NRIs drive surge in India’s medical tourism with significant growth in health insurance adoption

India’s medical tourism is witnessing a significant rise as more Non-Resident Indians (NRIs) opt for treatment in their home country, driven by massive cost advantages, cultural familiarity, and growing insurance access. According to a recent report by Policy Bazaar, there has been a 150% year-on-year growth in the number of NRIs purchasing health insurance in India.

The report highlights that NRIs can save between 60% to 90% on major surgeries in India compared to the US and UK. It also notes a significant increase in health insurance adoption among NRI women (125%) and those under 35 years of age (148%).

Massive cost advantage in treatments


India’s cost advantage is a major draw. For instance, a heart bypass surgery that costs $70,000–$150,000 in the US can be done in India for $5,000–$8,000. Similarly, knee replacement costs $4,000–$6,000 in India, against $30,000–$50,000 in the US.

Liver and kidney transplants also show wide disparities. In India, a liver transplant costs around $25,000–$35,000, while in the US, it can go up to $500,000. Kidney transplants cost between $7,000–$12,000 in India, compared to $200,000–$300,000 abroad.

Policy Bazaar’s data shows that typical NRI claims in India range from $2,000–$15,000, going up to $40,000 for complex surgeries, still much lower than international costs.

Affordable premiums fuel interest

Health insurance premiums in India remain far more affordable. While average annual premiums in the US can exceed $8,000 per person, India offers plans for as low as $120 to $300. In the GCC region, premiums are around $4,000 - $5,000.

This cost differential is pushing more NRIs to explore insurance options. According to PolicyBazaar, Google Trends show a 60% rise in searches for “Health insurance India for NRIs” and a 45% increase in interest for “Medical treatment for overseas citizens in India.” Plans for elderly parents remain a key area of focus.

Tier-3 cities now account for 46% of NRI claims

NRIs are increasingly using health policies in India’s Tier-3 cities, with these regions accounting for 46% of all claims. Policies are often bought for elderly parents who live outside metro areas, showing growing trust in India’s expanding medical network.

Share of NRI claims by city tier:

• Tier 3: 46%
• Tier 2: 33%
• Tier 1: 21%

Leading causes of hospitalisation among NRIs

The report identifies infectious diseases, respiratory issues, cancer, and heart conditions as the most common reasons for hospitalisation.

Top reasons for NRI hospitalisation:

• Infectious diseases: 18%
• Respiratory conditions: 11%
• Cancer: 9%
• Heart conditions: 9%
• Gastrointestinal: 7%
• Eye, musculoskeletal, and neurological issues also appear among the top reasons.

South Indian cities lead in NRI healthcare

Cities across South India dominate the list of most preferred destinations for NRI medical care. In Tier-1 cities, Hyderabad, Chennai, Mumbai, Bengaluru, and Kolkata lead. Ernakulam, Thiruvananthapuram, Pune, Thane, and Coimbatore top Tier-2 preferences, while Tier-3 cities such as Thrissur, Kollam, and Kozhikode show strong traction.

Insurance now comes with on-ground support

Many insurers now offer on-ground assistance for NRIs, particularly for managing treatments for their parents. Services include support with travel, hospitalisation, and post-treatment care.

The availability of culturally familiar care, English-speaking staff, and no waiting periods further adds to India’s appeal. Private hospitals such as Apollo, and Tata Memorial offer world-class treatment with shorter wait times than Western public systems.

Generic medicines add to savings

The affordability of Indian medicines also plays a role. For example, insulin vials that cost $100–$300 in the US are available in India for $1–$5. Cancer drugs like Imatinib, costing over $10,000 per month in the US, are available in India for $100–$500.

A $13 billion opportunity

Supported by the government’s Heal In India initiative, the medical tourism sector is projected to reach $13 billion by 2026. The growing NRI interest, expanding insurance access, and rising trust in Tier-2 and Tier-3 healthcare networks suggest continued growth in the years ahead.