Economics behind Medical Tourism

 

Medical Tourism in India and the Economics behind it

For many people around the world, accessing quality healthcare can be a challenge—whether due to high costs, long waiting periods, or limited availability of advanced treatments. In search of better options, thousands of patients turn to India, a country that has rapidly gained recognition as a global medical tourism hub.

However, medical tourism is more than just a healthcare alternative; it is a booming industry that plays a vital role in India’s economy. The sector is supported by an extensive network that includes private hospitals, government initiatives, and specialized travel services catering to international patients. This thriving ecosystem not only benefits foreign visitors but also contributes to create jobs and facilitate economic growth within the country.



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.

Several factors contribute to India's appeal as a medical tourism destination. “Firstly, the cost of treatment in India is significantly lower compared to Western countries, without compromising on quality.” "Secondly, India boasts high standard hospitals and medical infrastructure that adhere to international standards.”

A good proportion of people also come from so-called bubbled countries like the USA, UK and Australia. Statistical data suggests that in 2019 alone, about 697,453 foreign tourists came to India for medical treatment. As per the latest FICCI report, the country was expected to touch the capacity of $9 billion by the end of 2020 in terms of Medical Value Travel (MVT) market.



 Beyond economic considerations, medical tourism serves as a catalyst for enhancing diplomatic relations between countries. This exchange of experiences and interactions can foster greater understanding and goodwill between nations, paving the way for strengthened diplomatic ties.

Support to the sector in the form of incentives and new schemes will go a long way in helping the sector recover post the pandemic. The industry needs tax incentives, relaxation on duty or reduction in duty for import of medical equipment, developing infrastructure especially transportation and cooperation amongst all key stakeholders both public and private.

REFERENCES:

https://m.economictimes.com/news/how-to/whats-medical-tourism-how-it-can-help-indian-economy-trends-and-challenges/articleshow/108643990.cms

http://iipa.org.in/cms/public/uploads/522031635499677.pdf


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