Policy Paper: Leveraging India?s Generic Pharmaceutical Strength to Capture the US Medical Tourism Market in Mexico

US medical tourism is rapidly growing, with Mexico the leading destination, primarily for cost-sensitive procedures such as dental, cosmetic, and essential medical treatments.India, a global powerhouse for affordable, high-quality generic medicines, has an opportunity to expand its pharmaceutical exports and presence in Mexico-serving the needs of American medical tourists while building strategic healthcare partnerships. II. US MEDICAL TOURISM DEMAND & DEMOGRAPHICSRecent US data shows that the majority of outbound medical tourists are under 65, more likely to be non-White/Hispanic, currently employed, and from moderate-income groups.Many lack adequate health coverage or face cost barriers for care in the US.Dental procedures, cosmetic surgeries, and medical treatments are the leading reasons for American medical travel to Mexico.Comparison of demographics and health characteristics between US medical tourists and non-medical tourists. III. MEXICO: GATEWAY FOR AMERICAN MEDICAL TOURISTS A. Mexico: Gateway for American Medical TouristsMexico is the leading destination for American medical tourists, capturing a market share of 41%.Its popularity is due to its proximity to the United States and the lower cost of medical procedures and pharmaceuticals.The primary reasons for Americans traveling to Mexico for medical care are dental work (55%), unspecified procedures (20%), and medical treatments for illness (6%).Other procedures like cosmetic surgery account for 3% of the total.The top destinations within Mexico for these tourists are Tijuana, Cancn, and Monterrey Mexico receives the largest share of US medical tourists, Mexico receives the largest share of US medical tourists, with a market share of 41%.This makes it the leading destination for Americans seeking medical care abroad.The proximity of Mexico to the U.S. and the cost-effective nature of its medical procedures and pharmaceuticals are the main factors driving this trend.The most common procedures sought by American visitors in Mexico are: Dental work: 55% Unspecified procedures: 20% Medical treatments for illness: 6% Key destinations for these medical tourists within Mexico include Tijuana, Cancun, and Monterrey especially for dental work, cosmetic procedures, and cost-effective pharmaceutical purchases (see attachment data). Key destinations: Tijuana, Cancun, Monterrey. Top medical procedure for American visitors: Dental work 55% , unspecified procedures 20% , medical treatments for illness 6%.IV. INDIAS GENERIC PHARMACEUTICAL EDGE 1) Worlds largest provider of generics: 20% global supply, 40% of US generics, 60% of global vaccines 1 2 .2) Rural Indias pharmaceutical production is rising: Over 3,000 units, 15 20% of India's output, with significant cost advantages 30 60% lower input costs), government incentives, and rising export capability 3 .3) Cost savings: Indian generics are 70 90% cheaper than branded counterparts.