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Reasons why GE cannot make $6 billions from India in 3 to 4 years
Kartik Mathur
Oct. 2, 2009

GE Chairman and CEO Jeffery Immelt said that the firm's overall business in India is around $3 billion and has been growing substantially despite difficult global economic environment.

GE today said it expects to double overall business revenue from the country to $6 billion in the next three to four years from India.

GE will fail to achieve its $6 billion goal. Here are the reasons: Technology - Indian Gobernment companies will surpass the American tech capabilities. In 3 to 4 years lack of R&D America and equally vigorous R&D uin India will show the real difference.

Energy infrastructure - Russian and Brazilian companies as well as Indian indigenous efforts will not allow GE achieve its goals. Indian political scene is about to change. The political advantage that GE enjoys in India with Sonia Gandhi, Sam Pitroda and company is about to change. This is a sector where GE will face severe compition.

Transportation - Here GE will face severe compition from Japanese and German comaonies. This sector will also be mastered by indigenous companies in India. Aviation - in this sector GE and Boeing will make some headway. But the Russian counterparts are looking for dislodging GE from its share of the pie.

Enterprise solutions - this is a sector where GE will really lose enormously between 2010 and 2015. Indian software comapanies are retooling themselves to create fabulous enetrpise solution. GE and IBM will learn a lesson in three to four years.

Healthcare - Ge will make some headway with bioengineering and computational biology solutions. But Indian conglomerates will be so strong in this field that GE will have little to offer for their hefty price.



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