Tata Group has a capital expenditure commitment of $90 billion in India, over the next five years, said N Chandrasekaran, chairman of the salt-to-software conglomerate, during a panel discussion at the World Economic Forum (WEF) in Davos on January 18.
Chandrasekaran said "consumption has been strong" in the country, and the pattern has been seen not only in urban areas but also in rural regions.
Tata Group has been seeing strong growth for the past few years, he pointed out. "Last year, we delivered a growth of 25 percent on a group-wide basis. This year, in all likelihood, we are expecting a 22-23 percent growth," he said, in the panel discussion moderated by CNBC TV-18.
Chandrasekaran added that Tata Group has a "huge capex outlay", spread between businesses such as steel, auto, electric vehicles, renewable energy, batteries, and electronics, among others. "Our capital commitment for the next five years is $90 billion."
'India uniquely positioned'
According to Chandrasekaran, India is "uniquely positioned" amidst the transitions that are shaping businesses across the world.
"There are three global transitions that are happening - AI transition, energy transition and third is supply chain or geopolitical transition, or whatever we call it. India is uniquely positioned for all three transitions. This is because of our strong tech sector, and a huge pool of talent. The number of tech graduates passed out in India is highest, and not comparable to any other country in the world," he said.
There is a "huge opportunity" in India, the Tata Group head noted, adding that the fear of the private sector not coming to India is unfounded. "I don't where this fear that the private sector is not coming is coming from."
In the last five-six decades, India has "demonstrated that we can leverage technology and do developmental projects", Chandrasekaran added. The country's "mindset has changed", he claimed, pointing towards the recent COVID-19 period. At the peak of the pandemic, when other countries "were running after a Pfizer or Moderna", India took the decision to produce the vaccines on a mass scale, he pointed out.
Union Railways, Communication, and IT Minister Ashwini Vaishnaw, who joined Chandrasekaran during the panel discussion, said the government has been focusing on capital expenditure to further boost the growth and employment prospects.
For investment in Railways, the capex was 23 billion last year, and "now it is expected to be in the order of $26 billion," Vaishnaw said. "Same goes with highways and power transmission. This capex is helping employment, as around 1.5 million people are being added to formal jobs every month," the minister noted.
Meanwhile, Union Minority Affairs Minister Smriti Irani said during the discussion that Prime Minister Narendra Modi has re-strategised the development plans over the past eight years to support and empower the vulnerable section of the population. "Social security is being looked as social investment," she said, adding that when there is doorstep delivery of ration to 80 crore people, then it addresses their consumption needs and assists their purchasing power.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
