‘Tougher world outside India’: Uday Kotak’s strong advice to Indians in Diwali message amid US tariffs, global tensions
Billionaire banker and founder of Kotak Mahindra Bank, Uday Kotak, has called for a change in mindset among Indians, emphasizing the need for sustainable business practices amid geopolitical uncertainties and US tariffs.
While expressing his wishes for Diwali 2025 in a video message, Kotak said, “This is the time for every Indian to be paranoid, to think about a more challenging world outside India. We have to step out of our comfort, convenience and comfort zone to build an India and an Indian business that is ready to take over the world.” he said.
“I hope corporate India, where investors have such faith, wakes up to this challenge and focuses on building sustainable companies for the future and the companies improve their earnings over time, so that the current high PE ratios are justified and investors put money into the equity markets,” he added.
Kotak says the world has changed significantly
The geopolitical landscape, tariffs and various conflicts have created uncertainty, but some emerging markets are beginning to recover after years of stagnation, according to Kotak.
“Geopolitics, tariffs, uncertainties and multiple wars have darkened the horizon. Some of the other emerging markets have also rebounded after years of underperformance,” said Uday Kotak.
What did Uday Kotak say about US markets?
The Magnificent Seven have significantly boosted U.S. market returns, but overall growth in other sectors remains slow, according to Kotak.
“US markets continue to be bullish. However, the Magnificent Seven provided most of the returns in the US and the rest of US markets did not grow at the same pace,” he said.
The Magnificent Seven is a group of seven large and influential US technology companies, including Apple, Microsoft, Amazon, Alphabet, Meta Platforms, NVIDIA and Tesla.
What can be expected in Samvat 2082?
Ahead of Diwali, Kotak stated that the year 2081 poses challenges for equity investors and returns are generally low. But on a three-year perspective, returns remain encouraging. Samvat 2081 was a momentous event marked by significant global changes. Stating that we are looking forward to Samvat 2082, he said, “We are waiting for more clarity.”
Meanwhile, he stated that the trend from savers to investors in India will continue for Samvat 2082 as well.
According to Kotak, this trend will continue as significant inflows into mutual funds and equity markets are still evident. Additionally, the current tax regime, which imposes a higher tax on income and a lower tax on earnings, continues to support the shift from savers to investors. Finally, he stated that the government’s GST renewal and zero tax up to ₹ 12 lakh also contributed to this change by stimulating the domestic economy.
The shift from savers to investors continues in India; The COVID-19 pandemic has caused a significant structural change and has rapidly accelerated this trend. According to a Geojit Insights report, there were 4.09 crore demat accounts in India in April 2020, which increased to 14.98 crore in February this year.
