulk of upcoming models, the shift toward premiumisation is structural," Crisil Ratings Senior Director, Anuj Sethi said. Rural recovery, expected from a likely above-normal monsoon and reduction in interest rates, should improve demand for entry-level cars, Sethi added. On the exports front, Crisil Ratings said growth is likely to moderate to 5-7 per cent in FY26, down by a third, amid global headwinds. "The 25 per cent US tariff, effective June 2025, poses limited risk as the US forms just about 1 per cent of total PV volumes," it said, adding OEMs can pivot to alternative markets such as Mexico, the Gulf countries, South Africa, and East Asia though ongoing geopolitical tensions could weigh on exports' momentum.
Time of India
26-04-2025
- Automotive
- Time of India
India's passenger vehicle volume to scale fresh high in FY26, utility cars to lead: Report
India's passenger vehicle (PV) industry is set to scale a fresh high this fiscal with domestic and export volume cumulatively crossing 5 million units even as the annual growth rate slows to 2-4 per cent, a report showed on Friday. A Crisil Ratings report said that this marks the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in fiscal 2023 after the pandemic. According to the report, utility vehicles (UVs) will drive volume growth this fiscal, aided by new launches, easing interest rates, rising compressed natural gas (CNG) adoption and rural tailwinds. 'PV growth will moderate to 2-4 per cent this fiscal, but UVs will continue to cruise with 10 per cent growth, supported by new launches. With UVs contributing 68-70 per cent of volumes and bulk of upcoming models, the shift toward premiumisation is structural,' said Anuj Sethi, Senior Director, Crisil Ratings. Rural recovery, expected from likely above-normal monsoon and reduction in interest rates, should improve demand for entry-level cars, he added. Healthy cash flows and robust cash surplus will enable original equipment manufacturers (OEMs) to fund their high capex comfortably, while keeping their balance sheets strong and credit profiles stable. The domestic market accounted for 85 per cent of total volume last fiscal, with exports accounting for the rest. Fuel mix is also evolving rapidly. CNG-powered PVs are gathering pace, with their share likely reaching 15 per cent this fiscal owing to low running costs and a fast-expanding network of 7,000+ refuelling stations. 'OEMs can pivot to alternative markets such as Mexico, the Gulf countries, South Africa, and east Asia though ongoing geopolitical tensions could weigh on exports' momentum,' the report suggested. 'PV capex is expected to stay elevated at Rs 30,000 crore this fiscal as OEMs ramp up capacity, accelerate EV investments, and push localisation and digital upgrades. However, this high capex remains sustainable, backed by strong internal accruals and cash surplus, with capex-to-Ebitda steady at 0.5x,' said Poonam Upadhyay, Director, Crisil Ratings. The entry of global premium EV models, including Tesla would intensify competition in the premium segment, which accounts for less than 10 per cent of the overall volume, and will likely reset consumer expectations across categories, pushing Indian OEMs to accelerate technology upgrades. That said, the current high tariffs will limit imports.
Time of India
25-04-2025
- Automotive
- Time of India
India's passenger vehicle volume to scale fresh high in FY26, utility cars to lead
India's passenger vehicle (PV) industry is set to scale a fresh high this fiscal with domestic and export volume cumulatively crossing 5 million units even as the annual growth rate slows to 2-4 per cent, a report showed on Friday. A Crisil Ratings report said that this marks the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in fiscal 2023 after the pandemic. According to the report, utility vehicles (UVs) will drive volume growth this fiscal, aided by new launches, easing interest rates, rising compressed natural gas (CNG) adoption and rural tailwinds. "PV growth will moderate to 2-4 per cent this fiscal, but UVs will continue to cruise with 10 per cent growth, supported by new launches. With UVs contributing 68-70 per cent of volumes and bulk of upcoming models, the shift toward premiumisation is structural," said Anuj Sethi, Senior Director, Crisil Ratings. Rural recovery, expected from likely above-normal monsoon and reduction in interest rates, should improve demand for entry-level cars, he added. Healthy cash flows and robust cash surplus will enable original equipment manufacturers (OEMs) to fund their high capex comfortably, while keeping their balance sheets strong and credit profiles stable. The domestic market accounted for 85 per cent of total volume last fiscal, with exports accounting for the rest. Fuel mix is also evolving rapidly. CNG-powered PVs are gathering pace, with their share likely reaching 15 per cent this fiscal owing to low running costs and a fast-expanding network of 7,000+ refuelling stations. "OEMs can pivot to alternative markets such as Mexico, the Gulf countries, South Africa, and east Asia though ongoing geopolitical tensions could weigh on exports' momentum," the report suggested. "PV capex is expected to stay elevated at Rs 30,000 crore this fiscal as OEMs ramp up capacity, accelerate EV investments, and push localisation and digital upgrades. However, this high capex remains sustainable, backed by strong internal accruals and cash surplus, with capex-to-Ebitda steady at 0.5x," said Poonam Upadhyay, Director, Crisil Ratings. The entry of global premium EV models, including Tesla would intensify competition in the premium segment, which accounts for less than 10 per cent of the overall volume, and will likely reset consumer expectations across categories, pushing Indian OEMs to accelerate technology upgrades. That said, the current high tariffs will limit imports
Hans India
25-04-2025
- Automotive
- Hans India
India's passenger vehicle volume to scale fresh high in FY26, utility cars to lead
India's passenger vehicle (PV) industry is set to scale a fresh high this fiscal with domestic and export volume cumulatively crossing 5 million units even as the annual growth rate slows to 2-4 per cent, a report showed on Friday. A Crisil Ratings report said that this marks the fourth consecutive year of record sales, although momentum has significantly eased from the 25 per cent surge in fiscal 2023 after the pandemic. According to the report, utility vehicles (UVs) will drive volume growth this fiscal, aided by new launches, easing interest rates, rising compressed natural gas (CNG) adoption and rural tailwinds. 'PV growth will moderate to 2-4 per cent this fiscal, but UVs will continue to cruise with 10 per cent growth, supported by new launches. With UVs contributing 68-70 per cent of volumes and bulk of upcoming models, the shift toward premiumisation is structural,' said Anuj Sethi, Senior Director, Crisil Ratings. Rural recovery, expected from likely above-normal monsoon and reduction in interest rates, should improve demand for entry-level cars, he added. Healthy cash flows and robust cash surplus will enable original equipment manufacturers (OEMs) to fund their high capex comfortably, while keeping their balance sheets strong and credit profiles stable. The domestic market accounted for 85 per cent of total volume last fiscal, with exports accounting for the rest. Fuel mix is also evolving rapidly. CNG-powered PVs are gathering pace, with their share likely reaching 15 per cent this fiscal owing to low running costs and a fast-expanding network of 7,000+ refuelling stations. 'OEMs can pivot to alternative markets such as Mexico, the Gulf countries, South Africa, and east Asia though ongoing geopolitical tensions could weigh on exports' momentum,' the report suggested. 'PV capex is expected to stay elevated at Rs 30,000 crore this fiscal as OEMs ramp up capacity, accelerate EV investments, and push localisation and digital upgrades. However, this high capex remains sustainable, backed by strong internal accruals and cash surplus, with capex-to-Ebitda steady at 0.5x,' said Poonam Upadhyay, Director, Crisil Ratings. The entry of global premium EV models, including Tesla would intensify competition in the premium segment, which accounts for less than 10 per cent of the overall volume, and will likely reset consumer expectations across categories, pushing Indian OEMs to accelerate technology upgrades. That said, the current high tariffs will limit imports.
