The realization that medical graduates are failing to serve the health needs of the society has compelled the medical educationists and regulatory authorities worldwide to review the medical training. A medical curriculum oriented towards developing the key competencies that enable a fresh graduate to be delivering socially responsive health care is seen as a promising step towards alleviating this problem. This calls for a departure from the traditional approach of organizing the curricular components around educational objectives, to a competency-based approach for planning the curriculum. The present article discusses the concept of competency-based medical education in Indian context, the steps in planning and implementing such a curriculum, and the key aspects of assessment for its effective implementation.