'The shock is coming and no one has any answer': Uday Kotak warns Indians to prepare for the worst days after PM Modi’s austerity call

Business tycoon Uday Kotak has issued a stark warning for Indians amid rising tensions in West Asia, saying the real economic pain from the Iran war is yet to hit consumers. Speaking at the CII Annual Business Summit 2026, Kotak cautioned that soaring energy prices could soon trigger a major financial shock for households and businesses already dealing with stretched budgets.

His remarks came days after Prime Minister Narendra Modi urged citizens to conserve fuel, avoid unnecessary foreign travel and postpone non-essential gold purchases as global uncertainty deepens.

Backing the broader message of caution, Kotak said countries must 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,” he said, adding that nations should manage their finances much like a carefully balanced corporate balance sheet.




Kotak warned that the impact of the last two months of conflict in the Middle East has not yet fully translated into fuel prices for ordinary consumers. According to him, oil companies and older inventories have temporarily acted as shock absorbers, delaying the pain.

“But we must prepare for the worst. It is about preparation, be ready for tough times rather than waiting for the shock to hit us,” Kotak said.

He added that consumers with limited incomes would be the hardest hit once fuel prices begin rising sharply, either directly through petrol and diesel costs or indirectly through inflation in fuel-dependent goods and services.

“The shock is coming. And it is coming big. And the consumers have not felt the pressure at all,” Kotak warned.

However, he admitted that the situation could still improve if geopolitical tensions ease quickly. “Unless the Iran war stops tomorrow morning… none of us here has an answer,” he said, referring to the uncertainty surrounding the ongoing conflict.