Bangladesh crisis may reduce medical tourism to India by 10-15% in 2024: report
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A recent report warns that ongoing socio-political unrest in Bangladesh could lead to a 10-15% decline in medical tourism from the country to India in 2024.
Bangladesh, which accounts for 50-60% of India’s total medical tourism inflow, is the largest source of medical tourists among neighboring nations.
The turbulence in Bangladesh has already begun to affect the flow of patients, with many postponing or canceling their medical trips to India, according to an analysis by CareEdge Ratings. If the situation persists, the number of Bangladeshi patients seeking treatment in India could significantly decrease next year.
Medical tourism contributes 3-5% to India’s overall hospital sector. Despite the anticipated drop from Bangladesh, the sector is expected to experience minimal impact overall, with a gradual recovery expected by the end of 2024.
However, the impact will vary across hospitals depending on their reliance on Bangladeshi medical tourists. Facilities heavily dependent on these patients may see revenue declines in the second and third quarters of FY25, while larger, multi-location hospitals in India are likely to be less affected, supported by strong financial resilience and robust cash reserves.
India’s medical tourism sector has been steadily growing due to the country’s relatively low-cost surgeries, high-quality critical care, advanced medical technology, and the expanding e-medical visa program. After a dip during the COVID-19 pandemic, the sector saw a strong recovery in 2022, nearly reaching pre-pandemic levels and continuing to grow in 2023, with a 33% year-on-year increase.
The Indian government’s initiative to extend e-medical visa facilities to nationals from 167 countries is expected to further boost medical tourism in the coming years, particularly benefiting hospitals in metropolitan areas.
Nearly 70-80% of medical tourists to India come from Bangladesh and Middle Eastern countries.
India ranks among the top 10 global destinations for medical tourism, with a strong preference among patients from South Asia, Africa, and the Middle East. Bangladesh remains the leading contributor to this industry, surpassing countries like the Middle East, Myanmar, Maldives, Sri Lanka, and Pakistan.
In FY23, the Indian hospital industry was valued at approximately Rs 5.8 lakh crore, with an expected annual growth rate of 12% over the next three years. Each year, an estimated 3 to 3.5 lakh Bangladeshi nationals seek medical treatment in India, underscoring the significance of this market.
