New Delhi [India], March 28 (ANI): India's medical tourism industry is set to witness strong growth, with its market size projected to reach USD 13.42 billion by 2026, according to a report by Grant Thornton.

The sector's expansion is driven by India's cost advantage, growing hospital networks, rising investments, and increasing adoption of technology.

It said 'Medical tourism is projected to reach USD 13.42 billion by 2026, further underlining the sector's strong growth prospects'.

One of the major reasons behind India's emergence as a global healthcare hub is its affordability. The country offers medical treatments at just 20-25 per cent of the cost in developed nations.

This cost-effectiveness, combined with high-quality healthcare services, attracts patients from across the world, strengthening India's position in the global medical tourism market.

The report also mentioned that India's healthcare industry is not just a growth driver but also a significant contributor to employment.

The sector has emerged as one of the largest employers in the country, generating numerous job opportunities across hospitals, research centres, and medical technology firms.

Currently, 60 per cent of hospital beds in the country are concentrated in metro cities, while 70 per cent of India's population resides in rural areas. This gap presents huge potential for healthcare expansion in Tier 2 and Tier 3 cities, where demand for quality medical services is rising.

India's healthcare industry is also experiencing a rapid shift towards digital solutions. AI-powered diagnostics, telemedicine, and other health-tech innovations are transforming patient care.

The AI-driven healthcare market is expected to grow from USD 14.6 billion in 2023 to USD 102.7 billion by 2028, revolutionizing medical operations and accessibility.

The expansion of health insurance coverage is further boosting the sector. In FY23, gross direct premium income underwritten by health insurance companies grew to Rs 90,600 crores (USD 10.86 billion). This increasing insurance penetration is making quality healthcare more accessible to the population.

With cost advantages, infrastructure expansion, mergers, and growing investment in digital health and insurance, India's medical tourism sector is on a strong growth path.

As the country continues to enhance healthcare access and efficiency, it is poised to become a global leader in medical tourism in the coming years. (ANI)