A $2.6 billion deal between General Electric (GE) and India's state railway system is expected to boost job creation in Asia's third largest economy, according to the American conglomerate.
Announced earlier this month, GE will supply India with 1,000 diesel locomotives and invest $200 million to construct a manufacturing facility in the eastern state of Bihar, which is expected to be completed by 2018.
"We'll create jobs in that facility for sure but we're also going to create supply chain jobs. We'll qualify suppliers and work with small and medium-sized businesses so there'll probably be six to seven jobs in India for every GE job that gets created in this manufacturing facility," GE vice chairman John Rice told CNBC at the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Manila.
Reportedly 20 years in the making, one of the key catalysts for the realization of the deal was Prime Minister Modi's election last year and his decision to make India a manufacturing base, Rice said.
GE was one of numerous multinationals lauding their respective accomplishments at the Philippines summit.