GE set to invest $2 bn in core sector | business | Hindustan Times
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GE set to invest $2 bn in core sector

US conglomerate GE is set to invest $2 billion globally towards infrastructure, a chunk of which would come to India. With the global downturn deepening, the company is expected to increase its focus on infrastructure business, reports Mahua Venkatesh.

business Updated: Feb 07, 2009 10:19 IST
Mahua Venkatesh

US conglomerate GE is set to invest $2 billion globally towards infrastructure, a chunk of which would come to India. With the global downturn deepening, the company is expected to increase its focus on infrastructure business.

“We will continue to focus on our infrastructure business and though we cannot say what percentage of this amount would be directed towards the India market, it would be a sizeable one,” John G Rice, vice chairman, GE told Hindustan Times.

Investment in infrastructure is crucial and the government is committed to continue funding for infrastructure, he said.

The government has announced a series of fiscal measures to shore up depressed demand and boost growth in the broader economy through higher public spending.

Housing and infrastructure sectors have been singled out for special attention as these can raise demand for goods among sectors like cement and steel. They can also drive consumption growth through greater income and additional employment generation.

India Infrastructure Finance Company (IIFCL) has been allowed to access in tranches an additional Rs 30,000 crore through tax-free bonds that would assist in funding of projects worth Rs 75,000 crore.

“Many countries have made significant cuts in the area of infrastructure which is foolish,” Rice said.