India's medical tourism takes a hit as patient arrivals from Bangladesh plunge amid visa restrictions

India’s medical value tourism (MVT) sector has seen a sharp drop in patient arrivals from Bangladesh due to deterioration in bilateral ties and visa restrictions. According to the latest data from the Ministry of Tourism, MVT declined by 43% year-on-year (YoY) in November 2024 and 59% in December 2024, reaching its lowest monthly level of 30,800 past year. 

“The decline is in line 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 said, “The resumption of freight train services between India and Bangladesh after nine months is a positive sign, but a full recovery in MVT will take time.” 

“The situation remains challenging as India has scaled down visa operations for Bangladesh, and fleet operators continue to run at limited capacity,” Shaikh said. “Many patients currently travelling had applied for and received their visas before the crisis deepened, but new applications remain constrained.” 

The decline in MVT has affected hospitals that rely on international patients, particularly in Kolkata and the northeastern states. “Hospitals catering to a large number of Bangladeshi patients have already felt the impact, and we expect a similar trend to continue in Q4 FY25,” Shaikh noted. Among major hospital chains covered by BNP Paribas, Apollo Hospitals (APHS) is expected to be more affected, while Aster DM Healthcare (ASTERDM) and Fortis Healthcare (FORH) are likely to see a lower impact. 

Bangladesh, which accounts for nearly 70% of India’s MVT, has seen a significant drop in foreign tourist arrivals (FTA). The number of visitors fell by 44% in November 2024 and 67% in December 2024 compared to the previous year. Arrivals in December stood at 60,800, a drop of 70% from the peak recorded in June 2024. 

The decline in Bangladeshi patients highlights the need for India to push its potential beyond one 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, stressed the importance of diversifying India's MVT base. 

Data from the ICRIER report shows that in 2022, Bangladesh accounted for 69% of India’s medical tourists. In contrast, Thailand, another major player in medical tourism, attracts patients from a more diverse set of countries, including China, the Middle East, and Europe. Similarly, Malaysia and Singapore have actively promoted their healthcare services to Indonesia, Australia and Gulf nations, reducing their dependence on any one country. 

India ranked 10th in the global Medical Tourism Index in 2020-21, lagging behind countries like Thailand, Singapore and Turkey. The report noted that while India offers competitive healthcare pricing — up to 65% lower than in Western countries — its market penetration remains limited due to factors like visa restrictions, lack of awareness about accreditation and gaps in international insurance acceptance. 

India’s medical tourism sector faces several structural issues. The ICRIER report pointed out that while over 1,200 hospitals in India are accredited by the National Accreditation Board for Hospitals & Healthcare Providers (NABH), many international patients prefer Joint Commission International (JCI) accreditation, which only a few Indian hospitals have. This affects India's ability to attract patients from regions where JCI standards are more widely recognised. 

Moreover, the sector struggles with unregulated medical facilitators, the concentration of internationally accredited hospitals in metro cities and restrictive visa and insurance policies. Many countries, including Iraq, Yemen and Nigeria, do not have access to India’s e-medical visa, limiting their ability to travel for treatment. The absence of medical insurance portability further discourages foreign patients, as they must bear the cost of treatment out-of-pocket, the report said. 

To address these setbacks, the ICRIER report suggested broadening India’s medical tourism outreach to Africa, the Middle East and developed markets. Increasing awareness of NABH-accredited hospitals could help attract more patients. Streamlining the visa process, improving digital payment infrastructure, and regulating medical facilitators could also create a more structured and accessible system.