India Africa Aligning for the changing global business dynamics

From President’s Desk

For centuries India and Africa have enjoyed a very close and cordial multifaceted relationship. The strong political linkage provides a stable base against which these two promising economies should strive to elevate their economic relationship. The India-Africa Forum Summit would lead to high level discussions and deliberations which will eventually form the building blocs of long lasting partnerships.

As emerging economies, India and Africa share a lot in common - diverse natural resources, similar demography, growing middle class, which provides for a synergy for developing economic cooperation between the two regions. Economies of India and Africa are complementary to each other and stand to gain immensely from increased trade and economic cooperation. Concrete efforts should be channelised towards identifying and building upon the complementarities between the two economies.

The total trade between India and Africa reached US$ 71.47 Billion in 2014-15, increasing at a CAGR of approximately 15% since 2009-10. Africa claimed a share of 10.5% in the total exports of India in 2014-15 and 8.6% share in the total Indian imports in 2014-15, depicting a nearly constant trend over the last four years. Moreover, Indian investments in Africa have grown substantially across the continent and sectors.

Africa is increasingly becoming an attractive hub for foreign investors in the light of various economic, political and social reforms that are being implemented throughout the continent, resulting in a much improved business environment which is conducive for foreign direct investment. Apart from that, there is a widespread development of important social and physical infrastructure as well as the presence of a large population of well-educated, English-speaking workers in most countries across the continent.

I am sure that this comprehensive report on India’s strengths in the important sectors of infrastructure and healthcare would serve as an informative guide to African policy makers, researchers and industry stakeholders.

Alok B. Shriram President

From Chairman’s Desk

‘India-Africa Cooperation in Infrastructure and Healthcare’ highlights the potential India has in these two sectors and how Africa could engage Indian expertise in creating these facilities in their respective countries. It gives me immense pleasure and honour to present it to our esteemed readers.

Economic relations between India and Africa have enhanced greatly in the last few years, particularly in the areas of – power, energy, healthcare, ICT, agriculture, education and skill development, but a lot of untapped potential still exists for the two regions. India has also developed a huge reservoir of technical manpower through its wide network of technical training institutes and can help Africa immensely by sharing its expertise in setting up the infrastructure geared towards the needs of developing economies.

Much of the dynamism, from the Indian side of the current India-Africa trade and investment relationship, can be credited to the steps taken by the Government of India. Initiatives like Focus Africa Scheme, Lines of Credit projects, Pan-Africa e-network, India’s Technical and Economic Cooperation Programme (ITEC) lays a roadmap to strengthen our relationship.

The two sectors covered in the report – Infrastructure and Healthcare form the pillars of any country’s development. For a holistic development of Africa, issues like connectivity, demand and supply gap, electrification, communication, lack of adequate infrastructure, affordable housing, absence of quality healthcare, lack of trained medical professionals and presence of life threatening diseases needs timely and sustainable solutions.

I am sure the report would give valuable insight about India’s capabilities and achievements in these sectors and new seeds of cooperation can be sown between India and Africa.

Sanjeev SardanaChairman, International

Affairs Committee for Africa

From Co-Chairman’s Desk

India & Africa, the upcoming hubs of economic activities are fast catching up with the developed economies in terms of global trade and investment performances. The major trends driving this growth are changing policy environments, a growing middle class that expects fair social and economic policies, technology transfers, robust domestic demand, and rapid mass urbanization amongst others.

The world economy has been witnessing rapid changes and one of the most important of these changes is the growing share and increasing role of developing economies. India and Africa are today playing an active role in the global economy. Many of the economies within Africa are outpacing economies anywhere else in the world.

Africa has emerged as one of India’s most important development partners. India’s economic engagements with African countries has been vibrant, extending beyond trade and investment to technology transfers, knowledge sharing, and skill development. India has always expressed optimism regarding the potential of the African continent and has seen itself as a significant stakeholder in Africa’s development.

India and Africa can gain tremendously from each other, by promoting bilateral economic ties in a sustainable way. India and African countries should work together to impart stability to the global economy and sustain growth in the two economies by leveraging resources, large unsaturated demand, economies of scale and growing income levels.

In recognition of the growing importance of India-Africa ties and prospects for closer development cooperation between India and Africa, the Third India-Africa Forum Summit would open new gates of partnerships for the two upcoming regions of the world.

Ranjeet ChaturvediCo-Chairman, International Affairs Committee for Africa

Acknowledgements

PHD Chamber lauds the initiative taken by the Hon’ble Prime Minister of India to build economic co-operation through strengthening South–South Cooperation as now emphasis lie on diversifying our trade basket and to transform the direction of trade.

I would like to express my sincere gratitude to the Ministry of External Affairs, Government of India for giving PHD Chamber of Commerce and Industry an opportunity to be a partner in this historic event.

My sincere thanks to Mr. Navtej Singh Sarna, Secretary (West), Mr. Syed Akbaruddin, Additional Secretary & Chief Coordinator (India-Africa Forum Summit), Mr. K Nagaraj Naidu, Director (ITP) and their teams for their cooperation and guidance at every step of this summit.

I also thank RNCOS E Services Pvt. Ltd. for their efforts in producing this report on understanding the Indian Infrastructure and Healthcare Sectors and how Africa would gain from the Indian expertise, particularly the success stories under the PPP model.

I commend and appreciate the tireless efforts of the PHD International Affairs Committee for Africa team led by Ms. Shabnam Pareek, Secretary, International Affairs and assisted by Mr. Abhishek Banwara (Deputy Secretary), Ms. Aarushi Gautam (Assistant Secretary) & Ms. Komple Sharma (Executive Officer) in organising the exhibition and seminar on the side-lines of the Third India-Africa Forum Summit.

I would also like to thank the exhibitors at the Exhibition for showcasing India’s strengths and contribution in economic development of Africa in the Infrastructure and Healthcare sectors.

PHD Chamber has always acted as a catalyst in the development of the nation. I hope this report will enlighten the stakeholders about the untapped potential for India and Africa.

Saurabh Sanyal Secretary General

11

Africa is considered to be a land of opportunities. The region has emerged as one of the major commerce partner for India. This sanguinity is fueled by the fact that Africa is a natural resource rich continent, having a middle class population larger than that of India, increasing per capita income and favorable political changes. All these factors suggest that Africa is all set for an extraordinary journey towards economic expansion. For India, Africa represents a significantly gigantic and less explored market as the continent offers a huge market for Indian manufacturing goods like pharmaceuticals and automobiles. India, on its platter, has enormous expertise in the healthcare, energy and Infrastructure sectors. Consumer spending in Africa is poised to reach US$ 1.8 Trillion by 2020.

Modi government’s initiatives such as building Smart Cities, Digital India and transforming India into World’s Manufacturing Hub, social welfare schemes such as “Indradanush” which aims to immunize all children against preventable disesases can be a great learning opportunity for Africa to implement some of the successes in their countries.

Owing to world class engineering and technological advancement, the infrastructure sector in India has seen significant growth in the recent years. There have been major developments in infrastructure in terms of construction of highways (the Golden Quadrilateral), Airports (Indira Gandhi International Airport) and Biotech parks (Shapoorji Pallonji). On the other hand, air and road transports in Africa are expensive; connections are patchy, and unsafe. Also, their ports are not well developed to attract calls from foreign shipping lines. These aforementioned challenges require a significant amount of work. Leading Indian infrastructure companies should develop several highways and roads in a number of African countries to improve connectivity.

The Indian Energy sector is responsible for the growing industrial base, urbanization, as well as improvement in the standard of living. Various development projects have been undertaken by the government and private players in India such as Electricity Distribution - North Delhi, National Hydrogen Energy Roadmap and Rooftop Solar PV System. Conversely, Africa is far behind India in terms of electricity generation, in spite of plethora of fossil fuels and renewable resources. The African nations suffer from huge power outages and poor backups. India should make investment in Africa’s energy sector to help Africa reduce its dependence on imports.

Similarly, healthcare sector in India has successfully implemented PPP projects for remote healthcare (telemedicine network) and primary healthcare (ambulatory services), particularly to provide healthcare services to the people living in rural areas in the country. India has become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. On the other hand, healthcare facilities in Africa are poor to the extent that medical facilities are not available to the people living in tribal areas.

Indian companies/universities/hospitals can supply the required products like generic pharmaceuticals, and services including healthcare, and technological support, to the citizens of African nations. There exists a huge potential for mobile health. India should expand its presence in the continent through Pan Africa e-network used for providing tele-medicine and tele-education facilities to the African nations by deploying more hospitals to the existing network.

Introduction1

The Group comprises of the following

companies :

Lucky Exports

Expotec International Pvt. Ltd.

Coppice Technologies Pvt. Ltd.

Contact us at: LOGIX TECHNO PARK, TOWER – C,

GROUND FLOOR, PLOT NO – 4 & 5,

SECTOR - 127, NOIDA (U.P) – 201301 (INDIA)

PHONE NOS. - (91) (120)-4745200/201;

FAX: (91) (120) 4745233,

EMAIL: [email protected]

Web: www.luckygroupcompanies.net

Expotec International Pvt. Ltd., a Lucky Group Company, is one of India’s leading Engineering, Procurement and Construction (EPC) Contracting Company providing Design, Engineering, Procurement, Construction and Commissioning services to the needs of discerning clientele worldwide.

With the synergy of the vast engineering expertise, available resources and latest technologies in diverse realms, theCompany’s multi-discipline expertise is ably serviced by its well experienced professionals under strategic business units such as :

Industrial Projects DivisionEnergy DivisionTransportation & Infrastructure DivisionAgro Technology DivisionEducation & Healthcare DivisionInformation Technology

International Presence

Benin, Burkina Faso, Chad, Ethiopia, Eritrea, Ghana, Guinea Conakry, Ivory Coast, Lao PDR, Lesotho, Madagascar, Malawi, Mali, Myanmar, Russian Federation, Rwanda, Sudan, Senegal, Sierra Leone, Tanzania, Togo, Uganda, United Arab Emirates, Zambia

13

Infrastructure Sector

Infrastructure sector is an essential driver for the Indian economy. The sector is highly accountable for impelling India’s overall development. It receives intense focus from the Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, telecom and urban infrastructure development.

Public expenditure on infrastructure in India in terms of percentage of GDP has increased consistently since 2008. In 2014, the infrastructure expenditure was estimated at around 10.1% of the total GDP as compared to that of 7.54% in 2008. The government of India is expected to rely heavily on the private sector for both capital and expertise, with PPP projects being the favored route for both parties in the coming future.

India’s infrastructure is the backbone of India’s overall growth and development. The Indian government continues to provide its strong support for the development and progress of this sector. The Indian road network of 33 lakh kilometers is the second largest in the world. In the recent years, massive road development projects undertaken by private companies and foreign investors throughout the country have resulted in the creation of new roads and highways that have been built to accommodate multi-lane systems.

India’s civil aviation sector is on a high-growth path. India aims to become the third-largest aviation market by 2020 and the largest by 2030. Total passenger carried in June 2015 has increased 13% YOY. The private sector is being encouraged to become actively involved in the construction of airports through different Public Private Partnership models, with substantial state support in terms of financing, concessional land allotment, tax holidays and other incentives. FDI inflows in air transport between 2000 and 2015 stood at US$ 573.18 Million.

Source: Planning Commission

Figure 2‑1: Core Infrastructure Investment in Eleventh Plan (2007‑2012)

Electricity

Roads & highways

Railways

Irrigation

Water supplyPorts

40%13%

13%

25%

7%2%

2

14

India Africa Aligning for the Changing Global Business Dynamics

Additionally, due to the high growth and expansion in IT, the telecom sector has opened up for privatization thereby making it a highly competitive sector. Almost everyone, including rural sections of the population have more than just basic telephone accessibility these days.

Africa - Current Status & ChallengesAfrica’s infrastructure sector has reported new frontiers of growth in the recent years backed by the sound economic policies, debt relief, stronger institutions and high investments. Africa’s investment in infrastructure accounts for more than 50 % of the recent improvement in economic growth in Africa, and it has the potential to achieve even more. Despite its colossal mineral and other natural resources, Africa has serious infrastructural shortcomings across all the subsectors: energy, water, sanitation, transportation, and communications technology.

In most African countries, particularly the low income countries, infrastructure is a major constraint on doing business, and reduces firm’s productivity by around 40%. Additionally, power emerges as the most restrictive factor in Africa, as it reduces the productivity of manufacturing sector in the continent.

Additionally, air and road transports in Africa are expensive; connections are patchy, and unsafe. In many countries, road maintenance remains inadequate. Only 30% of the rural Africans have access to roads. Further, the ports in the continent have been largely deregulated, many African countries maintain high port tariffs that discourage traffic and increase costs. Other operational and regulatory bottlenecks also slow traffic through Africa’s ports. Many are not large enough to attract direct calls from international shipping lines, underscoring the importance of developing regional transshipment hubs. Policy solutions include adopting a landlord port system that embodies international best practices. However, India can help Africa to develop its overall infrastructure by collaborating with leading Indian engineering and consulting companies that can develop world class infrastructure. Indian construction companies can deploy significant investments in construction domain.

Mega PPP Projects in Infrastructure Sector as Success Stories MetrosDelhi MetroThe total distance covered by Delhi Metro has increased from 25 km in 2002 to 208 km till September 2015. The system has been certified by the United Nations as the first metro rail in the world to get “carbon credits for reducing greenhouse gas emissions" and helping in reducing pollution levels.

Bangalore MetroIt is a major environment friendly addition to the Bangalore City as it significantly contributes to the reduction of carbon emissions. The first phase of its network consists of two corridors: Purple line running east-west and a green line running north-south. 19.1 km of the 42 km phase-1 is operational currently and the rest is under construction.

Mumbai MetroThe Metro Master Plan for Mumbai Metro has been prepared to provide a rail based mass transit facility to people residing in the areas that are not connected by existing Suburban Rail System so as to enable them to reach the stations within the distances of 0.5 to 1 km.

15


The rail system will provide proper interchange facilities for connecting neighboring areas of Thane, Navi Mumbai, Vasai, Virar etc.

AirportsCochin International AirportIt is the first airport in the country which would be operating on solar power. It is expected that when the photovoltaics (PV) panels laid across 45 acres near the cargo complex become functional, Cochin airport will have 50,000 to 60,000 units of electricity per day to be consumed for all its operational functions, which will technically make the airport "absolutely power neutral".

Chhatarpati Shivaji International Airport (CSIA) – MumbaiModernization and redevelopment of GVK CSIA, Mumbai is a reflection of India’s rapid growth. Its direct impact has been seen in an increase in jobs and income directly originating from construction or its operations. During the year 2014-15, GVK CSIA is expected to have contributed 3.5% to Maharashtra’s GDP, and 0.5% to the country’s GDP, with a total income of INR 38,900 crore (US$ 6 Billion). Additionally, the new integrated Terminal 2 at the CSIA increases the airport’s capacity to service 40 Million passengers and one Million Tons of cargo annually.

Indira Gandhi International Airport T-3 Terminal- DelhiIn the year 2010, it became India's and South Asia's largest aviation hub. Also in the same year, during the Commonwealth games, the airport saw 244,795 aircraft movements and handled 473,218 Metric Tons of cargo. In 2015, Airport Council International (ACI), the only global association of world airports, ranked the IGI Airport as the best in the world among those handling 24-40 Million passengers annually.

Roads and HighwaysGolden QuadrilateralIt is the largest highway project in India and in the year 2009, the four-laned highways of Golden Quadrilateral were converted into six-lane highways. Districts that lie zero to 10 km from the its network experienced a substantial increase in the output of organized manufacturing sector.

The Yamuna Expressway ProjectThe expressway included the building of new six lane roads, extendable up to eight lanes, thereby reducing the travel time to only 100 minutes, which was earlier nine to ten travelling hours by road. The total length from Zero Point Greater Noida up to Agra is 165.5 Km.

Container TerminalsNhava Sheva International Container Terminal (NSICT) project included construction of a two-berth terminal, reclamation of 20 hectares of area for container yards, installation of requisite container handling equipment and other facilities, with a projected capacity of 0.6 Million Twenty Foot Equivalent Unit (TEU) containers per annum.

Biotech ParkShapoorji Pallonji Biotech Park was set up to identify and develop the facilities for biotech entrepreneurs. About 17 companies have already set up their units at the Park,

16


making an investment of about INR 400 crore (US$ 61 Million). Several states have started following suite and are making conscious efforts to create a conducive environment to attract entrepreneurs to set up their units and leverage on the vast talent pool and rich biodiversities in their respective areas.

RailwaysIn 2015, India proposed an ambitious rail budget, proposing to invest almost US$ 16 Billion in rail projects. In 2014, it had liberalized the sector to permit foreign direct investment of up to 100% across a range of rail assets. Additionally, the High Speed Rail Corporation of India Limited was incorporated in October 2013 for high-speed rail projects.

ADD_2.indd 1 19-10-2015 16:58:53

19

Energy Sector

India has emerged as one of the fast growing economies in the world, having recorded an annual average growth rate of 8% during the last four years. The energy sector holds the key in accelerating India’s economic growth. India’s energy sector has a mix of all the resources available, including renewables. Coal is the leading source of energy and its dominance in the energy mix is likely to continue in foreseeable future. In the year 2014, India’s coal accounted for 56 % of the total energy demand.

Source: Ministry of Statistics and Programme Implementation (MOSPI)

Figure 3‑1: Per Capita Energy Consumption in India (Mega Joules), 2008‑2014

India’s core strength in energy sector lies in renewable source of energy. The Indian power sector has achieved a lot over the last decade in the areas of policy reforms, private sector participation in generation and transmission and new manufacturing technology and capabilities. The State governments have strengthened their alliances with more private sector participants in order to promote growth in this sector. Bharat Heavy Electricals Limited (BHEL) is the country’s largest energy and power infrastructure provider and continues to undertake huge efforts to meet the nation’s demands in this sector.

In the 12th five year plan, India has planned to add close to 75 GW of power generation capacities. The huge capacity addition plan also offers opportunity for developing evacuation capacities and supply related OEMs like conductor manufacturing, insulator manufacturing, tower fabrication and EPC.

India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. Additionally, around 293 global and domestic companies have committed to generate 266 GW of solar, wind, mini-hydro and biomass-based power in India over the next 5–10 years. The initiative would entail an investment of about US$ 310-350 Billion. Also, a joint Indo-US PACE Setter Fund has been established, with a contribution of US$ 4 Million from each side to enhance clean energy cooperation.

15400 1584018040 18480 18920 19800 19360

2008 2009 2010 2011 2012 2013 2014

3

20


Africa - Current Status & ChallengesAlthough the African continent is well endowed both with fossil fuels and renewable resources, these are not evenly distributed, creating windfall profits for some countries and exacerbating the crisis in others. Chronic power problems impede growth and productivity in more than 30 African countries. Inadequate generation capacity, limited electrification, low demand for power, unreliable service, and skyrocketing prices cause serious bottlenecks in the power sector.

24% of the population of sub-Saharan Africa has access to electricity as compared to 40% in other low income countries. Excluding South Africa, the entire installed generation capacity of sub-Saharan Africa is only 28 GW, equivalent to that of Argentina. Also, African manufacturing enterprises experience power outages on average 56 days per year. As a result, firms lose 6% of sales revenues in the informal sector.

Wind and solar power generation projects are also dependent largely on subsidies and government support. The majority of its resources are underutilized due to shortage of skilled manpower and advanced technology. Therefore, Indian companies have vast opportunities to explore the underutilized resources of the continent which could benefit both the regions in future.

Mega PPP Projects in Energy Sector as Success Stories

Electricity Distribution - North DelhiThis project has successfully reduced the power outages in North Delhi. These have come down from up to five hours a day to nearly zero. Since 2002, the project has brought aggregate technical and commercial (AT&C) losses down from 53% to 12%. The cost of distribution has reduced from 122 paise per unit in 2003, to 2 paise per unit 2012, despite double-digit inflation, hikes in salaries and other operational expenses.

Energy Efficient LED Street Lights in Agartala City This initiative has saved 875 KW of total energy per day in the city. The government’s immediate goal is to generate two Trillion Units (kilowatt hours) of energy by 2019. This

Source: IBEF

Figure 3‑2: Energy Consumption Pattern in India (2014)

CoalOil

Natural gas

Hydro electric

Renewable Nuclear energy

56%28%

7%

5%

2% 2%

21


means doubling the current production capacity to provide 24x7 electricity for residential, industrial, commercial and agriculture use.

Renewable EnergyRenewable energy is becoming a mainstream source of power across the world. Continued technological advancement, reduced cost of modules and investment in utility has helped reduce the cost of renewable energy. Some of the mega PPP projects in the renewable energy sector in India are: Hydrogen power generation station at various dams, Installation of Windmills, National Hydrogen Energy Roadmap, Rooftop Solar PV Systems Project, Water supply and management etc.

National Hydrogen Energy RoadmapThe project was undertaken to reduce India’s dependence on imports of petroleum products, promote the use of diverse, domestic and sustainable new and renewable energy sources and promote the use of hydrogen as a fuel for transport and power generation. After the success of Indian Oil H-CNG dispensing station at the Faridabad R&D Centre, IOCL set up another H-CNG dispensing station at its retail outlet at Dwarka, Delhi in the year 2009.

Solar EnergyRooftop Solar PV System reduces the requirement of land for addition of solar capacities, dependency on grid power and diesel generator dependency. Numerous states in India have already adopted this system, with the first in the row being Gujarat, which initiated the 5MW Rooftop Project in Gandhi Nagar, providing better access to power for an estimated 10,000 people. Besides adding power generation capacity, the project reduces more than 7 Million Metric Tons of greenhouse gas emissions annually.

Wind EnergyInstallation of windmills was proposed by Indian Railways in collaboration with various private players in 2013 to generate electricity by installing a 25 MW wind energy plant near Jaisalmer in Rajasthan. The Indian railways use over 4,000 MW power to operate its network. Installation of windmills will reduce railways’ energy dependence from state-owned power distribution companies by developing large scale in-house capabilities that would also help in reducing the overall energy bill from current levels of INR 8,700 crore (US$ 1.3 Billion) annually.

Biomass Power The Biomass Power Generation Project was started in 2010 by the Punjab Energy Development Agency (PEDA) in collaboration with various private players to generate power in an environmental friendly manner, in various districts of Punjab. Punjab has substantial availability of Biomass/Agrowaste, which is sufficient to produce about 1000 MW of electricity. PEDA has planned to develop some of the available potential talukas/tehsils with the aim to promote and install biomass/agro waste based projects. PEDA has so far allocated 30 sites/tehsils for setting up of total 332.5 MW capacity Biomass/Agrowaste based power projects under three phases.

23

Healthcare is one of India’s largest and crucial sectors as it generates huge revenue and employment. It comprises hospitals, medical devices, clinical trials, telemedicine, health insurance and medical tourism. The healthcare sector in India is growing at a rapid pace due to its strengthening insurance coverage, services and increasing expenditure by public as well private players. In 2008, the overall Indian healthcare expenditure was US$ 45 Billion and had grown to US$ 81.3 Billion in 2014, at a CAGR of around 10.4% during the period 2008-2014.

Healthcare expenditure is a crucial expenditure for any country and the per capita expenditure on health in India has been increasing since 2008. The growth in per capita healthcare expenditure has provided a strong tailwind to the overall healthcare sector in the country, having increased by 42% in 2013 as compared to that of 2008. Public expenditure on health in India in terms of percentage of GDP has not increased in the last couple of years.

In 2013, the healthcare expenditure was 4% of the total GDP. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health.

The Indian healthcare sector is split into five segments: Hospitals, Pharma, Medical Equipment & Suppliers, Medical Insurance and Diagnostics. In 2012, the healthcare sector in India generated its maximum revenue from hospitals, which are further segmented into government and private hospitals.

The Indian healthcare sector is backed by the large pool of well trained professionals, doctors, ample research and development programmes. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.14 Billion between 2000 and 2015.

Healthcare Sector

Source: IBEF

Figure 4‑1: Healthcare Expenditure in India (Billion US$), 2008‑2014

2008 2009 2010 2011 2012 2013 2014

45.051.7

59.568.4 72.8 77.0 81.3

4

24


Source: IBEF

Figure 4‑2: Break‑up of the Healthcare Sector (2012)

In the last decade, public sector in India has gained momentum with the adoption of the Millennium Development Goals (MDGs) as the government set target to reduce the maternal mortality rate by three quarters between 1990 and 2015 to eliminate the spread of HIV/ AIDS, malaria and other major diseases. It is noteworthy that Polio has already been eradicated in India and initiatives have already been taken to eradicate Tuberculosis (TB) from the country.

Africa - Current Status & ChallengesSub-Saharan Africa claims 11% of the world’s population and accounts for 24% of the global disease burden. In Sub-Saharan Africa it is anticipated that the demand for health care is likely to reach a market value of US$ 35 Billion by 2016. This surge in demand and ensuing growth has resulted in the creation of colossal opportunities for the healthcare sector players. With an estimated 500,000 - 650,000 hospital beds to be built in the next decade, and the resulting demand in hospital equipment, medical devices and pharmaceuticals, the healthcare sector in the Sub-Saharan African continent is poised for substantial growth.

There are many diseases which are prevalent in African nations and often prove fatal when they are not treated swiftly and efficiently. Some of these diseases include tuberculosis and HIV/AIDS. Other diseases such as African sleeping sickness, are specific to the African continent. Particularly, Africa has been hardest hit by the HIV/AIDS, although in the recent times on account of meliorated access to anti-retroviral treatment, the HIV/AIDS incidence rates have started plummeting. Nevertheless, the death toll of AIDS still claims nearly one Million lives every year in sub-Saharan Africa. On the other hand, parasitic disease such as Malaria is also widespread and leads to death of one African child every 30 seconds. Malaria is the leading cause of death amongst children below 5 years of age in many African countries. Moreover, Polio, now eradicated from several parts of the world, is still endemic in Nigeria and outbreaks reportedly occur in other African nations as well.

Mega PPP Projects in Healthcare Sector as Success Stories PharmaceuticalsJan Aushadhi Scheme The prices of medicines at Jan Aushadhi Stores are around 5 to 10 times less than that of market price. The number of medicines listed for sale at the Jan Aushadhi stores has

Hospitals

Pharma

Medical equipment & suppliers

Medical insurance

Diagnotics

71%

13%

9%

4%3%

25


increased from 319 in 2008 to 504 in the year 2015. Jan Aushadhi Stores have been opened across the States of Punjab, Haryana, Odisha, Andhra Pradesh, Rajasthan, Delhi, Uttrakhand, West Bengal, Jammu & Kashmir, Himachal Pradesh, Jharkhand and the UT of Chandigarh.

2015- The Year of API - Make in IndiaThis initiative encourages Indian players to manufacture API in India rather than relying on imports. The Government is setting up the National Institute of Pharmaceutical Education and Research at 6 new places across the country. This is being done to strengthen the skill base and fill the gap in research and development of APIs.

Remote HealthcareTelemedicine is one of the key initiatives to improve healthcare services for the people living in rural parts of India. It improves access to quality specialty care and reduces both time and cost, improving the quality of health care through timely diagnosis and treatment. The most important aspect of tele-medicine is the digital convergence of medical records, charts, x-rays, histopathology slides and medical procedures (including laboratory tests) conducted on patients. Some of the mega PPP projects undertaken in Telemedicine field are as follows:

Karnataka Integrated Tele-medicine and Tele-health Project (KITTH) for Car-diac careIt is an on-line health-care initiative in Karnataka for cardiac care using ISRO satellite. This project functions in the Coronary Care Units (CCU) of selected district hospitals that are linked with the Narayana Hrudayalaya hospital. Each CCU is connected to the main hospital to facilitate investigation by specialists after ordinary doctors have examined patients. Since 2002, over 53,000 patients have been treated in the remote locations.

Telemedicine Centers in Haryana and Rajasthan for Cancer and Ophthalmo-logical TreatmentTelemedicine centres were opened in Gohana in Haryana and in Kaithun in Rajasthan in 2007 by the state governments of Rajasthan and Haryana in collaboration with Sir Ganga Ram Hospital (SGRH), Delhi. It is an initiative to provide primary healthcare and treat and examine the eye problems and cancer among women in the remote areas of Haryana and Rajasthan through satellite courtesy the Indian Space Research Organization (ISRO).

Telemedicine Centre in Odisha for Diabetic and Oncological careThe global pharmaceutical giant Biocon collaborated with Odisha Trust of Technical Education and Training (OTTET), Planning Commission and Public Health Foundation of India in 2014, to establish eHealth centres as well as diabetic and cancer centres in the under-served areas of the State. The eHealth centres are ICT-based establishments linked with PHCs to augment existing health infrastructure.

Primary Health CarePrimary Healthcare is the first level of care provided by health services and systems with trained personnel. It includes health promotion, illness prevention, treatment and care of the sick, community development, and advocacy and rehabilitation. Some of the mega PPP projects undertaken in Primary healthcare field are as follows:

26


108 Emergency Ambulance ServiceThis initiative provides emergency response services, particularly attending to health situations relating to pregnant women, neonates, parents of neonates, infant and children. The initiative has now been spread to 29 states/UTs. Additionally, the number of ambulances has increased from 101 in 2008 to 649 in 2014 and the total emergency cases addressed by the service have increased from 42,343 in 2009 to 56,970 cases in 2014.

Mobile Health Vans in Uttrakhand Mobile vans are set up to improve access to health services for people living in hilly areas, who do not have access to nearby healthcare facilities. These vans are fitted with medical equipments to provide health services including RTI and STI diagnosis, IUCD insertion, general physician consultation, immunization, obstetric and gynecological examination, antenatal and postnatal care, blood and urine tests, X-ray, ECG, ultrasound and immunization.

Primary Healthcare Centres in GujaratThe focus of the initiative is to provide primary healthcare services, especially to women, children & elderly. These services are strongly supported by a well-equipped modern laboratory, X-ray and ultra-sonography units along with operation theatres and appropriate blood storage facility.

The Group comprises of the following

companies

Lucky Exports

Expotec International Pvt. Ltd.

Coppice Technologies Pvt. Ltd.

Contact us at: LOGIX TECHNO PARK, TOWER – C,

GROUND FLOOR, PLOT NO – 4 & 5,

SECTOR - 127, NOIDA (U.P) – 201301 (INDIA)

PHONE NOS. - (91) (120)-4745200/201;

FAX: (91) (120) 4745233,

EMAIL: [email protected]

Web: www.luckygroupcompanies.net

Lucky Exports, a Lucky Group Company, is one of India’s leading Engineering, Procurement and Construction (EPC) Contracting Company providing Design, Engineering, Procurement, Construction and Commissioning services to the needs of discerning clientele worldwide.

With the synergy of the vast engineering expertise, available resources and latest technologies in diverse realms, theCompany’s multi-discipline expertise is ably serviced by its well experienced professionals under strategic business units such as :

Industrial Projects DivisionEnergy DivisionTransportation & Infrastructure DivisionAgro Technology DivisionEducation & Healthcare DivisionInformation Technology

International Presence

Benin, Burkina Faso, Chad, Ethiopia, Eritrea, Ghana, Guinea Conakry, Ivory Coast, Lao PDR, Lesotho, Madagascar, Malawi, Mali, Myanmar, Russian Federation, Rwanda, Sudan, Senegal, Sierra Leone, Tanzania, Togo, Uganda, United Arab Emirates, Zambia

For more information contact: www.invest.mp.gov.in

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} Lines of Credit: The Government of India (GOI), in 2003-04, formulated the Indian Development Initiative (IDI), now known as Indian Development and Economic Assistance Scheme [IDEAS] with the objective of sharing India’s development experience by extending concessional Lines of Credit (LOCs) routed through EXIM Bank to developing partner countries towards creating socio-economic benefits in the partner country. More and more African countries should reap benefit under this initiative.

} Leading Indian Construction Companies Should Make a Move: African companies by collaborating with leading Indian engineering and consulting companies can develop world class infrastructure. These companies can deploy significant investments to construct roads, rail lines and ports in various African nations.

} Focus on Challenging Infrastructure Projects: Taking example from RITES and WAPCOS (for establishing railway corridors and water resource management respectively), more public sector firms can execute some of the most challenging infrastructure projects in Africa.

} Signing MoUs/BITs and Preferential Agreements: More and more Indian firms/hospitals/institutions etc. should sign MoUs with African their counterparts, so as to facilitate the delivery of healthcare, infrastructure, energy, technology and other much required services and products. Furthermore, government on both sides should sign additional treaties, as it cushions the reliability, trust, financials, and other trade related aspects for traders across the countries. So BITs can certainly afford and provide the protection needed by Indian companies looking to invest in other African countries. Apart from BITs and MoUs, preferential trade agreement is another way of facilitating trade between the continent of Africa and India. Moving in the same line, both India and Africa agreed for early finalization of the India and SACU preferential trade agreement in order to secure the economic progress of both the developing regions against fluctuations in the Western countries. Such agreements are likely to expedite the cooperation in areas including infrastructure and human resource development, thereby enhancing economic ties.

} Implementation of Energy Efficient Projects: In order to iron out bottlenecks of Africa’s energy sector, African nations, with the help of Indian companies, can take crucial steps for reducing power cuts and enhance system reliability in a cost effective manner which can further lead to an increase in manufacturing output. Many public sector firms can follow suit of ONGC and CIL (for production of natural

India-Africa Strategic Partnership: Some Specific Areas of Cooperation

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gas and coal respectively) and can successfully execute energy efficient projects in Africa.

} Establishment of Healthcare Institutions/ Colleges/ Hospitals: More number of medical colleges and hospitals can also be established to have an ample supply of medical professionals and healthcare services as there are many diseases which are prevalent in African nations and often prove fatal as they are not treated swiftly and efficiently in the existing hospitals.

} Enhance Telemedicine Network: Major hospitals of India can be empanelled and more remote/mobile healthcare centers can be established in order to enhance the telemedicine network in Africa. Additionally, there exists a huge opportunity in terms of e-health as the number of internet users is increasing on the continent. The requirement for content development, mobile/tab apps, real time telemedicine devices, and network setup is substantial as it can prove to be a time leap for the African nations.

Head Office: 3/101, Kaushalya Park, Hauz Khas, New Delhi-110016.Tel. : +91 11 43577777 I Email : [email protected]

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India Africa Aligning for the changing global business dynamics

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