another sunrise sector ! or ! the sunrise sector !

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

• 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 Economy

• GDP2005– $604 billion – Accounting for 6.3% share of world income– Fourth largest in terms of real GDP

2010 – $929 billion

BUT

The effects

2008– GDP crossed $ 1 trillion

FORECAST

Gdp Growth at 7 – 7.5%$27 TRILLION BY 2050

The Effect

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

• 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 health sector

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• 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

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

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?

SCIENTIA

POTENTIA EST

Sir Francis Bacon1597 – 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