Introduction

Background
It was in the 1990s that the first economic liberalization policies were initiated by the then Finance Minister
Dr Manmohan Singh to encourage the wake of globalization in India. Since then, the economic condition of
India has significantly increased. Over the years, India has gradually become one of the fastest growing
economies in the world. It has become the 4th largest economy in the world in terms of the purchasing
power parity (PPP). It has been expected that the average yearly economic growth will range between 6%
and 7 %

Due to the high economic growth, there has been rapid progress in the civic amenities. The per capita
income has increased which has improved the standard of living of the masses. As economic growth is a
great factor behind the improvement of the poverty, the rise in the economic condition of India had a
favorable impact on the reducing the rate of poverty in the country.
Meaning
Globalization (or globalisation) describes a process by which regional
economies, societies, and cultures have become integrated through a global
network of communication, transportation, and trade. The term is sometimes
used to refer specifically to economic globalization: the integration of national
economies into the international economy through trade, foreign direct
investment, capital flows, migration, and the spread of technology.[1] However,
globalization is usually recognized as being driven by a combination of
economic, technological, sociocultural, political, and biological factors.[2] The
term can also refer to the transnational circulation of ideas, languages, or
popular culture through acculturation.

According to the Oxford English Dictionary, the word 'globalization' was first employed in
1930, to denote a holistic view of human experience in education.[3] An early description of
globalization was penned by the American entrepreneur-turned-minister Charles Taze
Russell who coined the term 'corporate giants' in 1897,[4] although it was not until the 1960s
that the term began to be widely used by economists and other social scientists. The term has
since then achieved widespread use in the mainstream press by the later half of the 1980s.
Since its inception, the concept of globalization has inspired numerous competing definitions
and interpretations, with antecedents dating back to the great movements of trade and empire
across Asia and the Indian Ocean from the 15th century onwards.[5]

The United Nations ESCWA has written that globalization "is a widely-used term that can be
defined in a number of different ways. When used in an economic context, it refers to the
reduction and removal of barriers between national borders in order to facilitate the flow of
goods, capital, services and labor... although considerable barriers remain to the flow of
labor... Globalization is not a new phenomenon. It began in the late nineteenth century, but it
slowed down during the period from the start of the First World War until the third quarter of
the twentieth century. This slowdown can be attributed to the inward-looking policies
pursued by a number of countries in order to protect their respective industries... however,
the pace of globalization picked Gay up rapidly during the fourth quarter of the twentieth
century..."[6]
Scope of Globalization

• There is an International market for companies and for consumers there is a wider range
of products to choose from.
• Increase in flow of investments from developed countries to developing countries, which
can be used for economic reconstruction.
• Greater and faster flow of information between countries and greater cultural interaction
has helped to overcome cultural barriers.
• Technological development has resulted in reverse brain drain in developing countries.

Drivers of Globalization in India

Human Resources: Apart from the low cost of labour, there are several other aspects of human
resources to India's favour. India has one of the largest pool of scientific and technical
manpower. The number of management graduates is also surging. It is widely recognised that
given the right environment, Indian scientists and technical personnel can do excellently.
Similarly, although the labour productivity in India is generally low, given the right environment
it will be good. While several countries are facing labour shortage and may face diminishing
labour supply , India presents the opposite picture. Cheap labour has particular attraction for
several industries.

Wide Base: India has a very broad resource and industrial base which can support a variety of
businesses.

Growing Entrepreneurship: Many of the established industries are planning to go international

in a big way. Added to this is the considerable growth of new and dynamic entrepreneurs who
could make a significant contribution to the globalisation of Indian business.

Growing Domestic Market: The growing domestic market enables the Indian companies to
consolidate their position and to gain more strength to make foray into the foreign market or to
expand their foreign business.

Niche Markets: There are many marketing opportunities abroad present in the form of market
niches. (A niche is a small segment of a market ignored or not properly served by large players).
Such niches are particularly attractive for small companies. Several Indian companies have
become very successful by niche marking.

Expanding Markets: The growing population and disposable income and the resultant
expanding internal market provides enormous business opportunities.
Transnationalisation of World Economy: Transnationalisation of the world economy, i.e., the
integration of the national economies into a single world economy as evinced by the growing
interdependence and globalisation of markets is an external factor encouraging globalisation of
India business.

NRIs: The large number of non-resident Indians who are resourceful - in terms of capital, skill,
experience, exposure, ideas etc., is an asset which can contribute to the globalisation of Indian

business. The contribution of the overseas Chinese to the recent impressive industrial
development of China may be noted here.

Economic Liberalisation: The economic liberalisation in India is an encouraging factor of

globalisation. The delicensing of industries, removal of restrictions on growth, opening up of
industries earlier reserved for the public sector, import liberalisations, liberalisation of policy
towards foreign capital and technology etc., could encourage globalisation of Indian business.
Further, liberalisation in other countries increases the foreign business opportunities for Indian
business.

Competition: The growing competition, both from within the country and abroad, provokes
many Indian companies to look, to foreign markets seriously to improve their competitive
position and to increase the business. Sometimes companies enter foreign market as a counter -
competitive strategy, i.e., m fight the foreign company in its own home market to weaken its
competitive strength.

.
1. One of the major forces of globalization in India has been in the growth of
outsourced IT and business process outsourcing (BPO) services. The last few years
have seen an increase in the number of skilled professionals in India
employed by both local and foreign companies to service customers in the US
and Europe in particular. Taking advantage of India’s lower cost but educated
and English-speaking work force, and utilizing global communications
technologies such as voice-over IP (VOIP), email and the internet, international
enterprises have been able to lower their cost base by establishing
outsourced knowledge-worker operations in India.
Sector Analysis
•

Objectives of Globalization of Indian healthcare

a) Reverse brain drain in healthcare

b) Increase the share of healthcare as a percent of GDP

c) Create the Wal-mart of healthcare from India

d) Enhance the productivity of the workforce and make our economy more vibrant

e) Have a multiplier effect on many sectors of our economy

The healthcare industry in the country, which comprises hospital and allied sectors, is projected
to grow 23 per cent per annum to touch US$ 77 billion by 2012 from the current estimated size
of US$ 35 billion, according to a Yes Bank and an industry body report published in November
2009. The sector has registered a growth of 9.3 per cent between 2000-2009, comparable to the
sectoral growth rate of other emerging economies such as China, Brazil and Mexico. According
to the report, the growth in the sector would be driven by healthcare facilities, both private and
public sectors, medical diagnostic and pathlabs and the medical insurance sector. According to
the report, diagnostics would contribute US$ 2.5 billion to the healthcare industry by 2012.

An increasing number of public and private healthcare facilities are expected to propel demand
for the industry, accounting for another US$ 6.7 billion in this period.

As per a study by an industry body and Ernst & Young, India would require another 1.75 million
beds by the end of 2025. The public sector however is likely to contribute only around 15-20 per
cent of the required US$ 86 billion investment. The corporate India is therefore, leveraging on
this business potential and various health care brands have started aggressive expansion in the
country. Some of the companies that plan to increase their footprints include Anil Ambani’s
Reliance Health, the Hindujas, Sahara Group, Emami, Apollo Tyres and the Panacea Group.

Sahara Group is planning several healthcare projects such as a 200-bed multi-specialty tertiary
care hospital at Gorakhpur in Uttar Pradesh, a 1,500-bed multi super-specialty, tertiary care
hospital at Aamby Valley City and 30-bed multi-speciality secondary care hospitals across all the
217 Sahara City Homes Townships.

Meanwhile, Artemis Health Sciences (AHS), a health care venture of the Apollo Tyres Group, is
also planning to establish four to eight multi-specialty hospitals in Punjab, Uttar Pradesh,
Madhya Pradesh, Rajasthan and Haryana over the next three years.

The rural healthcare sector is also on an upsurge. The Rural Health Survey Report 2009, released
by the Ministry of Health, stated that during the last five years rural health sector has been added
with around 15,000 health sub-centres and 28,000 nurses and midwives. The report further stated
that the number of primary health centres have increased by 84 per cent, taking the number to
20,107.

Health Insurance

The Indian health insurance market has emerged as a new and lucrative growth avenue for both
the existing players as well as the new entrants. According to a latest research report "Booming
Health Insurance in India" by research firm RNCOS released in April, 2010, the health insurance
market represents one the fastest growing and second largest non-life insurance segment in the
country. The Indian health insurance market has posted record growth in the last two fiscals
(2008-09 and 2009-10). Moreover, as per the report, the health insurance premium is expected to
grow at a CAGR of over 25 per cent for the period spanning from 2009-10 to 2013-14.

According to the Yes bank and an industry body report published in November 2009, the
medical insurance sector would account for US$ 3 billion by 2012.

As per data released by the Department of Industrial Policy and Promotion (DIPP), the drugs and
pharmaceuticals sector has attracted FDI worth US$ 1.70 billion between April 2000 and April
2010, while hospitals and diagnostic centres have received FDI worth US$ 786.14 million in the
same period.

• Healthcare major, Fortis Hospitals plans to invest US$ 53.7 million, to expand its
facilities pan-India.
• Asia's leading hospital chain, Columbia Asia Group, which already has six hospitals in
the country, plans to ramp-up its operations in India by opening eight more multi-
speciality community hospitals with a total capacity of 800 beds by mid-2012. The group
has earmarked a total investment of US$ 177.1 million for the 14 hospitals.
• Narayana Hrudayalaya has inaugurated the phase-I of the 5,000-bed health city in
Hyderabad. The company plans to expand its presence to seven more cities to take the
total number of hospitals to 14 in the next 2-3 years.
• Australian medical devices company, Cochlear Ltd plans to set up its wholly-owned
subsidiary in India, to provide better patient and product support. The company also plans
to invest about US$ 15 million over five years.
• US-based venture capital firms GTI Group and New Enterprises Associates (NEA) have
jointly invested US$ 21.13 million in Bengaluru-based day-care surgery centre Nova
Medical Centers' expansion plans.

Medical Tourism

According to a new report published by RNCOS, titled "Booming Medical Tourism in India"
released in September 2009, medical tourism in India has emerged as the fastest growing
segment of the tourism industry despite the global economic downturn. High cost of treatments
in the developed countries, particularly the USA and UK, has been forcing patients from such
regions to look for alternative and cost-effective destinations to get their treatments done. The
Indian medical tourism industry is presently at a nascent stage, but has an enormous potential for
future growth and development.

As per the market research report, India's share in the global medical tourism industry will climb
to around 2.4 per cent by the end of 2012. Moreover, medical tourism is expected to generate
revenue of US$ 2.4 billion by 2012, growing at a CAGR of over 27 per cent during 2009–2012.
The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent in the
forecast period to reach 1.1 million by 2012.

Government Initiative
The Government launched the National Rural Health Mission (NRHM) in 2005. It aims to
provide quality healthcare for all and increase the expenditure on healthcare from 0.9 per cent of
GDP to 2-3 per cent of GDP by 2012.

According to Union Budget 2010-11, the Finance Minister, Mr Pranab Mukherjee increased the
plan allocation for Ministry of Health and Family Welfare from US$ 4.2 billion in 2009-10 to
US$ 4.8 billion in 2010-11.

Moreover, in order to meet revised cost of construction, in March 2010 the government allocated
an additional US$ 1.23 billion for six upcoming AIIMS-like institutes and upgradation of 13
existing Government Medical Colleges.

. Globalization also has a great impact in health care sector where it is improving the relationship

between personnel and the community, where the individual and the community is working hand

in hand in every matters they link to become an effective one. In here, it is fully described that

the relationship between medical team and the community is the relationship between doctor and

patients. In improving and enhancing the quality of health care, it depends the relationship

between the social-economic systems and the social values combination.

Through globalization, there are changes in disease pattern of a certain community.

Globalization has two effects; it may be good or bad to the society. Through the rapid growing of

technologies and new discoveries brought by globalization helps the rapid reduction of

infectious, communicable diseases more specifically vaccine-preventable diseases of children. In

globalization, it improves the quality of the vaccine that serve as the remedy of the

communicable diseases that help many children that belong to poor countries. The potential of

acquiring dengue, malaria, pneumonia, and water related diseases remain rampant for the reason

of some public health environment and sanitation in a certain community is not yet improving. In

the period of the development of economy and society, it increases the population of the

community and new technologies have been discovered. In the discoveries of new and advance

technologies the rampant and most prevalent health problems are sexual transmitted diseases that
include HIV/AIDS, injury, cancer, lungs and heart diseases that cause by vices such as tobacco,

alcohol, and drugs and because also the environment pollution due to globalization.

Thus through the rapid development of society brought by globalization, it creates also the very

complicated problems that needs also a complicated solution. As people in the community, it is

important to adopt the changes in environment and the society, because it brings goodness to our

community where we could live comfortably and be able to relax. This health issues can easily

be solved because of new found remedy to every illness. The only thing that the people should

do is to have self discipline. In which they should to take good care of their self in which can be
achieved through self discipline and with the help of medical team by teaching and orienting the

possible cause that might ha ppen.

Globalization meant that there was now more private participation. This meant that all
inefficiencies were to be corrected and rectified. They reduced the job security and made sure
that only the people who performed had their job. Medical technology from all around the world
was now present in India. Private healthcare centers help the burdened government healthcare
centres and some even extend their reach to the rural areas. Advanced healthcare techniques have
now come to India and it has been helping patients from all over India. Many multinational
companies provide for their employees’ health, saving the government from providing healthcare
to them. The coming of globalization has also benefited the healthcare industry monetarily.

Globalization has also helped India to establish research and development facilities in the
medical fields. This has led to a lot of new innovations in medical equipment, medical
techniques and even medicine as a whole. Globalization has helped the pharmaceutical industry a
lot too. Drugs from all over the world is available in India. Their standards are good compared to
Indian drugs.

Healthcare globalization will positively impact employment across sectors like

manufacturing , R & D, tourism , textiles, hospitality , education , IT, Insurance ,
BPO , Telecom etc , and so one can easily understand the multiplier effect on the
economy in India due to healthcare globalization

While the term Medical Tourism has become really popular and is one of the most frequently
searched terms on top search engines like Google and Yahoo by the people who are exploring
cost effective options for overseas treatment , the word ‘TOURISM’ per se is the last thing on
the mind of most of the patients.. People just want to have a good medical outcome and return
home safely. They could always have a real holiday later with the money saved on medical
treatment in this trip, when they recover, at a destination of their choice

2 percent of them actually went on a vacation post- hospitalization. This is also because the
majority of patients presently choosing to come to India are those who get high end surgeries like
Hip or Knee Replacement, Spinal or Cardiac surgery done

The majority of the patients coming from developed countries like, US, UK and Canada to the
top corporate hospitals in India are now coming here for very advanced surgical procedures.
Most of the doctors at these hospitals have worked for many years at the best institutions in the
West and have been continuing their high quality of innovation, research and developmental
work at Indian hospitals. They also happen to improvise their skills much more than doctors in
the developed world, just because they have to treat a very large number of local patients.

In India, private healthcare accounts for nearly 80 per

cent of the country’s total healthcare expenditure,
although it is more expensive as compared to public
healthcare services.
•The preference for private healthcare can be
attributed to better perceived quality and accessibility.

1 Healthcare expenditure in India is expected to

increase by 15 per cent per annum.
2 This segment is expected to constitute 6.1 per
cent of the country’s GDP and employ around nine
million people in 2012

. Critical Analysis

Case study

As part of their strategy to bring down the cost of group health insurance, some corporates are
planning to assign their employees “health scores.” Apparently, this is being done on the advice
of their health insurance advisors.

According to insurance company officials, the idea is to encourage employees to improve their
lifestyles and promote healthy living. Some insurance consultants have developed tools to assess
employee's lifestyle and arrive at their health score.
A Mumbai-based health insurance broker, Medimanage, is developing a tool using which their
corporate clients can rate the health of their employees.

“Employees will have to answer a set of questions and undergo some tests. After this, they will
get a health score. This will help in increasing the awareness about the need for preventive
measures”, said Mr Sudhir Sarnobat, Director, Medimanage Health Insurance brokers.

Focus on prevention

The need for preventive measures is gaining ground as companies have to shell out more for
getting group health insurance cover. “The situation is such that premiums are going up and the
benefits are being curtailed”, he said.

Companies have shown interest in offering preventive healthcare and wellness. There is a
realisation that this will increase employee productivity and reduce absenteeism, besides
bringing down the health insurance premiums.

Group health insurance premiums have risen by more than 30 per cent in the last one year due to
rising claims, he said.

Medimanage has 52 corporate clients including Citibank, Hexaware Technologies, MphasiS,

Accenture, TCS Eserve and IDBI Fortis Life Insurance. “Many of our clients have shown
interest in the health score,'' Mr Sarnobat said.

Health portal

Medimanage is also planning to start a comparative health portal for retail customers. Using the
site, customers interested in buying a health insurance cover can choose the policy best suited to
their needs.

Similar sites give information such as premium and the coverage of the policy and the treatment
limits. In addition to this information, Medimanage's site will also give details like third party
administrators used by the insurance companies and the network of hospitals in the provider
network.

Recommendations

Creating awareness on Rights & Responsibilities of both doctors and patients is highly required.

Standardization of Cost of the

← Healthcare Providers
Gradation of Health service providers to improve their performance

Pool for Senior Citizen

Compulsory Health Benefits for organized sector

Government role on mass healthcare initiatives to be increased more and more.

References

www.ibef.org

www.wekipedia.org

www.assocham.org

www.who.int