Hinduja asks businesses to diversify to tackle global shock

Davos: As headwinds from China and the US turn the mood gloomy here at the elite World Economic Forum (WEF) Annual Meeting, top NRI industrialist G P Hinduja on Saturday asked corporate leaders to diversify their businesses across sectors and countries to sail through such turbulences.

"There are always two sides to a coin. When problems occur in one sector or in one region, there would be other sectors or countries that would be doing well. Oil price plunge has hit the crude producing nations, but importing countries are benefitting," he said.

Stating that he remains optimistic about Indian as well as the global economy, the Co-chairman of diversified Hinduja Group called for the Indian policymakers to grab the opportunity to grow faster in the wake of prevailing problems in other markets, including China.

"I'm optimistic about two things -- nothing will happen to the economy and the world will sustain. I met finance ministers of Italy and a number of other countries here. Some of them are nervous, some say it is challenging, but if you ask me I am very much optimistic about the Indian and the world economy," Hinduja told PTI here on the sidelines of WEF summit.

Similar sentiments about India were expressed by many Indian and global leaders present at the Hinduja family's annual WEF lunch here, hosted by G P Hinduja, his brother Prakash Hinduja, son Dheeraj Hinduja and daughter-in-law Shalini Hinduja.

A number of Senators and Congressmen from the US said India remains the only bright spot in the current economic environment, while Kenyan Foreign Minister Amina Mohamed invited Indian business leaders to invest in her country.

Hinduja, who is based in London and has been a regular at the WEF meeting, said the fast-paced technology today results in an immediate psychological impact of any development on the stock markets and people everywhere feel they are being hit.

"In 2007-08 crisis, people panicked, but everything later came around. Again when the previous UPA government was nearing its end, people turned very bearish about India and everyone started saying that it would be very difficult for India now.

"Nobody knew that the (Narendra) Modi government will come and bring about a fresh change. Now is the time for India to grab the opportunity. It can be done by improving ease of doing business to attract foreign investors," he said.

Further, he said all BRICS countries except India are facing troubles and Europe is going through bad times.

"People are getting jittery about China, although I personally feel there is not much to worry about China as they have got trillions worth of foreign reserves itself. They may see some correction, but there is not much to worry about," he said.