Uday Kotak Urges India Inc to Move Beyond Comfort Zones for Nation Building

Addressing the annual summit of Confederation of Indian Industry (CII), Kotak said Indian businesses should not merely look to the government for solutions but introspect on their own role in nation building.

"Let's not depend on what the country can do for us. What can we do for the country?" Kotak said, urging industry leaders to become "tougher within ourselves".

Reflecting on the changing geopolitical landscape, Kotak said the world may be entering a phase where crises could trigger "structural change" rather than a return to normalcy, unlike the pattern witnessed over the last 80 years after World War II.

"Every time there's a crisis, things will get back to normal. That's our basic mindset. But pause and ask what if," he said, cautioning that even a small probability of a structural global shift cannot be ignored.

Kotak argued that the world was increasingly reverting to "tribalism", where power and control over both tangible and intangible assets would determine national strength.

"We are seeing raw power becoming the rule of life. That is back to tribalism," he said.

Highlighting the importance of economic resilience, Kotak said countries with strong balance sheets and globally competitive companies would dominate the future world order. Referring to the United States, he said its strength lay not only in the dollar's reserve currency status but in the dominance of its corporations and technology ecosystem.

"The United States is powerful because it has extremely powerful companies. We cannot live our lives without a WhatsApp or a Microsoft or a cloud service or an Apple phone," he said.

Kotak also stressed the need for India to encourage innovation and creative destruction instead of excessive protectionism. Drawing from Hindu mythology, he said India needed more of "Brahma and Mahesh" -- creators and destroyers -- rather than only "Vishnu", the preserver.

"The biggest danger for our country is when there is too much of Vishnu in the total," he remarked.

On the energy front, Kotak called for urgent reforms and faster adoption of renewable and electric mobility solutions. Comparing India with China, he pointed out that nearly 60 per cent of cars in China were electric, while India stood at just around 3 per cent.

"We have to get beyond the mindset of lobbying and protecting individual companies, to saying time has come to protect the country," he said.

Kotak also raised concerns over India's external sector vulnerabilities, warning that higher oil prices and volatile global capital flows could put pressure on the country's economy.

He noted that while India's current account deficit had narrowed to nearly 1 per cent of GDP, a rise in crude oil prices to USD 100 per barrel could widen the deficit sharply.

"We are living in a hostile, tribal world. Therefore, we have to be ready," he said, while pointing to the scale of foreign portfolio and direct investments in India that could potentially reverse during periods of global uncertainty.

Calling for a balance between optimism and realism, Kotak said India must use the current moment to reshape our destiny through strategic thinking, energy security and stronger economic fundamentals.

- ANI