India’s thriving medical tourism sector, which heavily relies on Bangladeshi visitors, may see a significant decline in footfalls due to ongoing political instability in Bangladesh, according to a report by CareEdge Ratings. The rating agency anticipates a potential drop of 10-15% in medical tourists from Bangladesh in 2024 if the unrest persists.
Historically, Bangladesh has been a major contributor to India’s international medical tourism inflow, accounting for 50-60% of the total medical tourists. However, the current instability in Bangladesh has led to numerous cancellations and postponements of trips to India, the report asserts.
India’s healthcare system is globally renowned, attracting medical tourists with its combination of competitive treatment costs, high-quality medical services, and relatively short waiting times. This has helped India secure a place among the top 10 countries for medical tourism worldwide, particularly favoured by patients from South Asia, Africa, and the Middle East.
“Nearly 70-80% of medical tourists arriving in India are from Bangladesh and Middle Eastern countries,” noted CareEdge Ratings. Bangladesh, in particular, stands out as the leading source of medical tourists, surpassing countries like the Maldives, Myanmar, Sri Lanka, Pakistan, and even Middle Eastern nations. Cultural and linguistic similarities, coupled with advanced medical facilities and competitive prices, have made India an attractive destination for Bangladeshi patients.
Despite the current downturn, CareEdge Ratings remains cautiously optimistic. While the report acknowledges the risk posed by the instability in Bangladesh, it predicts only a minimal long-term impact on the sector. CareEdge expects footfalls to gradually return to normalcy by the end of 2024, helping mitigate the decline.
In 2023, international medical tourism to India increased by approximately 33% year-on-year. This marked a significant recovery after the COVID-19 pandemic caused a sharp decline in 2020. Though 2021 saw some recovery, the pandemic continued to affect the industry due to lingering travel restrictions. By 2022, however, medical tourism had nearly returned to pre-pandemic levels, and the positive trend extended into 2023.
India’s recent initiatives to expand the e-medical visa facility to nationals from multiple countries are expected to further bolster the sector in the coming years. With these efforts, the country hopes to continue its growth trajectory despite the challenges posed by regional instability.
