ANOTHER SUNRISE SECTOR !

2. ANOTHER SUNRISE SECTOR ! Or ! The sunrise sector !

3. The Economy • Economic Reforms since 90s :- • focused on • Liberalization • Globalization • Privatization • Economy Shifted from • Socialist command to capitalist market Since 2005 FDI stake

4. The Economy • 100% FDI allowed in – • Housing • Commercial enterprises • Hospitals • Educational Institutions • City & regional level infrastructure

5. The Economy • 100% FDI allowed in – • Housing • Commercial enterprises • Hospitals • Educational Institutions • City & regional level infrastructure

6. 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

7. The Effect 2008 • GDP crossed $ 1 trillion FORECAST Gdp Growth at 7 – 7.5% $27 TRILLION BY 2050

8. 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 ”

9. The Solution ! • Overcome “ steady state” and continue growing by inventing new technology and/ or “new capital”. HOW ?

10. BUT FIRST !

11. 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

12. 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.

13. 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

14. 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

15. 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

16. The Solution ! Education & Training

17. 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

18. The emerging skill shortage POSITIVES NEGATIVES 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 • 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

20. 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

21. 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 !!!!!!!

22. 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

23. The sunrise sector CAPACITY BUILDING FOR THE HEALTH CARE SECTOR’S DEMAND FOR MANAGEMENT PROFESSIONALS

24. The Health Care Matrix NGO PVT HOSP GOVT PVT HOSP CORPORATES NGO INSURANCE GOVT MANUFACTURING CORPORATES INSURANCE MANUFACTURING PHARMA IT CR PHARMA IT CR

25. What brings it together?

26. SCIENTIA POTENTIA EST Sir Francis Bacon 1597 – Meditatione Sacrae

27. 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

28. 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

29. Thank you