Early detection of disease can lead to cure and frugal diagnostic devices are useful tools in doing it. This is the need of the hour in India. Low cost medical devices can provide access, affordability and equity in healthcare in India. This paper provides an overall understanding of problems and prospects of healthcare sector in India with respect to diagnostic tools. The review provides how frugal diagnostic tools can make a difference in the lives ofpeople through easy to understand examples of ultra-low cost diagnostic devices.