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

Abstract

Introduction

• Medical tourism from the US is rapidly growing, especially among under-65, working, non-White/Hispanic, and moderate-income individuals lacking full health coverage.

• Top reasons: Dental (55%), cosmetic, and essential medical treatments.

• Mexico is the top destination (41% market share) due to proximity and affordability, with Tijuana, Cancún, and Monterrey as key hubs.

2. India’s Pharmaceutical Advantage:

• India is a global leader in generics:

  • 20% of global generics, 40% of US generics, and 60% of global vaccines.

  • Indian generics are 70–90% cheaper than branded drugs.

  • Rural pharma hubs are expanding, offering cost advantages (30–60%) and increased exports ($27–28B in 2024).

3. Strategic Opportunity:
India can expand into Mexico's healthcare market to indirectly serve American medical tourists, boosting exports and partnerships.

4. Policy Recommendations:

A. Harmonize Regulatory Standards

• Align Indian drug approvals with Mexican and US agencies.

• Sign bilateral agreements (e.g., Pharmexcil & COFEPRIS).

• Facilitate legal distribution of Indian generics in Mexican clinics/pharmacies.

B. Integrated Care–Pharma Packages

• Partner with Mexican clinics to create bundled treatments (e.g., dental implants + Indian generics).

• Invest in supply chains and cold storage.

C. Targeted Marketing & Education

• Launch outreach programs in US border states to promote Indian generics' safety, efficacy, and cost benefits.

• Provide patient assurance guides at Mexican clinics/pharmacies.

D. Capacity Building & Quality Assurance

• Train Mexican healthcare providers on Indian drug usage and side effects.

• Implement track-and-trace systems to combat counterfeit drugs.

E. Digital & E-Pharmacy

• Use telemedicine and digital platforms to fulfill prescriptions post-visit for US patients.

F. Monitoring & Evaluation

• Create a joint Indo-Mexican commission to monitor drug quality, complaints, and outcomes.

Conclusion

India can capture a significant—and growing—share of the US medical tourism market in Mexico by combining its generic drug affordability, proven pharmaceutical export capacity, and collaborative partnerships with Mexican healthcare providers. A targeted, policy-driven approach—focusing on regulatory harmonization, bundled pharma-enabled care offerings, rigorous quality assurance, and US-targeted education—will help India become the default source of high-quality medicines for American patients seeking affordable care abroad.

References

[1] US medical tourism demographics and procedures 3 Indian pharmaceutical and policy data 3 1 2 [2] Academic and policy studies on medical tourism and cross-border healthcare 4 5 6 ? India-plays-an-important-role-in-the-global-pharmaceuticals-and-vaccine-industry.docxamrit.docx medical-tourism.xlsx https://www.granthaalayahpublication.org/Arts-Journal/ShodhKosh/article/view/5497 https://journals.lww.com/10.4103/JME.JME_127_24 https://pmc.ncbi.nlm.nih.gov/articles/PMC7178960/

Copyright

Copyright © 2025 Anirudh Khajuria. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.