What radical scheme does Uday Kotak propose for Indian manufacturing?

Uday Kotak suggests a direct government capital-support scheme providing 40% preferred capital at low interest for mid-sized manufacturing projects.

Why is the traditional banking deposit model breaking down, according to Uday Kotak?

Savers are becoming active investors, finding higher yields in liquid funds and debt instruments, making traditional low-cost deposits less attractive.

What is Uday Kotak's view on the rupee's volatility?

Kotak believes the rupee's weakness is primarily driven by capital flows, not by India's core macro-economic fundamentals.

Home / Business and Economy / Kotak: India Needs Manufacturing 'Steroids'

Kotak: India Needs Manufacturing 'Steroids'

19 Jan

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Summary

Uday Kotak advocates a 'steroid-like' capital support scheme for manufacturing.
He warns of a structural breakdown in the traditional banking deposit model.
Rupee's volatility is attributed to capital flows, not macro-fundamentals.

Kotak: India Needs Manufacturing 'Steroids'

Uday Kotak, founder of Kotak Bank and spearheading USK Capital, has outlined a critical 2026 outlook for India, emphasizing the need for a "steroid-like" capital support scheme to revive the crucial middle manufacturing segment. He argues that India must move with speed and purpose in an era of shifting global hard power, embracing self-reliance.

Kotak expresses concern over the structural breakdown of the traditional banking deposit model, noting that savers are migrating to active investment. He believes banks must urgently rethink their business models to compete with fintechs and mutual funds, which have seen their assets under management grow significantly. This shift is driven by higher yields available elsewhere and a more dynamic investor base.