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The Union Budget 2026 was keenly watched by the tourism sector, with high expectations. Union Finance Minister Nirmala Sitharaman announced several initiatives that could boost the sector, including a measure targeted at healthcare. She proposed the creation of five regional medical hubs to strengthen medical value tourism in the country. “To promote India as a medical tourism hub, I propose a scheme to support states to set up five regional hubs in the country,” she said while presenting the Union Budget 2026–27 on Sunday.
The medical hubs proposed in the budget will feature Ayush centres, diagnostic infrastructure, and post-care rehabilitation facilities. They are expected to create a wide range of employment opportunities for doctors as well as allied health professionals.
Sitharaman also announced the establishment of three new All India Institutes of Ayurveda. She said that Ayurveda has gained global acceptance and recognition in the post-Covid period, much like yoga. The export of quality Ayurveda products would benefit farmers engaged in cultivating medicinal herbs, the Finance Minister emphasised.
In addition, the she outlined plans to upgrade Ayush pharmacies and drug-testing laboratories. The WHO Traditional Medicine Centre in Jamnagar, Gujarat, will also be strengthened to “bolster evidence-based research on traditional medicine.”
Medical tourism is the practice of travelling across international borders to receive medical treatment, often combined with tourism activities. It is driven by lower-cost procedures, shorter waiting times, access to advanced treatments, or specialised care not available in the patient’s home country. Popular procedures that people travel for include dental work, cosmetic surgery, elective surgery, fertility treatments (IVF), and, in some cases, organ transplants.
Medical tourists often combine their procedures with leisure, wellness, and cultural experiences, turning their health journey into a vacation. Beyond treatments like surgery or dental work, they typically engage in sightseeing, spa treatments, yoga, and exploring local cuisine to aid recovery and make the trip worthwhile. Visiting local attractions, historic sites, and taking tours, especially if the recovery period allows for light activity.
According to reports, India is a premier global hub for medical tourism, with approximately 2 million patients visiting annually from more than 78 countries. Over 644,000 foreign tourists visited India for treatment in 2024. The industry is valued at over USD 12 billion in 2026, projected to exceed USD 35 billion by 2027. Reports by PIB and DD News state that Bangladesh is by far the top country from which people visit India for medical tourism, accounting for over 70 percent of all medical visas issued. In 2024, nearly 5 lakh (482,336) patients from Bangladesh visited India for treatment. Other major source countries include Iraq, Somalia, Oman, and Uzbekistan.
Thailand is a leading destination for cosmetic surgery, gender affirmation procedures, dental care, and wellness treatments, with top-tier hospitals such as Bumrungrad International. Turkey has emerged as a global center for hair transplants, dentistry, and aesthetic procedures, particularly in Istanbul. South Korea is known for its advanced technology and expertise in dermatology, plastic surgery, and cancer care. Mexico attracts North American patients seeking convenient and cost-effective dental treatments, bariatric surgery, and cosmetic procedures.
The benefits of seeking treatment abroad include significantly lower costs—sometimes as little as one-tenth of home-country prices—high-quality care in accredited hospitals, and the opportunity to travel while recovering. However, potential risks and considerations remain, such as post-operative complications during travel, varying safety standards, language barriers, and challenges in arranging follow-up care once back home.
(With inputs from various sources.)
What is the key focus of Budget 2026 on healthcare and tourism?
The budget aims to boost medical tourism by creating five regional medical hubs and strengthening India’s position as a global healthcare destination.
What will the regional medical hubs include?
They will feature AYUSH centres, medical value tourism facilitation units, diagnostic infrastructure, post-care and rehabilitation facilities.
How does Budget 2026 support Ayurveda?
It proposes the establishment of three new All India Institutes of Ayurveda, upgrades to Ayush pharmacies and drug-testing labs, and expansion of research at the WHO Traditional Medicine Centre in Jamnagar.
How will these initiatives generate employment?
The medical hubs and expanded Ayurveda facilities are expected to provide diverse job opportunities for medical practitioners, allied health professionals, and research staff.
How does the budget aim to attract international patients?
By improving healthcare infrastructure, setting up specialised hubs, and promoting Ayurveda and wellness services, the budget positions India as a competitive destination for global medical value tourism.
