"India Powers Philips' Global Growth"

In an exclusive interview with BW Businessworld's Rohit Chintapali, Philips CEO ROY JAKOBS discusses global economic outlook and the company's strategic focus on leveraging India's innovation and AI capabilities. Excerpts

- Rohit Chintapali

With talks of potential federal rate cuts and signs of easing inflation, how would you assess the current state of global markets from a global CEO perspective?

If I look at the market, I think there are two perspectives. We see an improvement compared to last year, and we expect that to continue. However, there is still a lot of volatility and differing geographical trends. In India, growth remains strong, but neighbouring China faces challenges. North America is picking up nicely with a strengthening economy, while Europe is still slower in growth. Overall, global growth is more modest than in a booming economy, still influenced by inflation and interest rates. But with those trending in the right direction, we can see this reflected in the strengthening of the global economy, and that is something we can build on.

Let’s talk about Indian economy’s resilience, even with global market fluctuations in recent years. Since inaugurating this PIC campus here last year, what key factors strengthened your belief in India, and what motivated your strong commitment to the country?

India has several fundamental drivers that contribute to its strength and ongoing growth. These include a growing population, increasing education, rising wealth, and overall prosperity, which are strengthening the economy and evolving the ecosystem. Additionally, global trends, particularly in AI technology, support India’s role as a key player in the global talent pool and economy. These factors together favour India’s continued strong development.

You inaugurated this campus last year with a focus on innovation. How has the emphasis on innovation developed over the past year? What was the initial motivation behind this focus, and how has it manifested since last year?