R. Shankar Raman, President of Larsen & Toubro (L&T), discussed the importance of structural reforms for India’s economy with CNBC-TV18 on the sidelines of the India Business Leader Awards (IBLA) Jury Meet for 2024.
While the government is talking about these reforms, he stressed that it’s crucial for them to be implemented more quickly to support sustainable growth.
Raman reflected on India’s first quarter GDP figures, which showed a 7% growth in manufacturing. Although this is a solid number, it’s slightly lower than the previous quarter. He noted that the slowdown is partly due to the political landscape during a major election, but he believes the focus on reforms is promising.
“The potential for growth is still there, but without a strong foundation, we risk weak and vulnerable progress. If the government can accelerate these structural reforms, India is ready to move forward,” Raman said.
He also addressed L&T’s significant international presence, with 40% of its orders coming from abroad, particularly the Middle East. Despite geopolitical tensions in the region, Raman highlighted that Middle Eastern countries are taking a neutral stance, which is beneficial for business.
“The Middle East is smartly leveraging its oil wealth to invest in renewable energy, creating big opportunities for us. The projects there are often much larger than those in India, and we’re prepared to handle that scale,” he explained.
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Regarding L&T’s guidance of ₹3.33 lakh crore in orders for the year, Raman expressed optimism but acknowledged the challenges posed by the global economic environment. “We’re aiming for a 10% growth, and so far, the trends look promising. However, project orders can fluctuate, so we’ll see how it unfolds,” he added.
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(Edited by : Shoma Bhattacharjee)
First Published: Oct 7, 2024 6:57 PM IST