Mumbai: Uday Kotak, a respected voice across the country, on Tuesday sounded a warning for fellow-Indians.
The founder of Kotak Mahindra Bank said India may not have fully felt the impact of the West Asia conflict, triggered by the US-Iran war, thus far, but tougher days could be ahead.
Kotak warned that rising energy prices could soon begin hurting consumers and businesses, especially those already struggling with limited incomes.
He advised companies and households to prepare for difficult times instead of waiting for the economic impact to become visible.
“We have not seen the impact in the last two months of the Middle East war in terms of energy price transmission. It’s coming. And it’s coming big,” Kotak said at the CII Annual Business Summit 2026.
According to Kotak, Indians have not yet experienced the full effect of rising oil prices because older inventories are still
cushioning the immediate impact. But he believes that the pressure will ultimately hit households by way of costlier fuel and higher prices of daily goods.
“Think about a consumer with limited income, having to spend more directly on fuel and indirectly on other items dependent on fuel. The shock is coming,” Kotak warned.
Kotak stressed that India should not remain in a “comfort zone” amid uncertainty around the globe. All countries must be more cautious and strategic now, he advised.
“My view is we should prepare for paranoia before the event… We must prepare for the worst,” he said.
India’s heavy dependence on imported oil makes our economy vulnerable to global shocks, Kotak observed, referring to the fact that the country imports more than 85% of its crude oil needs.
Just like Prime Minister Narendra Modi appealed to Indians to adopt austerity measures like conserving fuel, avoid unnecessary foreign travel and postpone non-essential gold purchases, Kotak said countries should avoid “living beyond their means” during periods of instability.
“There are some simple things that a country can do, which is to moderate unnecessary consumption,” said Kotak, adding that nations must think carefully about their financial position, much like managing a balance sheet.