The hospital industry is one of the most important components of the value chain in the healthcare industry.

The industry is growing at the rate of 14% annually. The size of the Indian healthcare industry is estimated to grow at Rs. 1,717 billion in 2007. It is estimated to further grow by 3,163 billion at 13% compounded annual growth rate. The private sector accounts for 80% of the healthcare as compared to the public sector which is just 20%. According to surveys conducted by WHO, a country as populated as India needs to add 80,000 beds each year for the next five years to meets its ever growing population. The current rate of hospitals and beds stands at a bare 15,393 and 8,75,000 respectively. (Apollo, 2009)

The growing standard of living of many Indians is leading to spurring demand for high quality medical care and transforming the healthcare sector into a profitable industry. In addition to that, medical tourism is fast changing the face of the so called traditional healthcare industry. India’s cost advantage and explosive growth makes it a favourable place for healthcare opportunities. (Apollo, 2009)

The country has been well known around the world for spiritual healing and now with the boom in modern medicine, latest technology and skilled healthcare professionals it is soon becoming a preferred destination for medical tourism.

According to Ministry of Commerce and Industry, Indian medical tourism that was once valued at USD 350 million in 2006 is estimated to grow into USD 2 billion. (Apollo, 2009)