Latest news with #FederationofHotelsandRestaurantsAssociationsofIndia

Business Standard

India needs tax breaks, startup push to lead global wellness tourism

India needs to offer tax incentives for hospitals treating international patients and promote startups in the health sector to make the country a global medical and wellness tourism hub by 2035, a joint report by KPMG and the Federation of Hotels and Restaurants Associations of India (FHRAI) has stated. 'To attract investment and improve service delivery, India should offer a mix of fiscal and non-fiscal incentives, such as tax exemptions, increased subsidies under the Market Development Assistance (MDA) scheme, and technical support for marketing and promotion including on digital platforms,' the report issued on Thursday said. It added that the introduction of targeted subsidies and grants for health startups and organisations working in health-tech, medical research and digital health solutions can directly support medical tourism. This comes after Finance Minister Nirmala Sitharaman, in her Budget speech earlier this year, outlined plans to promote medical tourism and the Heal in India initiative. This was to be achieved through collaboration with the private sector, capacity expansion and implementation of more accessible visa regulations. To support this vision, the report recommended the introduction of global branding campaigns by leveraging embassies, expos and digital platforms, along with the launch of Heal in India missions at the national and state levels. India's medical tourism market is projected to be worth approximately $18.2 billion in 2025, with estimates indicating a rise to $58.2 billion by 2035 at a compound annual growth rate (CAGR) of 12.3 per cent. At the same time, the number of medical visas issued by India rose to 463,725 in 2024–25 from 375,000 in 2019–20. To cater to this increased demand, the report recommended the initiation of structured missions at both national and state levels to reinforce India's leadership in global medical and wellness tourism. 'Initiatives such as Ayush and e-medical visas have enhanced patient mobility; however, the absence of insurance portability continues to pose barriers,' the report stated.