Foreigners drive 150% surge in health insurance uptake in India

The growth is strongest amongst women and non-residents.

A surge in health insurance uptake is fueling the rise of medical tourism amongst non-resident Indians (NRIs), with new data from Policybazaar showing a 150% year-on-year (YoY) increase in NRI health insurance customers in fiscal year 2025. 

The growth is strongest amongst women (up 125%) and NRIs under 35 (up 148%), as more individuals seek to access affordable, high-quality care in India with the backing of domestic health coverage.

NRIs are increasingly purchasing Indian insurance policies to cover treatments for themselves or ageing parents. 

Nearly half (46%) of NRI claims now originate from Tier-3 cities, where many elderly relatives reside. 

Infectious and respiratory diseases accounted for the most common claims, followed by cancer and heart conditions.

India’s health insurance remains far cheaper than in other countries. Premiums average $120 to $300 per year, compared to $8,000 or more in the US and $4,000 to $5,000 in Gulf states. 

This affordability, combined with high medical standards, has driven a sharp rise in digital search traffic: queries for “health insurance India for NRIs” rose 60% YoY, whilst searches for treatment options for overseas citizens grew 45% over the past 18 months.

Cost savings on procedures remain a key factor. A heart bypass surgery costs $5,000–$8,000 in India, compared to up to $150,000 in the US. 

Similarly, kidney and liver transplants in India are priced at a fraction of the cost in Western countries. 

Medicines, too, are far cheaper, thanks to India’s robust generic pharmaceutical industry.

With no wait times, English-speaking medical staff, and strong support infrastructure, India’s medical tourism market is expected to hit $13b by 2026, supported by the government’s Heal in India programme. 

South Indian cities remain top destinations, with Hyderabad, Ernakulam, and Thrissur amongst the most preferred across hospital tiers.