India’s Union Budget for 2026-27 introduces plans for five Regional Medical Hubs to elevate the nation as a prime medical tourism destination. Healthcare leaders in Hyderabad express enthusiasm for the initiative, urging enhanced ecosystem improvements and stronger collaboration between central and state authorities.
Key Elements of the Budget Initiative
Finance Minister Nirmala Sitharaman unveiled the proposal on February 1, 2026, outlining central government support for states to develop integrated healthcare facilities in tandem with private partners. These hubs aim to integrate cutting-edge clinical treatments, medical training, research facilities, AYUSH centers, medical value tourism support, and infrastructure for diagnostics, recovery, and rehabilitation services.
Hyderabad’s Strong Position in Medical Tourism
Hyderabad already draws significant numbers of international patients, positioning the city as a prime candidate for one of these hubs if Telangana secures inclusion. Officials report that the state welcomes over 100,000 visitors each year from the Middle East, Africa, SAARC nations, and CIS countries.
Vijay Anand Reddy, director of Apollo Cancer Centres, highlights Hyderabad’s status as a top destination for global patients. “We possess the necessary infrastructure and expertise to serve these individuals. At Apollo Hyderabad, nearly 30% of our patients come from abroad,” he states. Patients arrive from South Asia, Africa, Europe, and the US, attracted by treatment costs that are about one-tenth of those in developed nations, alongside tailored care.
Bhaskar Rao, chairman and managing director of KIMS Hospitals, emphasizes the city’s comprehensive capabilities. “Hyderabad offers advanced tertiary care, substantial patient traffic, medical education, and research in one cohesive system. Expert clinicians, affordable therapies, robust diagnostics, transplant expertise, and experience with international cases provide a clear advantage,” he explains.
Building a Supportive Ecosystem
P. Hari Krishna, executive director of Medicover Hospitals, underscores the broader infrastructure. “The ecosystem goes beyond hospitals to include rehabilitation, post-acute care, hospitality, and a skilled workforce—all vital for medical tourism. This setup makes Hyderabad an ideal, ready-to-implement site for such a hub,” he notes.
Mallikarjuna C., managing director of the Asian Institute of Nephrology and Urology (AINU), supports the overall goal but points to the need for seamless central-state partnership, given healthcare’s state-level jurisdiction. “Successful execution demands solid cooperation between the central and state governments, as health primarily falls under state responsibility,” he asserts.
