Our Take
Infrastructure standards and accreditation requirements are real governance moves, but the scheme exists as a framework-in-progress with a consulting firm still drafting the actual contours.
Why it matters
India's medical tourism market is projected to reach USD 16.2 billion by 2030 (industry estimate), up from USD 8.7 billion in 2025. State and hospital operators need to understand eligibility criteria and technical benchmarks before competing for central funding.
Do this week
Hospital CFOs and state health officials: audit your current EMR interoperability and diagnostic infrastructure against the indicative standards DPIIT publishes, so you can identify gaps before the scheme's funding window opens.
Government draws funding scheme for hospital infrastructure and medical hubs
India's Department of Industrial Policy and Promotion (DPIIT) is preparing a scheme to fund the establishment, expansion, and strengthening of hospitals, medical colleges, and healthcare infrastructure. The scheme follows the FY27 Budget announcement of five Regional Medical Hubs designed as integrated healthcare complexes combining medical services, education, research, and wellness facilities under one umbrella.
The infrastructure standards DPIIT plans to publish will specify requirements for smart healthcare surgery enablement, AI-assisted diagnostics, digital pathology, telemedicine, and interoperable electronic medical records. Hospitals seeking funding will also need to meet mandatory Clinical Quality Standards and international accreditation requirements as eligibility criteria.
The hubs will house AYUSH centres, medical value tourism facilitation centres, and advanced diagnostic and rehabilitation infrastructure. According to an official quoted in the announcement, the framework is still nascent and a consulting firm will be engaged to help define the scheme's full structure. Standardised planning norms will cover land utilisation, bed density, ICU capacity, trauma care, diagnostic infrastructure, operating theatres, rehabilitation, outpatient services, and allied healthcare.
A comprehensive marketing framework is also planned to position India as a premier medical tourism destination, including digital promotion strategies and international partnership models.
Market timing and competitive positioning
India's medical tourism market stood at USD 8.7 billion in 2025, with projections of USD 16.2 billion by 2030 (per industry estimates). The government initiative signals intent to capture a larger share by standardising infrastructure and quality criteria that international patients and referral networks expect.
The requirement for interoperable EMRs and AI-assisted diagnostics reflects global expectations for healthcare infrastructure. However, the scheme remains in design phase. Without published standards and a defined funding timeline, hospitals cannot yet begin concrete capital planning. The consulting firm engagement suggests the contours are months away from finalisation.
What hospital operators and state authorities should do now
Hospital CFOs and state health secretaries should begin auditing current EMR systems for interoperability compliance and diagnostic infrastructure against the anticipated standards. This is not optional for any facility planning to bid for central funding.
States competing for hub designation should also map existing biotech parks, research centres, and medical colleges in candidate geographies to understand how closely they align with the "integrated medical district" model DPIIT is developing. Early clarity on local infrastructure readiness will inform bid strategy once the scheme opens.
Procurement teams should defer major diagnostic or EMR vendor commitments until DPIIT publishes its technical benchmarks. Locking into incompatible systems now creates costly rework later.