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MARCH 11, 2007
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FDI And FII
The centre is looking at removing the distinction between FDI and FII investments. This will impact sectors like asset reconstruction, real estate and aviation, where separate ceilings apply to FDI and FII investment. However, allowing FDI through the FII route in the realty sector could result in prices shooting through the roof. The Asian financial crisis of the '90s is still fresh in mind, and a method should be devised to moderate possible volatility in key sectors.


S&P And After
For the first time in 14 years, international credit rating agency, Standard and Poor's (S&P), has raised India's credit rating to investment grade. S&P is the last of the three major international rating agencies to do so. Moody's Investors Service did it in January 2004 and Fitch Ratings in August 2006. The upgrade is likely to spur the flow of foreign investment into power, steel and other industries, which receive less than a tenth of the funds going China's way.
More Net Specials

Business Today,  February 25, 2007

 
 
BT SPECIAL: HEALTHCARE
Wanted: Doctors and Nurses
The healthcare industry's biggest challenge is manpower. The supply is far short of demand, besides which, there are other countries poaching from India.
Future hope: India needs more doctors than what it produces
What can trip up India's healthcare boom? You probably know it already: A dearth of doctors, nurses and technicians. At present, the country just doesn't have enough of them. Consider this: According to FICCI-E&Y estimates, there are just 592,200 doctors and 929,826 nurses in the country. To raise the doctors-to-1,000-people ratio to 1 by 2012, India will need 1.2 million doctors, and to achieve a doctors-to-nurses ratio of 1:2, some 2.4 million nurses will be required by that year. But as things stand, India produces just 22,000 doctors and 30,000 nurses, which means by 2012, there will still be a yawning gap between demand and supply. On top of it, an estimated 10 per cent of doctors and nurses emigrate from India every year. "Medical migration is a cause of concern for the healthcare industry in India. The job opportunity landscape has suddenly changed from West Asia to the US and the UK, particularly for the nurses," says Vishal Bali, CEO, Wockhardt Hospitals.

As sector after sector is discovering, the shortage of skilled manpower is due to a lack of education and training facilities in India. It is imperative that the government builds more such institutions or at the least, allows (profitable) private sector participation in them. The industry is already lobbying for a say in the curriculum design and training in all government-run courses. While that will help, the private players will have to look at creating training infrastructure of their own. The promoters of Fortis, for instance, have announced plans of building a Fortis International Institute of Medical & Bio-Sciences, which will be a "medicity" in Gurgaon, with a medical college, dental college, nursing college and other educational programmes. The Medicity will be owned by a non-profit affiliate and not by Fortis Healthcare.

Learning@AIIMS: World class, but very small
Others like Care Hospital and Apollo Hospitals also have nursing colleges and train doctors. Apollo, which has a full-time workforce of 18,000 and almost an equal number of outsourced or contractual employees, has nursing and paramedical training schools (13 of them) and also does campus recruitment. It intends to double its workforce by 2010. Some other hospitals are turning to Indian doctors abroad as well. "Over the last one year, we have launched an aggressive programme to hire some specialists from abroad," says Mukesh Shivdasani, Executive Director (Operations), Max Healthcare. And this is yielding fruit. Recently (early January or so) Max tapped an experienced doctor from the US, Dr Pervez Ahmed, as the Executive Director of Medical Operations. Along with Dr Shivdasani, Dr Ahmed makes up the leadership team at Max Healthcare today.

The setting up of world-class hospitals, comparable doctor salaries (at least, at the specialist level), and growing restrictions on licensing and practice within the European Economic Community are encouraging hundreds of Indian doctors abroad to return home. And there are more than 60,000 of them to tap; the UK alone has 15,000 doctors of Indian origin. Recently, the British Association of Physicians of Indian Origin said that more than 5,000 Indian doctors may have returned to India since April of 2006 due to changes in immigration rules. "Before 2004-2005, about 10,000 doctors from India used to come every year. Since the new immigration rules were announced in April 2006, about 5,000 doctors might have gone back," the association's spokesman Raman Lakshman told PTI.

Britain's loss will be India's gain, but the healthcare industry cannot depend on such supplies to meet its soaring needs. Domestic supplies have to be stepped up. It's a familiar problem, but in this case it's the health of a nation at stake.

 

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