In response to the Credit Suisse disaster, Uday Kotak asserts that India can stand out amid the turmoil
Uday Kotak, the founder and CEO of Kotak Mahindra Bank, has expressed his views on the ongoing Credit Suisse crisis and the impact it could have on the financial markets. In his opinion, while the global financial markets continue to experience turmoil, India could potentially stand out as an exception.
Kotak pointed to a number of macroeconomic factors that suggest a positive outlook for India. For instance, the current account deficit is expected to remain below 2.5% in FY23 and dip further below 2% in FY24. This is primarily due to the lower cost of oil, which has been a major contributor to India’s import bill. Additionally, the country has been focusing on increasing its exports, which could further help to reduce the current account deficit.
Despite the challenges posed by the pandemic, India’s economy has shown resilience and the government has taken several measures to support growth. The country has also witnessed a surge in foreign direct investment (FDI) in recent months, which is a positive sign.
Kotak, however, thinks that India must continue to be careful and navigate the difficulties well. In order to do this, the administration will need to keep the political climate steady and concentrate on crucial sectors like infrastructure development and skill development. In order to assist economic growth, the banking industry will also be essential, and Kotak underlined the necessity for banks to exercise caution and manage risks well.