1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
141
‘HEALTH IS WEALTH’: MEDICAL TOURISM INDUSTRY IN INDIA - THE
NEW REVENUE GENERATOR
Prof. SHRADDHA CHOWDHARY
Professor, Department of Business Management, Kasturba Gandhi College, Secunderabad, INDIA,
ABSTRACT
We have all grown up hearing “Health is Wealth” but today the same preaching holds good
as the Health Industry in India witnesses enormous growth and has become a big revenue generator
thus attempting to create wealth for the nation especially during the times when the dollar is
overpowering the rupee. The cost effectiveness of medical treatments in India without a compromise
on the quality & standards has led to the growth of Medical or Health Tourism industry in the
Country. India has long been known all over the world for the best medical and healing solutions,
this has contributed to large inflow of foreign medical tourists to India to explore the fast and
convenient Health Tourism services. It has been a tradition in India to consider guests as incarnations
of God (atithi devo bhava) and are given prime importance, so the treatment offered to such tourists
is definitely par excellence. Indian Medical Tourism aims to help tourists who visit India for any
kind of medical treatment, be it organ transplant, dental treatment, implants, joint replacements or
surgeries by organizing hassle free health travel and health treatment for them. India has always had
well qualified, competent doctors in each and every specialization, and this fact has now been
realized world over. India’s world class Medical Facilities with most competitive charges for
treatments, has made India a very lucrative destination for people wanting to undergo treatment for
any ailment. This Paper attempts to study the factors that have initiated the growth of Medical
Tourism in India and what needs to be done to over come the obstacles faced by this Industry in
order to keep this industry growing in the years to come so as to make Health a contributor to Wealth
in India.
Medical Treatment in USA / Europe
=
A Leisure holiday to India
+
Advanced Medical Treatment
+
Huge Savings
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 4, Issue 4, July-August (2013), pp. 141-148
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2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
142
Key Words: Health/Medical Tourism, Wellness tourism, Tourism, Alternate Medicine
I. INTRODUCTION
The number of Foreign Tourists Arrivals (FTA’s) to India has been on the rise over the years. It was
2.37 million in 1997, whereas in 2012 this figure of FTA’s rose to 6.58 million. The Foreign Exchange
Earnings (In US $ million) from Tourism in India increased from 2889 in 1997 to 17737 in 2012. Tourism
in India has been a very good revenue generator over the years. The Foreign Exchange Earnings (FEE)
increased from 10511 Crores in 1997 to 94487 Crores in 2012. The number of Foreign Tourist Visits to
Indian States and UT’s increased from 5.50 Mn in 1997 to 20.73 Mn in 2012. With the current
appreciation of US Dollar, the inflow of Dollars into our economy in the form of Tourism will result in
being very beneficial for the growth of our Economy. Tourism Industry as a whole and Medical Tourism
in particular will prove to be a good revenue generator in times to come.
II. MEDICAL TOURISM
Medical Tourism can be broadly defined as provision of cost effective private medical care in
collaboration with the tourism industry or patients needing surgical or other forms of treatment which
requires specialized means. Now-a-days medical treatment with vacation is on the rise, tourists prefer to
combine leisure with medical treatments.
Stages in Medical Tourism: The flow of activities in Medical Tourism is in a regular pattern which can
be categorized as Pre, Actual and Post Procedure stage. The factors considered in each of these stages are
as follows:
Pre Procedure Stage: In this first stage the tourist is typically engaged in navigating the process
and arriving at a decision to buy the procedure. However, given the complexity many customers
prefer to use services of a medical intermediary, which could be an individual or company who is
supposed to seamlessly coordinate the outbound medical tourism programme. Medical
facilitators are intermediaries that guide the use of medical tourism for patients and makes the
services more convenient and much quicker than the tourist organising these on his/her own.
They offer single window solutions to the customers. Long before the actual medical procedure/
treatment, a customer must decide about a number of important factors, like the choice of medical
intermediary, which hospital to be treated in, the doctors, which country to go to for obtaining

3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
143
treatment, costs to be incurred, risks involved, etc. not in the same order though. Pre procedure
stage typically ends with patient reaching the destination.
Procedure Stage: This is the key component of the medical tourism value chain. Procedure stage
begins with patient reaching the destination and hospitals/ service providers offering pickup
facilities followed by pre-counselling for treatment, necessary medical examinations required
before the medical procedure. Medical procedure includes preparing for the procedure,
organising a doctor and para medical team, planning the time of the procedure, operating theatre,
prosthesis, medical supplies needed, and the procedure itself.
Post Procedure Stage: Post procedure stage has two important components the post operative
care and follow-up care. Follow-up care usually includes visits of Doctors and monitoring for any
possible complications, getting back to normal in the Hospital, the various physical therapies
involved, medical supplies, meals, post operative recuperation in destination country but outside
the hospitals, etc. A medical Tourist is concerned about the follow up care facilities long after
they have left the country of treatment. Normally there is a tie-up between the medical service
providers and doctors in the patient’s country who are responsible for follow up on behalf of the
service provider. After the post operative care when the tourist is fit to move around, he/ she may
demand post treatment leisure as a part of the package.
III. MEDICAL TOURISM IN INDIA
"The one land that all men desire to see and having seen once, by even a glimpse, would not give the
glimpse for all the shows of all the rest of the globe combined" - Mark Twain for India
Medical/ Health/ Wellness Tourism is a developing concept whereby people from around the
world visit India for their medical and recreational needs. Common treatments which people fly to India
for are heart surgery, cosmetic procedures, hip and knee replacements, and dental treatments. India is
considered as a favourable destination because of its infrastructure and technology which is at par with that
of developed countries like America, England and Europe.
India has been listed as a favourable destination by leading consultant McKinsey which revealed
that medical tourism in India could become a US $2 billion industry by 2012 (from US $350 million in
2006). Similarly, a study by Credit Suisse, FICCI-Ernst and Young, estimated medical tourism to be
growing at 25-30% annually primarily due to: the low treatment cost in India (20 % of the average cost
incurred in the US, Singapore, Thailand and South Africa); rising consumerism; globalization and
changing lifestyles (AHEL, 2009). Factors such as low cost, advanced technology, efficient post
operative care provided in the country adds to its attractiveness as a medical tourism destination.
A. BENEFITS OF MEDICAL TOURISM IN INDIA
Cost –The most important factor which a Person focuses on for medical tourism is “Cost”. By getting
treated in India tourists save a considerable amount on medical treatments.
Anonymity - Some individuals like the fact that they can go on "vacation," and keep their identity
confidential back home if needed based on the kind of surgery or procedure required.
Value Added Vacation - Patients can enjoy tourism as a part of medical treatment.
No Wait Times - Many patients in developed countries with national healthcare face long wait times for
surgeries, where as medical tourism in India, helps patients to bypass long wait times.
India has over 1 lakh of skilled physicians and nurses and medical practitioners. The economic
boom in India over the last two decades has led to the building of medical facilities & infrastructure
comparable and sometimes even better than the western counterparts. A large number of Doctors
practicing in these hospitals and clinics have returned to India leaving behind successful practices in U.S.

4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
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and Europe. With the highest levels of service, facilities, and professional skills India is considered as a
mainstream option for surgeries and treatments for any kind of medical complexities, whereas, other
countries are considered a good destination only for small, less-complicated surgeries. A complicated
transplant or bypass procedure can be achieved for a tiny fraction of the cost as compared to the same
procedure in the U.S.
YEAR No of FTA's % Change from
Previous Year
Foreign Exchange Earnings
(In US $ Mn)
% Change from
Previous Year
2008 5.28 4 11832 10.3
2009 5.17 -2.2 11136 -5.9
2010 5.78 11.8 14193 27.5
2011 6.31 9.2 16564 16.7
2012 6.58 4.3 17737 7.1
Source: Ministry of Tourism.
B. COMPETITIVE ADVANTAGE: INDIA
The source of competitive advantage for India arises from the skillful use of its core
competencies that are used to gain a competitive advantage against rivals in the global market. Various
factors have added to the competitive advantage and has led to the recent increase in popularity of
healthcare tourism in India. Certain factors of the Healthcare Industry in India which helps it to standout
in comparison to other Countries are:
Affordability: India offers world-class healthcare that costs substantially much less than those in
countries which are more developed than India and with the use of similar technology as used
by competent medical-care specialists of developed nations. India is now being recognized
world over for possessing skilled medical practitioners in almost every field of medicine.
Because of these reasons India is now considered a great option for Medical Tourism for cost
effectiveness, a skilled team of Doctors and the availability of advanced medical technology.
Medical Cost Comparison between India and United States
Procedure United States (USD) Approx India (USD) Approx
Bone Marrow Transplant USD 2,50,000 USD 69,200
Liver Transplant USD 3,00,000 USD 69,350
Heart Surgery USD 30,000 USD 8,700
Orthopedic Surgery USD 20,000 USD 6,300
Cataract Surgery USD 2,000 USD 1,350
Smile Designing USD 8,000 USD 1,100
Metal Free Bridge USD 5,500 USD 600
Dental Implants USD 3,500 USD 900
Porcelain Metal Bridge USD 3,000 USD 600
Porcelain Metal Crown USD 1,000 USD 100
Tooth Impactions USD 2,000 USD 125
Root Canal Treatment USD 1,000 USD 110
Tooth Whitening USD 800 USD 125
Tooth Colored Composite USD 500 USD 30
Fillings / Tooth Cleaning USD 300 USD 90
Source: India Travel Destination by Beachcomber Tours & Travel India Pvt Ltd

5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
Volume 4, Issue 4, July-August (2013)
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Medical Cost Comparison between India and United Kingdom
Procedure United Kingdom (USD) Approx India (USD) Approx
Open Heart Surgery USD 18,000 USD 4,800
Cranio-Facial surgery and skull base USD 13,000 USD 4,500
Neuro- surgery with Hypothermia USD 21,000 USD 6,800
Complex spine surgery with implants USD 13,000 USD 4,600
Simple Spine Surgery USD 6,500 USD 2,300
Simple Brain Tumor -Biopsy -
Surgery
USD 4,300 $ 10,000 USD 1,200 $ 4,600
Hip Replacement USD 13,000 USD 4,500
Source: India Travel Destination by Beachcomber Tours & Travel India Pvt Ltd
There is no compromise on quality in the medical services provided in India and also this World
class quality can be achieved at a third World price. The costs of medical treatment in India comes at
only 1/10th
of the total cost of treatment in the developed Countries. The cost of recreational facilities like
traveling, sight-seeing, shopping etc are also very low in India and now with devaluation of the rupee its
even more affordable. India has also gained popularity in fields like Dentistry, cosmetic surgery, joint
care, cardiac care etc. India is known for its Hospitality and the foreign currency exchange procedures are
also simplified for the medical tourists.
Resource Availability: Indian medical education churns out around 30,000 doctors and nurses
every year adding to the existing pool of over 14 lakh medical fraternity. Over a dozen corporate
hospitals provide world class treatments across all specialties. There are over 15,000 hospitals
and 870,000 hospital beds that gives adequate infrastructure support to the medical tourists
visiting India for health services.
Reputation: India has a large number of hospitals offering world class treatments in almost
every medical sphere ranging from cardiology, cardiothoracic surgery, hip and knee
replacement, other orthopedic surgery, ophthalmology, gastroenterology, transplants to urology.
It also offers specialized treatments under oncology, neurology, neurosurgery, ophthalmology,
endocrinology, ENT, rheumatology, pediatric surgery, pediatric neurology, nephrology,
urology, dentistry, dermatology, gynecology, plastic surgery, psychiatry, pulmonology, general
medicine & general surgery. The success rate of treatment in each of these areas also has been
pretty good, because of this reliability factor the number of foreigners coming to India for
medical purposes has increased over the years.
Alternative forms of Medicine: Alternative medicine is any practice that is put forward as
having the healing effects of medicine but is not based on evidence gathered using the scientific
method. Kerala for ayurveda and Kairali massage, Uttarakhand for yoga and meditation, Goa
for holistic living, Rajasthan for spas and heritage living, are some of the world-renowned
places in India for alternative medicine. The various forms of Alternative therapies followed in
India which have gained popularity world over are:
Ayurveda Therapy: Ayurveda which is over 5,000 years old is believed to completely cure
illness that cause imbalance in the human body. Ayurveda makes use of simple treatment
procedures like meditation, nutrition counseling, massage, natural medications made with
herbs and similar kinds of methods.
Naturopathy: Naturopathy is a mix of various kinds of natural therapies and other such
healing methods. These procedures have been carried over generations and are based on the
knowledge of the ancient and modern science. It is believed that natural healing comes from

6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
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within the body itself as the main cause of every disease is a violation of the law of nature
and hence cure too can be found within nature.
Homeopathy: Homeopathy is a medical system which puts into use extremely small doses
of natural substances (remedies) in order to bring in stimulation in the immunity system of
the patient. There are certain symptoms which are addressed by homeopaths in infants and
other kinds of birth or childhood diseases, apart from fatigue, allergies, infections, and
chronic illnesses like asthma and arthritis.
Unani Therapy: In Unani treatments plants and herbs are used to cure ailments. It offers cure
for a number of diseases like jaundice, elephantiasis, sinusitus, leucoderma, rheumatism, etc.
Yoga and Meditation Therapy: Yoga has been derived from Sanskrit word 'Yuj' that means
'to unite', it is the unity of the mind, body and the soul. Meditation and Yoga are known as a
great way of achieving enlightenment and also one of most well-known widely practiced
form of alternative therapies all over the world. All kinds of diseases both physical and
mental are cured with Yoga. One can avoid numerous troubles like hypertension, irritable
bowel syndrome, diabetes, hyperventilation, heart conditions and many more through the
regualr practice of yoga nad pranayam.
Diversity of Destinations: Leisure tourism is already very much in demand in India as the country
offers diverse cultural and picturesque beauty. India caters to the likes of almost all tourists with its
high mountain ranges, beautiful beaches, places of historic importance, religious places etc, and is
also recognized world-wide for its hospitality. India being a subcontinent is home to many
cultures, languages, delectable cuisines, people, religions etc, which is spread across its length and
breadth. A medical tourist can plan a recreational tour of this historic country before or/and after
the medical procedure.
Promptness: In many countries, such as the UK and US where the flow of patients is very high,
patients are made to wait for long in order to obtain medical treatment. In India, as guests are given
utmost importance, they can have access to medical treatment with much more ease and in much
lesser time. It is the shorter time lags involved with medical treatment in India that acts as a major
competitive advantage.
C. THREATS TO MEDICAL TOURISM IN INDIA
Most of the foreigners who are treated in India hail from countries in Asia, Africa or the Middle
East, where there is a scarcity of top-quality hospitals and health professionals. Though patients from the
US and Europe still are relatively rare not only because of the distance they must travel but as hospital
executives acknowledge, it is also due to India continues to suffer from an image of poverty and poor
hygiene that discourages many patients. The following are some of challenges of fast pacing medical
industry in India:
Lack of initiative: The Government of India has not taken much initiative to promote Indian
Medical Tourism globally. The investment made in the Health care segment also has not been
adequate. India still has not been able to reach it’s full potential in this Industry in spite of being
world renowned for the services it has to offer.
Poor Coordination: The various operators in this Industry are Hospitals, Airlines and Hotels do
not coordinate their activities according to the needs of Medical tourists. Even if there are many
tourists wanting to come to India for purposes of leisure and medical treatment there are either no
proper tickets available or not enough hospital beds or lack of proper facilities in Hotels.
Perception about our Country: Tourists perceive India as unhygienic with poor sanitation and
drainage system. Basic amenities such as drinking water, waiting rooms and toilets, first aid,
cafeteria, lounge and parking facilities among others needs to be improved to meet the
requirement of the tourists travelling to India.

7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online),
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Lack of proper Regulations: The visa procurement procedure is often very cumbersome for
India. The pricing policies across hospitals are also not uniform hence, variances in prices and
reasons behind it could lead to dissatisfaction.
Dominance of Private Hospitals: Most of the Hospitals catering to the Medical Tourism needs
belong to the Private sector. There are growing accusations that profit oriented private-sector
medical tourism is drawing medical resources and personnel away from the local population.
This has been seen as a threat by Government Hospitals and the local Public which feels that
medical treatment at private hospitals has become way beyond their reach though Foreigners
might find in affordable.
Legal Issues: Most of these issues arise because of restrictions in Insurance guidelines. Overseas
medical care is not covered by many insurance players that leads to hassles in bill payment and
Insurance Claim clearance procedures. Most of the countries that offer medical tourism have
weak laws for any kind of malpractice, hence the patient has very little recourse to local courts or
medical boards if something goes wrong.
Security and Competition: Terrorist attacks or political unrest, lack or safety for women in
different parts of the country have adversely affected sentiments of foreign tourists. In addition,
insurgency in different parts of the country also mars India’s image as a safe destination. Hence,
Foreigners are preferring to visit countries like Thailand, Malaysia and Singapore for Medical
treatment which are also medically well advanced and equally affordable. If India as a Brand is
not promoted effectively we might lose out due to this competition.
IV. FUTURE OF MEDICAL TOURISM IN INDIA
The growth of Medical Tourism in India is expected to witness an upward trend in the Future. It
has been observed that the number of Tourists visiting India has been on the rise mostly due to the rise of
the dollar and devaluation of the rupee that has made medical tourism to India more affordable for
foreign tourists. The travel and tourism demand is expected to reach US$ 266.1 bn (14,601.7 bn) by
2019. During 2004–2009 travel and tourism demand in India increased at a compound annual growth rate
(CAGR) of 16.4% to US$ 91.7 bn (4,412.7 bn) and foreign exchange earnings from tourism increased
~13% to US$ 11.39 bn. The number of U.S. patients seeking medical care abroad has declined from
750,000 in 2007 to 540,000 in 2008. An increase of airline transportation costs may be another factor
contributing to the reduction in U.S. patients traveling for healthcare and the rate at which foreigners are
traveling to the U.S for medical care (Deloitte 2009).
Measures to Foster the Growth of Medical Tourism in India:
The biggest challenge is to position India as a favorable healthcare destination by setting high health
standards and to work hand in hand with the government and the medical council to insure that all
hospitals keep up the standards. The Indian healthcare federation now is working along with different
industry chambers to promote medical tourism in the country. The following steps can be taken to
improve the existing medical tourism segment and also to help it grow leaps and bounds in the future:
Create Information outlets in all possible markets through road shows, Brochures, Dedicated
Exhibitions in International Travel Expos etc.
Indian healthcare industry should work more closely with the industry chambers and various
government departments to spread the awareness about Wellness Tourism and remove any
hurdles. Tourism Ministry should take initiatives to promote health Tourism and also focus on
Fiscal incentives to be provided for improving this segment.
Efforts should be made towards getting International accreditation and FDI for various hospitals
to build up perception of quality among foreign tourists.

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Focus should be on building “Brand India” through proper Promotion and Marketing Strategies
by developing physical infrastructure in India with good roads, hospitals, hotels, good sanitation
and drainage system throughout the country.
Stringent laws and quick punitive action must be taken against any flaws in Safety and Legal
matters so as to provide an easy interface for tourists to resolve their problems.
V. CONCLUSION
The growth of Medical Tourism in India is expected to witness an upward trend in the Future. It
has been observed that the number of Tourists visiting India has been on the rise mainly now due to the
rise of the dollar and devaluation of the rupee that has made medical tourism to India more affordable for
foreign tourists. World-class treatment & highly advanced healthcare infrastructure already present in
India must be wisely used to help revive the falling Rupee by concentrating on one of its high potential
Health Tourism Industry. Strong academic & research base & a booming healthcare industry in India
contributes towards a world class medical force including Physician’s, Surgeon’s, paramedical staff and
nurses. India’s medical fraternity boasts of a highly intellectual resource pool skilled & qualified
professionals. (10% Doctors in USA are Indians). Low operating costs, high resources & highly qualified
English-speaking manpower have made India the hub for Research & Development as well as clinical
trials, thereby contributing primarily to the healthcare infrastructure. In a bid to attract large number of
medical tourists the government of India has taken substantial steps to improve the quality standards of
the health care services in India, but the GOI must further enhance its health tourism services united with
all the agencies involved in order to generate wealth through this booming health Industry.
BIBLIOGRAPHY
Websites
1. ICRI. Medical Tourism. What is Medical Tourism?
2. Overseas Indian Felicitation Centre (2011), Tourism Industry of India.
3. Neeraj.V.S.Neeni (2010), Health Tourism. A boon or Curse?
4. Indian Institute of Travel and Management,. A study of problems and challenges faced by medical
tourists vising india.
Journals
1. Shaik Shahzadi Begum, (2012), Medical and Wellness Tourism: Opportunities and Challenges-
Marketing “Brand India”.
2. Dr. Shishupal Singh Bhadu, (2011), Opportunities and Challenges of Medical and Health
Tourism- Creating a Brand of Alternative Tourism in India.
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Books
1. John Connell, (2011),. Medical Tourism, CABI.
2. Dr. R.Kumar (2008). Medical Tourism in India: Management and Promotion. Deep and Deep
Publications Pvt. Ltd.