Hospitals in Kolkata suffer as BD men shun Indian healthcare
News Desk :
India’s medical value tourism (MVT) sector has seen a significant decline in patient arrivals from Bangladesh, attributed to worsening bilateral relations and visa restrictions.
According to the latest data from the Ministry of Tourism, MVT recorded a year-on-year (YoY) drop of 43 per cent in November 2024 and 59 per cent in December 2024, reaching its lowest monthly figure of 30,800 in the past year.
The downturn in MVT has adversely affected hospitals reliant on international patients, particularly in Kolkata and the northeastern states.
“The decline aligns with our expectations,” said Tausif Shaikh, an analyst at BNP Paribas Securities India Private Limited.
Referring to the firm’s Pulse from the Ground: Unpacking the Bangladesh Crisis report, he noted that while the resumption of freight train services between India and Bangladesh after nine months is a positive development, a full recovery in MVT is expected to take time.
“The situation remains challenging as India has scaled down visa operations for Bangladesh, and fleet operators continue to function at limited capacity,” Shaikh explained.
“Many patients currently travelling had applied for and obtained their visas before the crisis escalated, but new applications remain restricted.”
This decline underscores the need for India to expand its medical tourism reach beyond a single country.
A policy brief by the Indian Council for Research on International Economic Relations (ICRIER), Looking Beyond Bangladesh: Making India’s Medical Value Travel Sector More Resilient, emphasised the importance of diversifying India’s MVT base.
Hospitals that cater to a significant number of Bangladeshi patients are already experiencing the impact, with analysts predicting a continuation of this trend in Q4 FY25.
Among the major hospital chains covered by BNP Paribas, Apollo Hospitals (APHS) is expected to bear the brunt of the decline, while Aster DM Healthcare (ASTERDM) and Fortis Healthcare (FORH) are likely to be less affected.
Bangladesh, which accounts for nearly 70 per cent of India’s MVT market, has also witnessed a sharp drop in foreign tourist arrivals (FTA).
The number of Bangladeshi visitors fell by 44 per cent in November 2024 and 67 per cent in December 2024 compared to the previous year.
December arrivals stood at 60,800, marking a 70 per cent decline from the peak recorded in June 2024.
Data from the ICRIER report revealed that in 2022, Bangladesh accounted for 69 per cent of India’s medical tourists.
In contrast, Thailand – a nother major medical tourism hub – attracts patients from a broader range of regions, including China, the Middle East, and Europe.
Similarly, Malaysia and Singapore have actively marketed their healthcare services to Indonesia, Australia, and Gulf nations, thereby reducing their dependence on a single country.
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India ranked 10th in the Global Medical Tourism Index for 2020-21, lagging behind nations such as Thailand, Singapore, and Turkey.
While India offers competitive healthcare pricing-up to 65 per cent lower than in Western countries-its market penetration remains limited due to factors such as visa restrictions, a lack of awareness regarding accreditation, and gaps in international insurance acceptance.
The Indian medical tourism sector also faces structural challenges. The ICRIER report highlighted that while over 1,200 hospitals in India are accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH), many international patients prefer facilities with Joint Commission International (JCI) accreditation, which only a limited number of Indian hospitals possess.
This reduces India’s appeal to patients from regions where JCI standards are widely recognised.
Additionally, the sector struggles with unregulated medical facilitators, a concentration of internationally accredited hospitals in metropolitan areas, and restrictive visa and insurance policies.
Several countries, including Iraq, Yemen, and Nigeria, lack access to India’s e-medical visa, limiting their ability to travel for treatment.
Furthermore, the absence of medical insurance portability discourages foreign patients, as they are required to bear treatment costs out-of-pocket.
To address these challenges, the ICRIER report recommended expanding India’s medical tourism outreach to Africa, the Middle East, and developed markets.
Increasing awareness of NABH-accredited hospitals could help attract more international patients.
Furthermore, streamlining the visa process, enhancing digital payment infrastructure, and introducing regulations for medical facilitators could help establish a more structured and accessible system.