“India mustn’t let a few conglomerates define its destiny,” “we need to see many flowers bloom,” Says Uday Kotak (Image: x.com/ udaykotak)“India mustn’t let a few conglomerates define its destiny, needs broad-based growth,” former MD and CEO of Kotak Mahindra Bank, Uday Kotak, who recently stepped down from the position said. Uday Kotak’s statement reflected the concern that a bunch of business houses and tycoons could be at the front league of India’s success story which, on the contrary, he believed that should not be so. Along with this, he also said that the economy would have to grow faster in order to alleviate poverty from the lives of millions of Indians.
Veteran banker’s statement came as a warning that India should not allow some select conglomerates to “define its destiny” of the country while stressing that the country should go for a broad-based growth where there would be many “winners”. The seasoned Banker’s comments, comes in as an echo of his concerns that a handful of business houses and tycoons could be hijacking India’s economic success story, reported the Business Today.
Mr. Kotak told the Financial times that “we need to see many flowers bloom. And I’m not a believer that a few companies should define India’s destiny,” said the BT. “We need a broad-based growth of the Indian economy, with many winners.” He added that, the Indian economic scene would have to grow faster to lift millions of people out of poverty and into the mainstream category, while adding that a growth of 8-9 percent should be aspired by the country.
At the India Today Conclave 2023, earlier this week, he aired his views, saying that a a consolidation of huge levels has taken place and is continuing to happen bringing in consolidation of business power, which is much different from the consolidation of wealth in few hands. Results could accrue from this model in the short run but more businesses need to flourish in India in the long run.
He said that the Centre was acting in the right manner by unleashing government spending, at the same time he said that an environment should be created for the big decision making by the India Inc in the future. On the government policy, he said that the government “must encourage many flowers to bloom,” and that the policy is not skewed. In order to explain, he took the examples of telecom, steel, and aviation sectors.
“Look at the telecom sector if we met here five years ago, there were 13 players and now at the best, we are two and a half. Let us look at the airline industry, you have consolidated to two and a quarter. Similarly, in the steel sector, two big guys and a lot of small guys,” he had said. Apart from this he called for free and fair markets, with robust policy pillars and a stronger Competition Commission of India (CCI).
Mr Kotak had recently stepped down as the MD and CEO of the Kotak Mahindra Bank after more than two decades with the Bank. Former joint MD Dipak Gupta is the current MD and CEO for the bank until December.
Among banks, the Kotak Mahindra Bank has the fourth largest market capitalisation with an m-cap of Rs. 3.5 lakh crore. It has total assets worth Rs. 6.2 lakh crore which includes bank assets of Rs. 4.89 lakh crore. The Kotak family’s stake in the bank is 26 percent.