India remains a bright spot amid geopolitical tensions, says Nadir Godrej

Ahead of the World Economic Forum (WEF) in Davos, NADIR GODREJ, the chairman of Godrej Industries, talks about India remaining in a better position despite the ongoing geopolitical tensions. In an exclusive interview with Sharleen D’Souza, he also speaks about the risks that the world might face if the Israel-Hamas conflict escalates. Edited excerpts:

What is the mood in your group before your trip to Davos?

There are geopolitical challenges, but it does not affect India that much. India is in a bright spot.

What is the update on the group’s investment in energy transition?

In energy transition, we are not undertaking any large projects. But within the group, we are trying to transition to green energy. Some of it is solar, a lot of it is biomass. Our large continuous plan is to do biomass cogeneration and we find that very green and economical. It saves costs and all companies focus on it because the returns on investments made in energy efficiency are very good. 
 

The best way of controlling your carbon emissions is to reduce your energy use and that is very economical. We partake in that a lot. We are working on a project to develop bamboo as solid fuel and see a future in that. It is now cheaper than coal and could be the answer to a lot of environmental problems. It can be grown on wastelands.

Why has India become a favoured investment destination for global investors? Do you think geopolitical events like the Israel-Hamas conflict would impact growth?

There could be some impact, but relatively small for India, unless these geopolitical crises expand —for instance, if the Israel-Hamas war spreads to Lebanon or Iran. The whole world could be  affected. But as of now, India doesn’t seem to be adversely affected.

What are your expectations from the upcoming Budget? What is your biggest worry as an entrepreneur?

 The government has had a very good investment pattern. That will probably slow down after the election. I think gradually the private sector will continue to invest, unless we have a major geopolitical crisis. As an entrepreneur, geopolitical crises and seemingly weakening democracy all over the world remain worrisome.

 What are your investment plans for your overseas businesses?

 Our overseas investments are mostly in Godrej Consumer Products. But in some of the countries there will be smaller investments, particularly in Indonesia and Latin America. Africa needs to stabilise before we invest any further.