GE’s Jeffrey Immelt: Why Jobs Expansion in India Is a ‘Win-Win’

[OhioChick]

Posted on September 28, 2011

Jeffrey Immelt, chairman and CEO of General Electric, is a frequent visitor to India and optimistic about the country’s future. During a visit to the country earlier this week, Immelt noted that “people are concerned around the economy slowing down from 8% to 7.4%, honestly, it doesn’t sound bad to me at all.” He went on to add that all of GE’s businesses have a growth momentum in India.

While he was tightlipped about GE’s revenues in India, Immelt noted that GE India is among the three fastest-growing countries within GE worldwide. John Flannery, president and CEO, GE India added: “Jeff’s mandate to us is to grow 30% year on year and we are on track to achieve this.”

During his visit, Immelt announced that GE is setting up a multi-product manufacturing facility in Pune, near Mumbai, at an investment of $200 million. This facility will be spread over 68 acres and will have an employee pool of around 2,000. It is expected to give a significant boost to GE’s presence in the country. Immelt pointed out that the focus of GE in India is to constantly increase the localization of products — ensuring that the products in the India portfolio are built around Indian customers, their needs, specifications and price points. The setting up of the manufacturing facility in Pune, he said, is a further step towards this.

Other multinational companies are on a similar track. Korea’s Samsung, for instance, recently announced an investment of $70 million to triple the capacity at its mobile phone manufacturing unit in Noida, near New Delhi. Announcing the company’s fresh investments, J.S. Shin, president & CEO of Samsung South West Asia said: “India is one of the top three mobile markets for Samsung in the world and we stand committed to this market and our Indian consumers. Given the strong potential of this market, we are working on consistently strengthening our presence in the country through a very innovative mobile portfolio as well as enhanced manufacturing and R&D operations.”

More: http://knowledgetoday.wharton.upenn.edu/2011/09/ges-jeffrey-immelt-why-jobs-expansion-in-india-is-a-win-win/

Isn't this Obama's "economic recovery" guy?

[DJ13]

1. Isn't this Obama's "economic recovery" guy?

Yes he is, and he's working very hard at promoting increased employment....... in India, and China.

[OHdem10]

2. Immelt has said that when he has to expand into other countries

he will also expand jobs here in America. He also
said that he does not want his generation to be the
generation to leave America in shambles. He emphasised
that it was a mistake to have changed the American
Economy to a SERVICE ECONOMY. "America can not be
sustained by a Service Economy. He was speaking of
the need to get our Mfg base up to at least 13-15%

We will have to see if there is openings in America
when he does set up the new endeavor in India.

[Bake]

3. So THAT'S why he moved GE Medical to India?

To boost employment in the U.S.? Sure. Right, Jeff.

Bake

[tsuki]

8. He moved radiology to China along with the research funds.

http://articles.boston.com/2011-07-26/business/29817324_1_ge-healthcare-x-ray-business-china-last-year

[PA Democrat]

4. Edit- Dupe.

[PA Democrat]

5. GE has cut 34,000 jobs since Immelt took over

http://www.huffingtonpost.com/2011/01/21/obama-picks-jeffrey-immel-ge-jobs-overseas_n_812502.html

<snip>

As the administration struggles to prod businesses to create jobs at home, GE has been busy sending them abroad. Since Immelt took over in 2001, GE has shed 34,000 jobs in the U.S., according to its most recent annual filing with the Securities and Exchange Commission. But it's added 25,000 jobs overseas.

At the end of 2009, GE employed 36,000 more people abroad than it did in the U.S. In 2000, it was nearly the opposite.

[dmallind]

6. So - nobody wants a US company to get the profits from Indian business then? nt

[Angry Dragon]

7. Just because the headquarters are in the US does not really

make it an American company
If you read the article they have an Indian company over there
the profits stay there
and if they bring the money here they want to only pay 5%
but Ge paid no corporate tax and in fact got a rebate on taxes
so it really cost you money