Globally there has been tremendous growth in the health service sector, catalyzed by inadequate national public health services, the spiralling cost of health services and the availability of cheaper alternatives in developing economies. This has led to the globalization of health care worldwide, illustrated by growing cross-border delivery of health services that is estimated to be in excess of US$140 billion (World Trade Organization 2001).

In India, health care is one of the largest sectors, in terms of revenue and employment, and this sector is expanding rapidly. During the 1990s, the Indian health care sector grew at a compound annual rate of 16%. Today the total value of the sector is more than US$34 billion. By 2012, India's health care sector is projected to grow to nearly US$40 billion (PricewaterhouseCoopers 2007). A major proportion of this growth is predicted to be attributable to the growth in the business of medical tourism.

Medical tourism in India has gained momentum over the past few years. According to the Confederation of Indian Industries (CII), approximately 150 000 patients arrived in India in 2005 from across the globe for medical treatment, and this is expected to increase by 15% each year (Confederation of Indian Industries and McKinsey & Co. 2002). The medical tourism market in India was estimated at US$333 million in 2004 and has grown by about 25%. It is predicted to become a US$2 billion a year business opportunity by 2012 (Ernst & Young 2006).