ET Awards: ET Awards: India has quite efficiently managed its geopolitics: Uday Kotak


The Indian government has quite efficiently managed its geopolitics that is benefitting the economy, Kotak Mahindra Bank chief Uday Kotak said at the ET Awards of corporate excellence. Kotak also said India needs to focus on growing its middle layer so that small and medium size industries get a boost.

“India has managed its geopolitics and its economics brilliantly,” Kotak said while speaking at the ET awards. “I can’t think about any country which has positioned itself the way India is in this round of geopolitics. One year ago, when we had this big Russia invasion of Ukraine, I was very worried what’s going to happen to India, we got to take sides between Russia and the West. But, India navigated that position, and is today on the global stakes table of geopolitics.”

Kotak said that high value investments are wanting to come to India across sectors.
“The nature of investments is moving to more real economy areas,” said Kotak. “We are talking to some of the largest sovereigns and pension funds around the world. They’re wanting to come in scale and size and are actually looking at a lot more flowers to bloom.”

Kotak also said that India needs more than five or six large business groups to bring in investments and give a filip to the animal spirits.

Kotak added that India is seeing consolidation in several sectors but the acquisition financing for these deals is coming from foreign banks.

“We have seen consolidation in telecom, airlines to some extant, steel and cement,” he said. “We need our banks to be able to finance large acquisition for companies. “If Mr (Sajjan) Jindal wants to make a large acquisition why cannot domestic banks underwrite the risk? Yes we have to be careful and avoid accidents on the road but we should also allow cars to travel faster.”Kotak also chipped in on the debate of US dollar hegemony and said that the position of the dollar as the Reserve currency was being seriously challenged.

“The biggest financial terrorist in the world is the US dollar,” he said. “All our monies in nostro accounts and one morning someone can say that we cannot withdraw and we are struck. That is the strength of the reserve currency. It is India’s chance to take a shot at becoming the reserve currency of the world. Europe is too disjointed, China cannot because of trust issues. It is our chance. If we can build our institutions in the next ten years we can take a shot at becoming the reserve currency of the world.”


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