Veteran banker Uday Kotak has called for stronger fiscal management, greater manufacturing capabilities and reforms to attract investment as India prepares to achieve its vision of Viksit Bharat by 2047.
Speaking at a conference of finance ministers and finance secretaries of states and Union Territories organised by the Union Finance Ministry, Kotak said India must remain alert to changing global economic conditions despite its strong position internationally.
Drawing comparisons between historical economic influence and the growing role of global technology companies and major economies, Kotak said India needs to protect its economic independence while building stronger domestic capabilities.
Focus on fiscal discipline and manufacturing growth
Kotak identified seven key areas where India needs continued attention, including fiscal consolidation, strengthening financial institutions, using global disruptions as opportunities for reform, increasing domestic production, addressing gold imports, balancing regulation with growth and encouraging innovation.
On fiscal policy, he said India needs tighter control over government finances, noting that the consolidated fiscal deficit remains above 7% compared with around 6% in the US.
“Excessive financialisation early in the life of a developing country towards development is something India needs to be careful about,” he said.
Kotak also stressed the importance of reducing import dependence and creating goods and services that have global demand.
“We as Indians need to create leverage where we produce things, goods, and services which the world wants from us,” he said.
Need for innovation and balanced regulation
Kotak highlighted the importance of bringing household gold holdings into productive economic channels while addressing current account concerns.
He also called for a balanced approach to financial regulation, saying regulators should maintain stability without limiting economic expansion.
The banker urged traditional businesses to embrace technological changes, including artificial intelligence, and said economic transformation requires companies to adapt and innovate.
Kotak said stronger coordination between the Centre and states would help India manage global uncertainties and build a more resilient economy.
