Healthcare in India is the responsibility of constituent Indian states. The Constitution charges every state with "raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties". The National Health Policy was endorsed by the Parliament of India in 1983 and updated in 2002.

India perhaps is one of the most attractive destinations for the healthcare and medical businesses. Indian healthcare industry size is over US$23 billion and growing at 18% per annum. The increase in life style diseases, phenomenal growth in income levels, 300 million strong middle class, increase in educational levels, and increase in government, private & insurance driven spending are the key reasons of growth of the Indian healthcare industry.

Large number of foreign and Indian private healthcare, pharmaceutical, biotechnology, clinical research, diagnostic and other healthcare/medical companies are increasing their investments and expanding operations. Several international medical equipment and services companies are focusing on India strategy. Large groups of companies from U.S., U.K., Canada, Italy, Japan, Australia have recently visited India to strengthen their presence in India or explore new opportunities. Public Private Sector opportunities are increasing.

According to a study by McKinsey and the Confederation of Indian Industry, medical tourism in India could become a $1 billion business by 2012. The report predicts that: "By 2012, if medical tourism were to reach 25 per cent of revenues of private up-market players, up to Rs 10,000 crore will be added to the revenues of these players". The Indian government predicts that India’s $17-billion-a-year health-care industry could grow 13 per cent in each of the next six years, boosted by medical tourism, which industry watchers say is growing at 30 per cent annually.