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ANOTHER SUNRISE SECTOR !
Or
! The sunrise sector !
The Economy
• Economic Reforms since 90s :– focused on
• Liberalization
• Globalization
• Privatization
– Economy Shifted from
• Socialist command to capitalist market
Since 2005 FDI stake
The Economy
• 100% FDI allowed in –
– Housing
– Commercial enterprises
– Hospitals
– Educational Institutions
– City & regional level infrastructure
The Economy
• 100% FDI allowed in –
– Housing
– Commercial enterprises
– Hospitals
– Educational Institutions
– City & regional level infrastructure
The effects
• GDP
2005
– $604 billion
– Accounting for 6.3% share of world income
– Fourth largest in terms of real GDP
2010
– $929 billion
BUT
The Effect
2008
– GDP crossed $ 1 trillion
FORECAST
Gdp Growth at 7 – 7.5%
$27 TRILLION BY 2050
Barriers to Growth
•
•
•
•
•
•
Inflation
Global Recession
Resource crunch
Environmental effects
Improper utilization
Diminishing returns to capital ( i.e. a point
when increase in capital will not result in
economic growth) – “ steady state ”
The Solution !
• Overcome “ steady state” and continue
growing by inventing new technology and/ or
“new capital”.
HOW ?
BUT FIRST !
The health sector
• Contribution of health sector to Indian
Economy :– Highest year on year growth of 42% in earnings
(2007) due to
• Availability of high quality care
• Rise in number of patients visiting India
• One of the largest service industries
employing > 4 million workers
The health sector
• Health care spending will double in next 10
years
• Private health care spending - $ 15 billion
$ 34 billion by 2012
$ 42 billion if health insurance
made available to rich and middle class
• Voluntary health insurance market( $2.8
billion) growing at 30% p.a.
The health sector
• With expected rise in pharma, insurance &
medical devices market, the total health care
market will rise from :– Rs 1030 ($22.2) billion ( 5.2% of GDP)
To
– Rs 2320 – 3200 ( $ 50-90) billion (6.2 – 8.5% of
GDP) by 2012
The Barriers
• Too many Health s
• Lack of Resources
• Trained Manpower
shortage
• Political interference
• Corruption
• Poor Infrastructure
• Inequity in accessibility
• Lack of health
education
• Impractical Planning
• Lack of valid data
• Wrong Focus/priorities
• Social & Cultural
Barriers
The Barriers
• Too many Health s
• Lack of Resources
• Lack of health
education
• Political interference
• Corruption
• Poor Infrastructure
• Inequity in accessibility
• Trained Manpower
shortage
• Impractical Planning
• Lack of valid data
• Wrong Focus/priorities
• Social & Cultural
Barriers
The Solution !
Education & Training
Determinants of Economic Growth
– Quantum of labor force (LABOR CAPITAL)
– Stock of physical capital
– Technological changes embodied in capital
goods
– Quality of labor force
• Extent of education
• Level of health
The emerging skill shortage
POSITIVES
NEGATIVES
• FAVORABLE DEMOGRAPHIC
PROFILE – MANPOWER
AVAILABILITY, CAPABILITY TO
LEARN
• KNOWLEDGE SERVICE SECTOR
EMERGED AS SIGNIFICANT
GROWTH ENGINE
• INDIA’S EARLY LEAD & STRONG
FUNDAMENTALS
• IT-ITES SERVICES ALONE NEED
1000,000 PERS BY 2012
• SHORTAGES IN TALENT SUPPLY
• ONLY 10% OF GLOBAL
MARKET POTENTIAL TAPPED
• 500,000 SHORT FALL IN
SKILLED PERS BY 2010
• WILL LOSE US$ 86 BILLION
WITH PRESENT CAPABILITY
5%
9%
3%
5%
16%
3%
9%
Health and Family Welfare
4%
4%
Development
15%
5%
Food Supply
5%
1%
1%
Education
5%
1%
2%
4%
4%
4%
Energy
2%
2%
3%
Agriculture
Law and Government Spendings
Transportation
Commerce
Chemicals
4%
3%
Science and Technology
Defences
General Spendings
4%
40%
State and Union Territories
37%
Budget Allocation 07/08 – 08/09
EDUCATION
• GOVT RECOGNISES :– THAT
“ EDUCATION IS THE PATHWAY TO ECONOMIC
SUCCESS”
– NEED FOR SUPPORT TO UNIVERSITIES &
EDUCATIONAL INSTITUTES
– NEED FOR 1500 MORE UNIVERSITIES
– NEED FOR BETTER TEACHING STAFF AT ALL LEVELS
WITH BETTER REWARDS & ACCOUNTABILITY
– ‘ PUBLIC-PRIVATE PARTNERSHIP’ IN EDUCATION
THE FUTURE OF EDUCATION
• Development & progress in the field of
education is inescapable if we are to
effectively compete with powerful global
economies – Dr Manmohan Singh, PM, Goa
University Convocation- Dec 2007,
• 11th Plan (2007-12) – Education centric plan
• 19% of GDP for growth of the education
sector
The new sunrise sector !!!!!!!
The Immediate Need
• Management of the health care verticals
– By professionally trained health care managers
– With primary managerial competencies; and
– Thorough understanding of health care issues
CAPACITY BUILDING
The sunrise sector
CAPACITY BUILDING
FOR THE HEALTH CARE SECTOR’S
DEMAND FOR
MANAGEMENT PROFESSIONALS
The Health Care Matrix
What brings it together?
Sir Francis Bacon
1597 – Meditatione Sacrae
The Conclusions
• Health care sector & education are the major
drivers of the economy
• For the present growth to be sustainable over
a period of time demands capacity building
• The indegenous attiudes, practices &
procedures developed must be locally
implementable and globally acceptable
• Academia – industry co-operation
inescapable
Some thoughts
• Our progress as a nation can be no swifter
than our progress in education. The human
mind is our fundamental resource.
• A teacher affects eternity; he can never tell
where his influence stops