Though neonatal services have made tremendous improvements in developing countries like India, there are a number of challenges to be met as the neonatal mortality and morbidity remain unacceptably high. Lower perinatal and neonatal mortality have been achieved in the developed countries following advancement of neonatal care, introduction of high technologies, and beHer knowledge of pathophysiology of the newborn infants. It is necessary to prioritize neonatal care in developing countries; proper and timely resuscitation of newborn by the well trained pediatricians, prevention of nosocomial infections by using sterilized equipment, avoiding indiscriminate use of antibiotics, thorough hand washing before examination of the baby, isolation of infected babies and by following aseptic procedures. Other simpler measures include warming devices for maintenance of body temperature of the newborn babies, blood glucose monitoring, and antenatal steroids for mothers in premature labor, effective management of jaundice to prevent kernicterus, and nasal CPAP for mild RDS, etc. A substantial proportion of sick newborn infants still require advanced NICU care, which is prohibitively expensive and not affordable by the most of the parents in India.