Most of the population from developed countries like United Sates and Europe see an advantage in traveling to developing third world countries, like Sri Lanka, India, Thailand, Philippines, South Africa, etc. while combining medical treatments with an option of inexpensive vacation. This trend is now popularly known as Medical Tourism or Health Tourism or Wellness Tourism. Medical tourism has greatly developed overtime and it is likely to further expand more as people find it more and more advantageous. In this article, we will focus at the reasons for emergence of the medical tourism as a booming industry in India. In the subsequent sections, the key contributor states and corporate hospitals have been identified. The challenges faced by the industry have also been highlighted in the later part of the article.