India’s medical tourism industry was worth more than Rs 87,000 crores in 2024, and the country is one of the world’s top 10 destinations. Experts hope that the forthcoming budget will further consolidate this by making the visa process easier and providing tax benefits to international patients.
Behram Khodaiji, CEO of Ruby Hall Clinic, Pune, said that while the country should bolster health infrastructure through public-private partnerships to attract more visitors, the budget should also reduce the burdens on healthcare providers. This could be done by a reduction in GST on medical equipment and consumables. “…hospitals would be motivated to use more advanced technologies”, he said.
Other experts talk about specific technologies that the budget should support, including genetic testing, which would allow for more precise treatment and reduce the cost burden on patients.
Surajit Chakrabartty, CFO of MedGenome, said, “Early detection allows patients to receive the correct care at the right time, minimising the often-devastating effects of delayed treatment”.
This can also be especially effective in prenatal testing, where genetic disorders of the foetus can be identified, allowing couples to make informed decisions and also allowing for preventive measures.
One overriding concern is increasing the outlay for health in the budget. In 2024-25, the Ministry for Health and Family Welfare got 1.9 per cent of the country’s GDP in budgetary allocation. This is much below the 2.5 per cent suggested by the National Health Policy of 2017.
Gautam Khanna, the CEO of the P.D. Hinduja Hospital and Medical Research Centre, Mumbai, said, “We look forward to the possibility of an increased allocation to the tune of 2.5 per cent to 3 per cent for the healthcare sector.”
This will help make critical additions to infrastructure, especially in tier-two and tier-three cities, besides strengthening primary care through expanded public health centres and expansion of medical education to address the shortage of medical professionals.
The last is a grave concern, with a recent government report pointing out that there is an 80 per cent shortage of specialist doctors in rural areas.
One way to enhance investment in facilities, equipment, and training is to issue long-term credit against the current seven to eight-year term credit and with lower interest rates. Tax holidays for greenfield healthcare projects, akin to those for SEZs and tech parks, would also drive private investment in the sector.