BS Manthan: Uday Kotak to address India's economic growth and challenges

Business Standard is scheduled to host BS Manthan, one of India's biggest thought leadership summits, in New Delhi on February 27 and 28 with policymakers and industry leaders in attendance

As India navigates a complex global economic landscape, the need for strategic foresight and bold leadership has never been more critical. Against this backdrop, veteran banker Uday Kotak, founder and director of Kotak Mahindra Bank, is set to share his insights on India's current economic growth and challenges at the upcoming Business Standard’s annual event BS Manthan on February 27. Known for his candid commentary, Kotak’s address promises to be a thought-provoking exploration of India’s economic trajectory, the risks it faces, and the opportunities that lie ahead.  

 

Business Standard will host BS Manthan, one of India’s biggest thought leadership summits, in New Delhi on February 27 and 28. The annual event will give policymakers and industry leaders a stage to come together and discuss key economic and business challenges, along with opportunities for India’s progress.

 

Speaking at an event last week, Kotak raised concerns about the fading "animal spirits" of India’s economy, hinting at a worrying trend among the next generation of business leaders. “Many in this generation are taking the easy way out,” Kotak observed, emphasising a shift from building and running businesses to managing family offices and investments. He urged young entrepreneurs to channel their energy into creating real-world businesses rather than becoming financial investors too early in life. “Why not start from scratch?” he challenged, emphasising the importance of operational businesses in driving sustainable economic growth.  

 

Kotak’s address is expected to take the audience deeper into these themes, exploring how India can reignite its entrepreneurial spirit and foster a culture of innovation and risk-taking. His call for a cohesive national strategy to counter the ‘vacuum cleaner’ effect of US policies — which are pulling foreign capital away from emerging markets — will likely be a focal point. With the US dollar acting as a magnet for global capital, Kotak has warned of the strain on India’s current account, exchange rate, and liquidity. "The US dollar is acting like a vacuum pump, sucking capital out of emerging markets," he noted last week at another event, underscoring the urgency of a strategic response.  

 

India's external account vulnerabilities will also feature prominently in Kotak’s discussion. With $2.5 trillion in repatriable capital stock — comprising foreign portfolio investments, foreign direct investments, and external commercial borrowings—the risk of capital outflows looms large. 

 

Kotak has cautioned that even a 5 per cent exit of this capital could lead to significant economic repercussions, including depletion of forex reserves and a weaker rupee. “Our policymakers—including the finance ministry, RBI, and Sebi—must develop a cohesive strategy to counter this challenge,” he asserted.  

 

Another critical issue Kotak is likely to address is the relatively high stock valuations in India. While retail investors continue to pour money into equities, foreign companies are capitalising on these valuations to book profits and repatriate funds. Kotak has questioned the sustainability of this trend, urging a balanced approach to equity markets. "Should we continue encouraging retail investors to keep buying?" he asked, highlighting the need for caution in a volatile global environment.  

 

Hence, mark your calendars for February 27 and 28, as BS Manthan convenes at the Taj Palace in New Delhi to ignite conversations that will shape India’s tomorrow. 

Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd