Charting the Rise of Cosmetic Surgery in India

With its highly skilled and trained professionals, ease of travel, quality healthcare services, India has steadily risen in the ranks of premium healthcare service providers in the world. So much so that according to a report published by the Ministry of Commerce, the medical tourism industry is expected to reach $9 billion in 2020; so much so that the Ministry of Tourism reports a 166 per cent jump on the number of people entering India on medical visas – from 75, 688 in 2014 to 201,333 in 2016. Of these, though, the exact number of medical tourists travelling to India for cosmetic surgery exclusively is not clear. While the country sees a steady influx of tourists from United States, United Kingdom, Canada, Germany, France, etc., most bundle cosmetic procedures with their normal travel itinerary. Experts agree that the Indian cosmetic surgery sector is growing between 20 to 30 percent, however, due to a lack of study and surveys in the field, along with the aforementioned factors, the exact number is unknown.

It is important to note that as much as globalisation and the increase in international tourism have contributed to the impressive growth of this sector, there have also been several other notable factors that have contributed to this growth. 

● Cosmetic surgery clinics in India offer complex procedures at an incredibly affordable rate. According to Dr. Mukul Dabholkar, a Bandra-based dentist, a full mouth rehabilitation with bridgework, crowns and laminates would cost approximately US$ 39,000 in the United Kingdom. The same procedure could be done in US$ 12,600 in India. A Botox shot in India costs about US$ 5.56 per unit; in US it can cost about US$ 70 per unit.

● Though cosmetic surgery and various other associated procedures have been prevalent in India for over four decades, they have always been mentioned in hush-hush tones. This is changed over the last few years, as purchasing power of the Indian middle class has increased by leaps and bounds. Once the privileged Indian upper class was perhaps the sole client of the plethora of highly skilled cosmetic surgeons in the country. That is no longer the case.

● India is not only home to a number of talented cosmetic surgeons running their own clinics, several hospitals, especially in Mumbai, offer cosmetic procedures at cost effective rates. Bombay Hospital and Medical Research Center, Asian Heart Institute, Wockhardt Hospital, Breach Candy Hospital, to name a few. In fact, Dr. Mohan Thomas, a cosmetic surgeon who qualified in the United States and is now practicing in India, calls Mumbai the cosmetic surgery mecca. A member of the national advisory tourism council under the Ministry of Tourism, he notes how up until two years ago Chennai captured a giant share of the Indian cosmetic surgery market because of low fees and operating costs, but that has changed now. Mumbai is not just the entertainment capital of the country, it also the cosmetic surgery capital. If one to believe the grapevines, there is perhaps a relation there.

Streamlined processes, advanced technologies, state-of-the-art infrastructures, specialised & interdisciplinary care, along with highly knowledgeable and skilled doctors, supported by a thoroughly trained and compassionate staff makes India one of the premium destinations for cosmetic surgery in the world. However, the sector is also quite unregulated. Lack of governmental oversight has been reported by many experts; and while in a country such a India, where the healthcare delivery system is itself delivered by both private and public stakeholders, some government initiatives and policy support is, of course, necessary. Fortunately, the government recognises this and is working on drafting several legislations for the same.

With consistent efforts by the government to regulate and strengthen the sector and incredible investment opportunities for private stakeholders, supported by changing lifestyles and increased purchasing power of the common man, India is set to become a global hub for cosmetic surgery services in the coming years.

The Government’s Role in Driving the Indian Healthcare Industry Forward

To drive the growth of the healthcare industry even forward, the government has launched a number of policies and programs. With the National Health Policy, for example, it aims to, domestically, achieve the highest possible level of health and wellbeing for citizens of all ages, and internationally, develop India as a global healthcare hub. It approved the continuation of National Health Mission with a budget of US$ 4.40 billion under the Union Budget 2019-20 and has opened collaboration with the private sector to improve the ease of access to and quality of healthcare services within the country.

Launched fairly recent (on 23 September 2018, to be precise), the Pradhan Mantri Jan Arogya Yojana (PMJAY), has already made considerable impact. Around 9,00,000 patients have received benefits of worth US$ 167.71 million and many more are expected to soon. Advertised as the world’s largest health insurance scheme fully financed by the government, it aims to provide comprehensive primary, secondary, and tertiary healthcare services to over 10.74 crore poor and vulnerable families.

The National Nutrition Mission, aimed at reducing the level of stunting and under-nutrition, has received a budget of US$ 13.16 billion for a three-year period. The policy aims to gradually work towards the attainment of malnutrition free India by 2022 by covering 315 identified districts in the first year, 235 districts in the second year, and the remaining districts in the third.

Mission Indradhanush was launched in December 2014 with the target of ensuring full immunization coverage for at least 90% of the country by December 2018. 201 districts across 28 states in the country have been identified under the “high focus” category. These have the highest number of partially immunized and immunized children.

Further, schemes and policies such as the RashtriyaSwasthyaBima Yojana, that aims to promote and provide health insurance across the country, and the Pradhan Mantri Swasthya Suraksha Yojana, that aims at increasing the quality of tertiary healthcare capacity in medical education, research, and clinical care, and many more, are supported by an increase in allocation to the Ministry of Health and Family Welfare in the Union Budget 2019-2020. The ministry, and the policies coordinated by it, have seen an increase by 16.28 per cent year-on-year to US$ 8.51 billion.

The healthcare delivery system in India is driven by two players – public and private – which is necessary to support such a large population. To attract, invite, and drive collaboration from the private sector, the government has launched various incentives. For example, it has increased the tax holiday under section 80-IB for private healthcare providers in non-metros for minimum of 50 bedded hospitals. Further, all healthcare education and training services are exempted from service tax; income tax has been exempted for 15 years for domestically manufactured medical technology products; and more.

India has strong bilateral relations in the healthcare sector with over 50 countries, as of August 2019. This international cooperation is aimed to encourage joint training and manpower development, exchange of experts, exchange of information and knowledge, etc. Additionally, to ease the influx of international medical tourists to the country, India has deconvoluted the visa process for over 130 countries. Highly skilled professionals, ease of travel, cheap and affordable services have given India an edge in the medical tourism sector of the healthcare industry and it is the fastest growing premium medical tourism destination in Asia, attracting patients from all over the world but in particular from its neighbours such as Pakistan, Bangladesh, Nepal, Afghanistan, Malaysia, Thailand, and Singapore. Since India is expected to grow by 22-25 per cent in this sector, new markets are sure to emerge, especially with the government now working in close collaboration with the private sector to drive this growth forward. For example, special tax holidays and incentives are offered to hospitals and wellness centers that deal with medical tourists.

With an increase in revenue and an expected growth to US$ 280 billion by 2020, stakeholders are looking to explore the latest trends in the healthcare industry in order to make positive impact to their businesses. The hospital industry itself, a rather small portion of the overall healthcare industry, is expected to reach US$ 132.84 billion by FY22. The government’s open collaboration with the private sector to provide cheap, affordable, safe, and effective healthcare services to its citizens and beyond has also helped drive the growth forward leading to ample investment opportunities in the sector.