Umbilical cord blood, which was once considered as a waste product and which was discarded together with placenta, is now recognized and considered to contain potentially lifesaving cells called as hematopoietic stem cells (HPSCs). Cord blood transplantation offers various distinct advantages as compared to bone marrow and peripheral stem cells such as reduced graft versus host diseases, also low vulnerability of rejection against host human leukocyte antigen (HLA), if mismatched. However the probability of a successful transplantation of a cord blood stem cell is reduced since the amount of hematopoietic stem cell isolated from the cord blood cells in an adult human are not sufficient enough. Also, Umbilical cord blood has not been included as a routine part of obstetrics care and is not medically indicated. The collection of Umbilical cord blood cells should not be compromised with neonatal or obstetrics care and also the routine practice of umbilical cord blood clamping. After discovering the clinical potential of cord blood stem cells, various private and public banks emerged to store this biological entity in various parts of the world for future purpose. While public blood banks use the stored cord blood cells for the welfare of common people, the private enterprises are set up for independent purpose. In this article we will discuss the basics of cord blood transplantation and the perspective of stem cell research in developing countries like India.