‘India can catch up with China in renewable energy sector’

same stage of development as China is.

“India has advantages. Some ecological imbalances have not yet occurred (in India) because we have not yet grown to a level where we would have caused economic imbalances. If we move to replaceable energy now and take small corrective measures, we can do it at a significantly lower cost than other countries,” Kamath said.

The NBD chief said the value of projects funded by his bank in India could reach $800 million to $1 billion.

“The interesting thing is that in a country like India, we are seeing not only the first set of renewable projects that we are talking of, we are also seeing socially good projects. We are looking at projects (that will give) access to rural areas in terms of roads or water.

“These projects like water projects clearly have elements of ecology — there is a sanitation part built in. Clearly, there are certain things which India needs to get on priority (which are) getting address in projects that are coming to us,” he said.

Kamath said the drop in India’s Gross Domestic Product GDP was “transitional”.

“What is required in the Indian context is that the retail customer, retail consumer to grow. In all our economies, I find that where the driver of growth is.

“Government will continue to invest in infrastructure. It will provide momentum but investment in manufacturing happens out of demand – that demand is driven by the lay consumer,” he said, adding that the “lay consumer is driven by interest rates.”

Kamath explained: “This cycle of interest rates is getting to a level where the lay consumer is happy to buy a home, put things into that home, buy transportation equipment and set the wheels in motion.”