In a strategic move towards achieving a monumental $30 trillion GDP by 2047, marking Bharat’s centenary of independence, veteran banker Uday Kotak has proposed seven key suggestions. The Founder and Director of Kotak Mahindra Bank highlighted pivotal reforms that transformed Bharat savers into investors.
During the early 80s, Bharat savers favored gold and land over financial assets. Slowly, they shifted towards bank deposits, UTI, and LIC. Equities were viewed as speculative in the 90s, leading companies to seek capital from foreign institutional investors and list on the less-known Luxembourg Stock Exchange. However, the landscape evolved in the early 2000s, with the emergence of mutual funds, cash equities, derivatives markets, and global private equity in India.
As savers transitioned into investors, challenges surfaced for the banking sector, impacting deposits and cost of funds. Kotak emphasizes the need for large corporations to shift meaningfully to capital markets, transforming banks into distributors of corporate debt. The focus must extend to mid-sized corporates, MSMEs, and consumers.
Kotak’s suggestions received recognition from Finance Minister Nirmala Sitharaman, who thanked him for his valuable insights. Former Minister of Railways Suresh Prabhu praised Kotak as an implementer par excellence, acknowledging his thoughtful ideas.
Uday Kotak recently stepped down as the managing director and CEO of Kotak Mahindra Bank. The Reserve Bank of India has approved the appointment of C S Rajan as the new chairman of the bank.
The latest economic indicators show promise, with Bharat’s GDP growth in Q2 reaching an impressive 7.6%, surpassing estimates. The RBI’s forecast for the country’s GDP growth in FY2024 remains at 6.5%, indicating a positive trajectory for the economy.
In the pursuit of a $30 trillion GDP, Kotak emphasizes the importance of avoiding a retrospective tax and regulatory regime. Urgent attention is required for acquisition financing and streamlining the Insolvency and Bankruptcy Code (IBC) and National Company Law Tribunal (NCLT) processes.
Kotak’s comprehensive vision for Bharat’s economic future reflects a blend of historical context, contemporary reforms, and a forward-looking strategy that aims to propel the nation towards unprecedented growth.
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