Remarks by George Deikun, USAID India Mission Director, at the Business Panel on “The Private Sector and the Fight against HIV/AIDS: The Case of India,” Mumbai

March 13, 2007

Ladies and Gentlemen, let me start by thanking the US-India Business Council, Federation of Indian Chambers of Commerce and Industry, and the Center for Strategic and International Studies for inviting me to speak to you tonight. I would like to give a special welcome to Ashley Judd, Global Ambassador and Board Member of our valued partner, Population Services International. I would also like to acknowledge the leadership of all your organizations in spearheading the private sector’s contribution to the fight against HIV/AIDS in India.

We are at a business panel discussion on HIV/AIDS. You may say, what is different about this one over similar ones held in the past? The answer for me is timing. With a GDP of 9.2%, India is now the second fastest growing major economy and is playing an ever-increasing leadership role in world affairs.

In stark contrast to this economic and political reality is the other India where close to 2.4 million children die from preventable diseases. This is 25% of global child deaths. Despite these health concerns, India spends less than 1% percent of GDP on health. The decision by the Finance Ministry to increase allocations in health and education this year shows that there is an increasing understanding that investments in human capital are central to economic growth.

HIV is no exception. Investments in HIV are more than just investments in health. HIV can cause major damage to economies with far-reaching implications. In high-prevalence countries, HIV/AIDS erodes economic growth through its negative impact on labor supply, productivity and savings. AIDS increases the costs of doing business, especially for smaller businesses in the informal economy.

Despite an HIV/AIDS prevalence rate of less than 1% in the total population, about 5.2 million Indians are living with HIV/AIDS, second in number only to South Africa. The economic impact of the disease in India is growing. We have all heard about some of the successes in fighting HIV in India, but there are new challenges facing all of us. Tamil Nadu has reported a decline in HIV prevalence. At the same time there are new states and rural districts registering new cases at rapid rates. We cannot ignore this trend.

In developing countries around the world life saving treatment with antiretroviral drugs has increased by 800 percent over the last three years. At the same time, less than 10% of Indians who need this therapy are receiving it.

HIV/AIDS is more than just another public health issue to be addressed by Government – today’s discussion is helping to break this dangerous myth. The world has been dealing with this epidemic for over 20 years. We now understand that beating HIV/AIDS must become everyone’s issue.

While prominent Indian business houses, like some of you here tonight, are stepping up to these challenges, there is room for more private involvement. Tata Steel took an early stand in protecting their workforce and I am pleased to see they are receiving recognition for this tonight. Other businesses that have shown strong leadership include Bajaj Auto, Bharat Petroleum, Mahindra and Mahindra, Larsen and Toubro, Ambuja Cement and Godrej Industries. We are grateful for your commitment. I hope that many other companies will follow your lead.

Corporate programs include a range of activities: awareness generation, condom distribution, voluntary counseling, testing and care. However, most of the programs are focused on company workforces and in some cases local communities and therefore reach only a small proportion of India’s workforce.

There are two important interventions that the private sector can make to reach many more in India’s workplace. The first is to support the capacity of small and medium businesses and the informal sector to fight HIV. Second, businesses can renew the focus on HIV prevention in rural areas, particularly among women, where the epidemic is making inroads.

Almost 370 million persons or 93% of India’s workforce is made up of the unorganized sector, many of which are rural-based businesses. We need to engage with these small and medium businesses and the informal sector. These companies lack know-how and resources and are often less aware of the dangers posed by HIV/AIDS. You, as organized companies and leading corporations, can enhance the impact of your interventions by targeting those smaller companies that comprise your supply chains.

HIV/AIDS is a priority for the U.S. Government. Currently, President Bush’s Emergency Plan for AIDS Relief has committed $15 billion to combat the disease. In India, the U.S. spends approximately $30 million annually on HIV/AIDS prevention, care and treatment. Our programs focus on the high prevalence states of Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh. American private foundations such as the Bill and Melinda Gates Foundation and the Clinton Foundation have stepped up as well.

The Indian Government is also doing its part. In April, the National AIDS Control Program, under NACO’s leadership, will enter its third phase with an annual budget of Rs. 969 crores, an increase by over one-third from last year.

Both our governments know that the fight against HIV/AIDS cannot be won by governments alone. In July 2005 a joint statement issued by President Bush and Prime Minister Man Mohan Singh helped to establish the Indo-US Corporate Fund to galvanize the private sector response to HIV/AIDS. So far, the Fund has received over $ 1.3 Million in pledges and projects are beginning to roll out.

But we know we are only looking at the tip of the iceberg – my hope is that many more companies will take advantage of this innovative facility under the able management of ICICI Bank and Nachiket Mor’s leadership.

I am grateful for the commitment that FICCI and PSI have already shown in strengthening public-private partnerships. Under the new $15 Million USAID-supported Connect project, we will support public private partnership activities for HIV/AIDS control and treatment in India. We hope that this program will bring more companies into the fight.

Ladies and gentlemen, every company has the potential to contribute to and be a valuable partner in the fight against HIV/AIDS. We are grateful to those companies that have led the way and look forward to those who will join us in this effort.

Thank you.