I've had most of my medical care over the last few years done in India. This includes LASIK (34k per eye), a selective nerve root blocker injection (8k) and a micro lumbar discectomy (85k). I expect to have a second discectomy done in the next month (being really tall sucks), provided my condition doesn't worsen and I'm able to fly.
Overall, my experience with India's medical system has been fantastic. I've found clean hospitals (not all of them!), total price was all completely transparent (+/- 10% of quoted price), and the doctors have generally been as good as in the US.
Overall, for anyone needing significant medical work done, I strongly recommend medical tourism.
Also, while you are there, have a custom suit made (particularly if you are really tall, and ordinary clothes don't fit). But be warned - I spent more on my suit than on the root blocker injection.
[edit: numbers in INR. Quick reference: 1 lac INR = 1600 USD. In spite of a few years worth of inflation, I don't expect to spend more than 2k USD on back surgery.]
[edit 2: 1 lac = 100,000.]