GDP 2005 – $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, 11 th Plan ( ) – 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 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