India is witnessing a significant rise in medical tourism from Non-Resident Indians (NRIs), with a 150 per cent year-on-year increase in NRI health insurance adoption in FY25, according to a report by Policybazaar. The report attributes this growth to considerable savings on treatment and insurance premiums, increasing trust in Indian healthcare services, and the availability of local support systems for overseas citizens.
According to Policybazaar, NRIs can save between 60 to 90 per cent on major surgeries by receiving treatment in India. For example, a heart bypass surgery costs between $5,000 and $8,000 in India, compared to $70,000 to $150,000 in the US. Similarly, knee replacements, liver and kidney transplants are also significantly less expensive in India, with potential savings reaching hundreds of thousands of dollars.
The report notes that the average insurance claim amount for NRIs ranges from $2,000 to $15,000 for elective procedures, and from $20,000 to $40,000 for more complex surgeries—still much lower than treatment costs abroad.
There has also been a 125 per cent increase in health insurance adoption by NRI women and a 148 per cent rise in policyholders under the age of 35, reflecting growing interest across demographics. A large number of policies are being taken for elderly parents residing in India, further contributing to this trend.
India’s low-cost insurance premiums are another major draw. The average annual premium for a person in India is between $120 and $300, compared to $8,000 or more in the United States and $4,000 to $5,000 in GCC countries. This pricing gap is prompting many NRIs to explore Indian health insurance options for themselves and their families.
According to Google Trends and industry search data cited by Policybazaar, online searches for “health insurance India for NRIs” grew by 60 per cent year-on-year. Searches for “medical treatment for overseas citizens in India” increased by 45 per cent in the last 18 months. Other top searches include “best health insurance plans for parents in India,” especially from the UAE, UK, and US.
The report also outlines medicine cost disparities. For example, a vial of insulin costs between $1 and $5 in India, versus $100 to $300 in the US. Other common medications such as paracetamol, atorvastatin, and cancer treatments like imatinib are also significantly more affordable in India.
Private hospitals in India are offering quick access to medical procedures with no long wait times, in contrast to some Western countries. Hospitals such as Apollo, AIIMS, and Tata Memorial are frequently chosen by NRIs due to familiarity with the Indian healthcare system, family proximity, and English-speaking medical staff. Some insurance plans now also include support services for NRIs managing their parents’ treatments in India.
The data further shows that 46 per cent of NRI health insurance claims are now filed in Tier-3 cities, while Tier-2 and Tier-1 cities account for 33 per cent and 21 per cent respectively. The majority of these claims relate to treatment for infectious diseases (18 per cent), followed by respiratory diseases (11 per cent), cancer (9 per cent), and heart conditions (9 per cent).
South Indian cities are among the top locations for NRI hospitalisations across all tiers. In Tier-1 cities, Hyderabad, Chennai, Mumbai, Bengaluru, and Kolkata lead in claim volume. In Tier-2 cities, Ernakulam, Thiruvananthapuram, Pune, Thane, and Coimbatore are preferred. Thrissur, Kollam, Kozhikode, Kottayam, and Pathanamthitta are the most frequented Tier-3 destinations.
India’s medical tourism sector, backed by the government’s “Heal in India” initiative, is projected to grow to $13 billion by 2026.