Emerging nations to lead turnaround: L N Mittal

LONDON: The global economic slump may be showing signs of picking up, led by the growth in emerging economies such as India, but there is need to take a cautious approach as some segments like real estate and consumer credit ���are still to completely flush out their toxic assets���, LN Mittal, chairman & CEO of ArcelorMittal, said in an exclusive interview to ET.

In an hour-long chat at Arcelor-Mittal���s London office in Berkeley Square House, Mr Mittal said: ���... the slowdown in the decline is in itself a big comfort. But we have to continue to monitor and wait���. The green shoots of revival have begun to appear in some parts of the world but it would take at least three to four years for demand to come back to the ���pre-recession levels���. Commodity prices, which reached irrationally exuberant levels, have now begun to show early signs of stability moving towards a more ���rational plateau��� in the near future.

The global recession has not only forced companies to adopt new strategies on cost and customer service, it has changed the rules in the credit market too. ���The easy money era is gone. Now it is selective money era, where projects will be evaluated with different angles and criteria. And that is a good thing. And I think that is the right thing to do, more prudent policies will be there,��� he said.



On the role of the emerging economies, Mr Mittal said while the stimulus packages announced by the various governments have begun playing out with China projecting an 8% GDP growth, the election of the new UPA government in India with a strong mandate has brought in a new air of ���confidence and excitement���. Foreign investors are looking to India as a market, but there is a need to expedite clearances and remove bureaucratic hurdles.

A case in point is the two steel projects being planned by the company in Jharkhand and Orissa. ���The government can speedily approve the projects. The government should start educating different states that these investments are good for them... We are keen to invest in the steel industry. We may read every day that there is a protest or violence. We need to avoid this. We need to educate the people that it is not a landgrabbing scheme. It is a scheme for the future,��� said Mr Mittal.

Asked about the Bathinda refinery that he is developing in partnership with HPCL, Mr Mittal said the project was on schedule and would be completed by May 2011, although the partners are looking for similar tax breaks as provided by the Gujarat government.