Despite the slowdown, corporate giant General Electric expects to post a healthy growth in revenues in India as public sector investment expands to take the space vacated by a slowdown-hit private sector.
GE India managed revenues of $2.6 billion (about Rs 130 billion) in 2007 and is hopeful of meeting its target of $8 billion (about Rs 400 billion) by 2010. Key projects in the transportation and nuclear power sector are expected to help it reach that target, Vice-Chairman John G Rice told Business Standard in an interview. Excerpts:
What is the purpose of this visit to India?
There is nothing specific. As usual, I wanted to meet the government, our customers and employees.
Which are the big projects you are looking at in 2009?
There are some very important strategic projects. In partnership with Bharat Heavy Electricals, we are competing to supply 1,000 locomotives over 10 years, which would also involve local manufacturing.
There are opportunities in nuclear power, defence, aviation and healthcare. India is among our top five priority markets.
How close are you to actually signing a deal for nuclear reactors? Have commercial negotiations begun?
Not yet. We are close, though not there yet. Even the identification of site has not been done yet. Commercial negotiations will begin only then.
Has the global financial situation and the economic slowdown impacted your revenue growth in India?
We have seen a lot of growth over the last few years. We still expect growth rates to be healthy.
After the various stimulus packages announced by the government, do you see a change in the revenue mix from the private and public sector?
In the medium term, the government will be very important in terms of infrastructure. They will do whatever it takes to stimulate economic growth over the next 12-18 months. What happens after that is unclear. The break between the government and private business is currently 50:50. It will tilt towards the government but by how much, one can't say.
Globally, do you expect infrastructure expenditure to actually increase because of all the announcements of bailout packages?
The announcements are coming. But what follows the announcements? How soon will it reach the drawing board? How soon will it create jobs?
Your comments on the Dabhol plant?
We are working closely with the power ministry and the local team. We understand the strategic importance of Dabhol and want to resolve the issue in an amicable way. If we are responsible, we need to stand up and we will. We have to see if equipment caused the problem. The project was shut down for five years.
