Transform healthcare delivery to people: Mukesh Ambani

NEW DELHI: Co-opt rather than give handouts. For India's richest man, Reliance Industries Ltd chairman Mukesh Ambani, that's the model for achieving inclusive growth. And the way to do it is to change CSR (corporate social responsibility) into a "continuous social business through enterprise and entrepreneurship''.

"The purpose of any business cannot be only profit. Profit for the shareholders is important. But unless entrepreneurs have a larger purpose and businesses that change lives of millions of people, a sustainable business cannot be created,'' Ambani told industry captains gathered at Ficci AGM on Tuesday.

Ambani's comments came at a time when industry and the government are engaged in a debate over making it mandatory for firms to spend 2% of their profits on CSR.

The man should know. Last week, he struck a $9-billion deal with British energy major BP that would bring India its biggest FDI. And RIL's gas and oil finds off the Andhra coast is estimated to save India some $9 billion in import bill, money that can take healthcare and education to millions who do not have access.

"Our demographic dividend, the youth and the young, are largely unprotected and uncared for. We will need to radically transform healthcare delivery to all our people... Current food prices justify heavy investment and job creation has to be through agriculture and rural economic growth.''

Calling for increased government spending in healthcare and education, Ambani said that outlays in healthcare formed only 1% of GDP, which needs to grow at least five-folds. "Our demographic dividend, the youth and the young, are largely unprotected and uncared for. We will need to radically transform healthcare delivery to all our people.''

Stating that a large untapped opportunity existed for India to boost its under-leveraged consumer class, Ambani said the country's per capita income is less than $1,000, one-third of China, while its per capita energy consumption is minuscule.

"Less than 1% of our population uses credit cards for transactions and consumer loans are about 10% of the total loan disbursals, representing an under-leveraged consumer class,'' Ambani said.