India is rapidly strengthening its position as a leading destination for medical tourism, supported by affordable treatment costs, improving healthcare infrastructure and favourable government policies, according to a report by Antique Stock Broking.
The report, titled India Hospitals: Scaling Capacity to Meet Rising Healthcare Demand, highlighted that the country’s healthcare sector is witnessing robust growth amid rising demand, increasing insurance penetration and significant expansion by private hospital operators.
According to the report, “India has rapidly emerged (10th rank in Medical Tourism Index) as one of the leading destinations for medical tourism.” The report noted that international patients are increasingly choosing India for advanced medical care due to the availability of quality treatment at comparatively much lower costs.
It further stated that “Cost-effective treatment options, often at a fraction of the prices charged in developed countries, attract a significant number of international patients seeking high-quality yet affordable care.”
The report observed that India’s growing appeal as a healthcare destination is being supported by policy measures and investments aimed at improving healthcare delivery. It added that “The government’s proactive policies, streamlined visa procedures for medical travellers, and investments in healthcare infrastructure further enhance India’s competitiveness in this space.”
The broader healthcare delivery market in India is also expected to witness strong growth over the coming years. Antique estimates that the healthcare delivery market will expand at a healthy 10-12 per cent compound annual growth rate (CAGR), reaching about Rs 12 trillion by FY30.
The report said private healthcare providers are expected to play an increasingly important role in meeting the country’s healthcare needs. The share of treatments delivered by private providers is projected to rise from 64 per cent in FY20 to around 69 per cent by FY30.
It noted that major hospital operators have significantly expanded their capacity in recent years. Between FY23 and FY26, 15 hospitals covered in the report added around 19,000 beds, taking their combined bed capacity to over 70,000 beds. The report projects that these hospitals will further expand capacity by 54 per cent between FY26 and FY30, taking total bed strength to more than 108,000 beds.
According to Antique, most of the planned expansion will be through brownfield projects, which account for 63 per cent of the upcoming capacity additions. This is expected to support faster breakeven timelines and improve returns on capital employed.
The report also highlighted that fears of oversupply in the hospital sector remain limited despite the aggressive expansion plans. Rising insurance penetration, government healthcare schemes such as Ayushman Bharat and PM-JAY, and increasing market share gains by organised healthcare providers are expected to support demand growth.
Antique remains positive on the hospital sector, citing strong long-term demand visibility, improving operational efficiencies, healthy balance sheets and favourable regulatory developments. The report said established hospital chains with strong brands, multi-specialty capabilities and scalable operating models are well-positioned to benefit from rising healthcare spending and growing international patient inflows.
