India Targets Global Medical Tourism Leadership with Regional Health Hubs and Major Healthcare Reforms in Union Budget

Union Finance Minister Nirmala Sitharaman on Saturday unveiled an ambitious plan to transform India into a global centre for medical tourism by announcing the creation of five Regional Medical Hubs across the country.

Presenting the Union Budget, Sitharaman said the central government will roll out a dedicated scheme to support states in developing these hubs in collaboration with private sector partners.

Integrated Healthcare Ecosystems

The proposed Regional Medical Hubs are envisioned as comprehensive healthcare complexes that will bring together treatment, education, research, and wellness services under one roof.

According to the finance minister, each hub will feature:

• AYUSH centres promoting traditional and holistic therapies
• Medical Value Tourism Facilitation Centres for international patients
• Advanced diagnostics facilities
• Post-treatment recovery and rehabilitation infrastructure

“These hubs will not only strengthen healthcare delivery but also attract global patients seeking high-quality and affordable treatment,” Sitharaman noted.

She added that the initiative is expected to generate large-scale employment for doctors, nurses, and allied health professionals (AHPs), significantly boosting high-skilled jobs in the healthcare sector.

Industry Welcomes the Vision

Ameera Shah, President of NatHealth, described the announcement as a major step toward positioning India as a global healthcare destination.

“The establishment of Medical Value Tourism hubs will accelerate growth in medical travel. Integrating AYUSH centres will also highlight India’s strength in holistic and alternative care systems,” she said.

Need for a Formal Framework

Dr Ajay Swaroop, Chairman of the Board of Management at Sir Ganga Ram Hospital, said that India already has world-class doctors and cutting-edge medical technology that meet global standards.

However, he pointed out that medical tourism has so far grown largely through private efforts, without a structured government framework.

“If the government officially promotes medical tourism, it will bring international credibility and strong economic benefits,” he said.

Dr Swaroop stressed the importance of addressing practical challenges such as:

• Identifying international patient demand
• Standardising treatment rates
• Ensuring ethical practices

He also suggested creating a national database to track patient inflow, countries of origin, and medical procedures.

“This data will help plan specialised centres — such as transplant hubs or oncology clusters — based on real demand patterns,” he explained.

System Gaps Still Remain

Dr Vinay Aggarwal, former member of India’s first medical tourism board and Chairman of Pushpanjali Group of Hospitals, highlighted the absence of an organised system in the early years of medical tourism.

“International patients earlier depended entirely on private hospitals or facilitators. There was no structured process for visas, documentation, or treatment coordination,” he said.

Hospitals had to manually manage consultations, certificates, and paperwork, making the process slow and inconsistent.

While recent initiatives like e-visas and the creation of a medical tourism board have improved the situation, Dr Aggarwal noted that scaling up the industry will require:

• Strong ethical oversight
• Uniform quality standards
• Better coordination between hospitals, government agencies, and tourism services

Visa and Infrastructure Challenges

Dr Dharmendra Nagar, CEO of Paras Healthcare, said India’s healthcare quality is already strong, but logistical barriers remain the biggest hurdle — especially visa processes.

“Although medical visas have been liberalised, foreign patients still face difficulties, which discourages many from choosing India,” he said.

He stressed that further easing of visa rules is essential if India wants to compete with established medical tourism destinations like Thailand.

Dr Nagar also pointed to the lack of a fully integrated healthcare-tourism ecosystem.

In successful medical tourism countries, hospitals are closely linked with hotels, transport, and tourism services, creating a seamless experience. In India, this connection is still weak, which could limit our global appeal,” he added.

Major Push for Mental Health and Emergency Care

Beyond medical tourism, Sitharaman announced several key healthcare reforms.

New National Mental Health Institute

To address the shortage of advanced mental healthcare facilities in north India, the government will establish a second national-level mental health institute — NIMHANS-2 — modelled after the National Institute of Mental Health and Neurosciences.

Additionally, existing mental health institutes in Ranchi and Tezpur will be upgraded into Regional Apex Institutions to strengthen specialised treatment, training, and research.

Expansion of Emergency and Trauma Care

Recognising the heavy financial burden that emergencies place on families — especially the poor — Sitharaman announced the establishment of Emergency and Trauma Care Centres in district hospitals nationwide.

These facilities will increase critical care capacity by 50 per cent, improving access to lifesaving treatment.

Public health expert Dr Dileep Mavlankar welcomed the move but suggested prioritising districts located along major highways, where road accidents are more common.

“Injuries often prevent the main earning member of a family from working, pushing households into poverty,” he said.

However, he cautioned that infrastructure alone would not solve the problem.

“There must be enough trained doctors and specialists. Many professionals are reluctant to work in district hospitals, and this gap must be addressed,” he added.

Dr Mavlankar also pointed out that the Budget missed tackling air and water pollution, major contributors to long-term health problems.

A Broader Healthcare Transformation

Overall, the Union Budget outlines a bold vision to:

• Make India a global medical tourism powerhouse
• Expand advanced healthcare infrastructure
• Strengthen mental health services
• Improve emergency and trauma care access

If implemented effectively, experts believe these reforms could not only attract international patients but also significantly improve healthcare outcomes for millions of Indians.

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