UAE titans of industry weigh in on policy reform
A sectoral initiatives wishlist for economic growth in India
Suresh Kumar, Chairman, Indian Business and Professional Council
India is one of the most populous nations with 1.3 billion people and young demographics; in contrast with China – another most populous nation but with an aging population. Apart from the numbers, India’s economy on a purchasing power parity is fast emerging as the third-largest economy in the world.
"India’s economy on a purchasing power parity is fast emerging as the third-largest economy in the world."
India has more engineers than most nations in the world and already in the services sector, be it technology or human resources, India’s outsourcing and insourcing capabilities are on par with some of the best in these businesses.
Of course, India still operates below its true potential.
A key deficiency until recently, with coalition governments at the Centre in India, was lack of decisive leadership and stability, in terms of policies and strength of purpose. Happily, having just had the national elections in May 2019, India now has Narendra Modi as the Prime Minister again with the strong mandate and majority in Parliament.
We can continue to expect bold decisions and even seemingly unpopular but required direction and decisions that can eventually shape the economy and national polity. Narendra Modi’s cabinet has retired some aging and ailing leadership, respectfully, but has brought in outstanding talent and experience, especially in foreign affairs and the economic ministries. This augurs well for the country and India will soon rise to the greater good.
Dr Azad Moopen, Founder Chairman and Managing Director, Aster DM Healthcare
Where do you see India in the next five years? What are the healthcare-specific regulations you expect from the Indian government?
I see India occupying the centre stage as a major economic power in the next five years. This will have its impact on the healthcare sector too. Healthcare has emerged as one of the growth sectors in India and a key index to define the progress of the country. The healthcare market is expected to reach $372 billion by 2022, driven by increasing purchasing power, better health awareness, rising non-communicable diseases (NCDs) and increase in access to health insurance.
The healthcare market is expected to reach $372 billion by 2022, driven by increasing purchasing power, better health awareness, rising non-communicable diseases (NCDs) and increase in access to health insurance.
The most important sector-specific support required is increased allocation of resources. The present government spent as a percentage of GDP for healthcare is less than 2 per cent. This must be increased to 4-5 per cent. There is a requirement to declare Health as a Right of all citizens.
The government should focus on improving and augmenting the infrastructural aspects of the healthcare system and simultaneously tweak the cost so that it becomes more affordable. With the rise of NCDs, we also need a focused approach to putting in prevention mechanisms rather than just access to proper treatment and quality care.
We also need a clearer strategy for the implementation of Ayushman Bharat, the National Healh Protection Mission and the largest healthcare scheme of the world, encouraging collaboration between private and public sector to address the gaps.
What steps should the Indian government take to further improve ease of setting up business?
Though we have advanced on the ease of doing business index from 100 to 77 last year, challenges such as fluctuating commodity prices and exchange rates and lack of basic infrastructure continue to persist in many sectors. Also, doing business in a country like ours, with its cultural, geographical, demographical diversity is not an easy endeavour. To enter the top 50, India must move from policy reforms to actionable benefits.
Aspects Indian corporate and business sectors need to achieve as next steps in becoming a global economy are ease of taxation – improvements in GST, simplified infrastructure and government frameworks, enhanced cross border functionalities across varied business segments and further technology enhancement, especially in rural areas.
— As told to Priya Mathew
Adeeb Ahamed, MD, LuLu Financial Group
India is today one of the world’s fastest growing economies. Over the past seven decades, India has shown its prowess in various fields and Indians around the world can take pride in the giant leaps the country has taken.
As an NRI, we have been able to do business both in the UAE and India, in line with the vision of the great leadership of both countries.
India continues to be the world’s top recipient of inward remittances, with nearly $80 billion coming into the country in 2018 – an increase of more than 15% from the previous year, according to the latest World Bank report.
Our financial services arm, LuLu Financial Group has its operations in the UAE and across GCC & India. India is one of our most important corridors for outward remittances considering they constitute one of the largest expat population in the GCC countries. Nearly 40 per cent of our remittances from UAE are to the Indian corridor. We have seen a steady increase in the number of remittances to India these past few years and expect it to grow over the coming years as well.
India continues to be the world’s top recipient of inward remittances, with nearly $80 billion coming into the country in 2018 – an increase of more than 15% from the previous year, according to the latest World Bank report.
Over the years, India-UAE relations have gotten close than ever before. With relation between the two countries being elevated to a comprehensive strategic partnership, various contours across key areas of focus have expanded and surpassed previous levels.
With major projects coming up all over the region, the economic prospects of the UAE are brighter than ever. The positive economic growth would result in more jobs and opportunities for expats, which would in turn translate to better remittances to their home country.
PNC Menon, Founder and Chairman, Sobha Realty
The recent win for the NDA that elected Narendra Modi as Prime Minister for a second consecutive term is testimony to the world’s greatest exercise in democracy. Among the voters, an estimated 45 million young people voted for the first time.
A stable government at the centre is expected to encourage inflows from foreign portfolio investors into Indian markets, additionally we also expect an increase in disposable income of households due to income tax benefits.
The youth aspire for a stronger India and want to see a strong leader at the helm and it’s obvious that the unanimous choice is Modi. I commend the Prime Minister and the Indian government and believe that India will scale new heights in the next five years.
A stable government at the centre is expected to encourage inflows from foreign portfolio investors into Indian markets, additionally we also expect an increase in disposable income of households due to income tax benefits. With government expenditure expected to pick up in NDA’s second term, India will also be shielded from an imminent risk of a potentially slowing global economy.
Under a strong administration, India is becoming the gold standard for monetary policy in the region and we look forward to leveraging its proactive business-friendly approach.
Dr B. R. Shetty, Founder and Chairman, NMC Healthcare, Finablr, BRS Ventures and Neopharma
The past five years have been fantastic for the Indian economy, witnessing unprecedented growth across several sectors.
India is set to become a five trillion-dollar economy by 2024. Several reforms initiated by the Narendra Modi government will reach fruition due to Modiji’s second term in the office. This ensures the much-required stability and apt environment for the country’s people, culture and economy to thrive.
The recent electoral results will elevate India into a completely different league. With it’s vast intellectual and talent pool, India will see swift development in international trade and commerce, healthcare, education, IT, agriculture, and renewable energy sectors. For a country with such a large population, food security now will be available.
India is set to become a five trillion-dollar economy by 2024. Several reforms initiated by the Narendra Modi government will reach fruition due to Modiji’s second term in the office. This ensures the much-required stability and apt environment for the country’s people, culture and economy to thrive.
India has cultivated a sound start-up culture. Innovative ideas, top notch talent, and access to funding agencies, have been duly recognised by the Government of India (GOI). Startup India, GOI’s flagship initiative intended to catalyse Startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India is seeing massive adoption. We now see interesting companies launched everyday which are carrying out remarkable work.
The UAE and India enjoy a beautiful and strong bond of brotherhood. With the largest number of Indian expats in the world residing in the UAE, the recent electoral results will only provide another booster shot to this.
The whole world is now concentrating on India. I urge fellow countrymen to promote and stand by the Government’s initiatives. Let us all do our bit in taking India to greater heights.
Dr Shamsheer Vayalil, Chairman and Managing Director, VPS Healthcare
I am very optimistic about the growth of the healthcare sector in India. VPS Healthcare has 23 hospitals and over 125 medical centres in four countries, which also includes operating four hospitals in India.
I believe technology-driven services will play an increasingly important role and can be transformative in increasing accessibility and availability of healthcare in India.
India has one of the lowest per capita health spends in the world and Indians bear a disproportionate burden of out-of-pocket costs — about 65 per cent being for their healthcare expenses.
A growth in lifestyle-related diseases are creating a ‘dual burden’ of infectious and non-communicable diseases, so the health sector has to evolve to address these challenges.
I believe technology-driven services will play an increasingly important role and can be transformative in increasing accessibility and availability of healthcare in India.
The healthcare industry is projected to grow to over $370 billion in the next few years, making it one of India’s largest sectors and creating additional opportunities for internal and external investors.
At this point, about 20 per cent of Indians have health insurance, but public programmes – like the world’s largest government funded healthcare scheme, Ayushman Bharat – and private health-insurance will increase penetration, further fueling industry growth.