In fact, when the global slowdown has affected the Indian industry like any other country, the healthcare sector is among the few sectors which have shown growth amidst the present uncertain situation in economy. According to the latest analysis made by the ASSOCHAM, Indian healthcare industry is growing very fast and in the first quarter of 2009-10, the growth rate of the industry was as high as 42.44 per cent in terms of net profit. It is mentioned that India has a cost advantage through which it provides better and cheap health care services than most other countries. With the booming healthcare industry, medical tourism has also grown at a significant pace over the recent years.

The chamber study points out that healthcare always promotes people to seek medical care and necessities and these cannot be sacrificed like many other non essential consumer goods and services. The other reason behind the growth of healthcare services may be the increase in per capita income of people leading to better affordability of health care services. In this industry, ten major groups registered a growth of 23.94 per cent in total income and 21.37 per cent in total expenditure in the first quarter of the current fiscal. While the employees cost increased by 22.24 per cent during this period as compared to the same period last year. Healthcare services provider such as Apollo Hospital registered 23.36 per cent growth in total income and 53.06 per cent growth in net profit during the first quarter of 2009-10. However, the total expenditure also registered 23.41 per cent growth in which employment cost increased by 30.75 per cent during the first quarter of 2009-10 as compared to the same period of 2008-09.

The globally integrated healthcare company Piramal healthcare registered 16.48 per cent growth in total income and 45.48 per cent in net profit during the period. The total expenditure grew at the rate of 11.74 per cent, employment cost increased by 13.20 per cent during Q1 FY '10 as compared to the same period last year.

Other major healthcare group such as Cadila and Glaxosmithkline registered 26.54 per cent and 24.15 per cent growth in total income. The net profit of these groups grew by 32.69 per cent and 19.56 per cent respectively whereas the total expenditure increased by 26.43 per cent and 21.80 per cent respectively during the first quarter.

In the healthcare segment, other major healthcare groups including Fortis hospitals group, Kovai Medical Centre and Hospital Limited, Malar Hospitals Limited, Sharma East India Hospitals & Medical Research Limited, Siemens Healthcare Diagnostics Ltd. and TTK Healthcare Limited registered growth in total income, net profit and total expenditure including employment cost.

Fortis hospital limited registered 155 per cent growth in total income during the Q1 of FY '10 as compared to the same period last year, whereas the group registered just 8.33 percent growth in net profit. The group shows 19.52 per cent increase in total expenditure and the employment cost of the group grew by 39.65 per cent during the first quarter of FY '10 as compared to the same period in last year.

Healthcare groups such as TTK Healthcare Limited and Siemens Healthcare Diagnostics Ltd. registered 91.44 per cent and 17.96 per cent growth in total income respectively. Both groups registered more than 500 per cent growth in net profit during the period. The total expenditure of the groups registered a growth of 43.15 per cent and 13.23 percent of which employment cost increased by 48.64 percent and 22.29 percent during the first quarter of FY '10 as compared to the same period in last year.

Other healthcare service provider which registered growth in net profit and employment cost were Kovai Medical Centre and Hospital Limited (64.22 per cent and 34.17 per cent), Malar Hospitals Limited (126.98 per cent and 217.93 per cent) and Sharma East India Hospitals & Medical Research Limited (25.28 per cent and 26.50 per cent). (IPA)