Despite an uncertain political relationship, and tensions between India and Pakistan, healthcare is a sector for trade that has the potential to grow. It is a soft sector, offering a win-win situation for both countries as producers will get a larger market for their products while consumers will have more options and superior quality products to choose from. Given India's growth in the area of providing medical value travel facilities in South Asia, the objective of the study is to explore the potential of enhancing trade in the health sector, between India and Pakistan. Based on a survey of hospitals, intermediaries and patients, the study examines the key characteristics and constraints of India-Pakistan trade in health services. The study also documents lessons that India can learn from its South-East Asian competitors in the medical tourism industry and finally recommends policies that will improve trade in health services between India and Pakistan.