The growth of medical tourism in India has led to the advancement of medical science, development of medical infrastructure and retention of skilled manpower, and generated value for the economy. The medical tourism market is expected to expand at a CAGR of 27 per cent to reach US$ 3.9 billion in 2014, from $1.9 billion in 2011. With the emergence of newer needs and with India establishing a firmer footprint as a healthcare delivery destination, medical tourism is likely to gain impetus.

According to KPMG- FICCI report 'Medical Value Travel in India', the global demand for healthcare services is on a rise, driven by demographic factors such as increased longevity and rising birth rates, changing disease patterns, unavailability of quality healthcare in many countries, rise in disposable income and healthcare awareness, and cost cutting measures by several advanced countries have pushed value of medical value. Medical tourism can help to reduce the burden of disease considerably and help people receive the timely and appropriate care they need.

India has an edge over the competitive countries in terms of cost effectiveness in medical tourism. A person coming to India for medical treatment can save anywhere in the range of 30-70 per cent. The overall expenditure would be lower than the treatment cost in the UK or the US or many other countries. The fall of the rupee against the dollar will offer a cost advantage of around 35 to 40 per cent.

The KPMG- FICCI reports pointed out that the emergence of strong private sector in India has improved the quality of helathcare. Many of the private hospitals are accredited with the National Accreditation Board for Hospitals & Healthcare Providers (NABH) and Joint Commission International (JCI). Currently, 21 JCI accredited healthcare facilities are in India. Private hospitals are taking various initiatives such as structuring teams and processes, adopting corporate governance, and carrying out internal audits and separate governance for clinical quality to improve and maintain quality standards.

Many Indian hospitals now have modern technologies/treatments available with well equipped ICUs, cardiac surgery treatments, cath labs, organ transplant, advanced imaging technologies such as MRI and PET, prenatal diagnosis, neonatal screening, bone marro transplant, and in vitro fertilisation options. The standard of medical services at large corporate hospitals has positioned India on the global map as a preferred destination for high end medical care.

Further, India is preferred in other parameters like affordable hotels, air connectivity, communication facilities and better infrastructure in terms of highways and roads. The report stated that it has been observed that medical tourists from SAARC nations are more comfortable in India as compared to western countries.. Availability of food as per the patient's requirement is another consideration. Many hospital chains provide different cuisines to its international patients.

With large hospitals associated with medical device sector, India's value as a credible healthcare destination is on a rise. According to KPMG-FICCI report Indian healthcare sector has emerged as the one of the largest sectors in India and is poised to grow at a CAGR of 15 per cent to reach approximately US$ 158 billion by 2017. The sector has received over a billion dollars of investment by way of private venture and equity capital, and boasts of one of the largest eye-care chain in the world. The Indian hospital industry market size reached at US$ 66.7 billion in 2013-14 and expected to touch US$ 100 billion by 2016-17. Similarly, the size of medical device segment is likely to move up to Rs. 498 crore by 2016.

Thailand, India and Singapore are ranked as the top medical tourism destinations in Asia. Various Asian countries have earned a reputation in advanced and life saving healthcare such as spinal implants, neurosurgical and cardiovascular treatments, join treatment. Availability of alternative treatment options such as yoga, Ayurveda, Herbal medicines, Thai massage, medical spa, Siddha, and Unani also give Asia an edge over other countries. Malaysia and Taiwan are the upcoming medical value travel destinations in Asia.