India offers one of the most cost-effective healthcare services. After latest central budget, is India going to cash in on higher growth from medical tourism? Shutterstock
‘Time has never been better’ to invest in India’s healthcare: Dr. Moopen
Manoj Nair (Business Editor)
Dubai: if everything falls into place, India’s healthcare sector could be in for a significant round of growth from new investments and favourable government policies find their mark.
Over the last week, both the central budget announced by India’s Finance Minister Nirmala Sitharaman and the Kerala state budget placed special emphasis – and more important, government backing – to get more from medical tourism.
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It wasn’t just coincidence that healthcare sector and medical tourism found prominent mentions in both budgets. And more Indian states could be lining up their own policy shifts in attracting healthcare sector funding.
According to Dr. Azad Moopen, founder and Chairman of Aster DM healthcare, “For investors—both domestic and NRI—this moment presents a wealth of opportunities. The Indian government’s decision to ease visa norms for medical tourism is a game-changer, especially for a state such as Kerala.
“India’s positioning as a global healthcare destination opens up vast potential for investment.”
Dr. Moopen’s India operations is going through a potential merger deal with Quality Care, a hospital operator with a sizeable presence in northern India.
Sources say this year could see more GCC based institutional funding going into healthcare operators in India, even those who have their strengths outside of the metropolises. Andhra and Telangana are rated as high potential as are Uttar Pradesh and Maharashtra.
Budget speak
This is what Sitharaman had to say during the budget speech: “Medical tourism and ‘Heal in India’ (initiative) will be promoted in partnership with the private sector along with capacity building and easier visa norms.”
As while presenting the 2025-26 Kerala budget, the state’s Finance Minister K. N. Balagopal confirmed plans to set aside up to Rs500 million in further expanding health tourism. “The (Kerala) state government will hold a global level campaign to feature the health tourism potential of Kerala,” he added, for good measure.
Now, if these proposals turn into actual action plans, then India’s healthcare sector and allied areas could be in for a sustained growth run. “India can offer one of the most cost-effective medical consultations and hospital facilities in the world,” said the owner of a healthcare company in the Gulf. “There are GCC investors wanting to partner Indian companies to develop all such possibilities.
“It’s good the Indian government is talking about developing medical tourism. If policies don’t come through, India will waste opportunities in healthcare.”
Need more investments in Indian healthcare – and fast
That sentiment about offering cost-effective services resonates loud.
In 2024, foreign investments into Indian healthcare rose to $1.5 billion, with nearly half of this going into hospitals. This compares to 24% as healthcare FDI in FY21 and 43% in FY20.
Plus, investors are getting their rewards from putting money into healthcare stocks.
“These last 12 months, the Indian healthcare space has rewarded investors decently,” said Milan Vaishnav of ChartWizard. “While the NSE Healthcare Index has returned 20.81% over the past year, the BSE Healthcare index returned 23.95%.”
Market sources say the $1.5 billion in foreign direct investment is just a glimpse of the kind of potential India’s healthcare sector offers. “There are existing hospitals that could do much better with new investments or global partners,” said an official with a healthcare fund operator.
Kerala is well placed
According to Dr. Moopen, new policies such as easier visa processing will ‘strengthen Kerala’s position as a leading medical tourism hub while also boosting local businesses, hospitality, and allied services. “For Aster, which already caters to a large number of international patients, this is a significant opportunity to expand beyond Middle East and tap into new markets.”
Source: Gulf News
