Uday Kotak lays out 7 priorities for Viksit Bharat, warns against economic complacency

Veteran banker Uday Kotak on Friday said India’s strong position in the global economy should not lead to complacency, outlining seven priorities including tighter fiscal management, financial-sector reforms and stronger domestic production to help the country navigate a fragile global environment and achieve its Viksit Bharat goal by 2047.

Speaking at a conference of finance ministers and finance secretaries of states and Union Territories organised by the Union Finance Ministry, Kotak said closer coordination between the Centre and states would be critical as global economic and geopolitical dynamics evolve.

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“India's position on the global stage is pretty good, but there is no room for complacency,” he said.

Kotak’s seven priorities for India are fiscal consolidation, strengthening the financial system, leveraging global crises for reforms, boosting domestic production, addressing gold imports, balancing regulation with development, and encouraging creative destruction in businesses.

Kotak flags fiscal deficit, financialisation risks

On fiscal policy, Kotak called for tighter fiscal management, noting that India's consolidated fiscal deficit remains above 7 per cent, compared with 6 per cent in the US.

“Excessive financialisation early in the life of a developing country towards development is something India needs to be careful about,” he said.

Kotak also called for reforms to attract more capital and strengthen India's financial system, while urging policymakers to use global disruptions as opportunities to accelerate structural changes.

Drawing a parallel between the historical expansion of the East India Company and the growing influence of global technology companies and major economic powers, Kotak cautioned that changing global dynamics could pose challenges to national sovereignty and economic independence.

He said India must use these shifts to strengthen its economic resilience and reduce vulnerabilities arising from external dependence.

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Kotak calls for stronger domestic production

Kotak said reducing India's dependence on imports and building globally competitive products and services should remain a key economic priority.

“We as Indians need to create leverage where we produce things, goods, and services which the world wants from us,” he said, citing the potential for India to emerge as a major exporter of products such as flowers.

On gold, Kotak said India needs to find ways to channel household gold wealth into productive economic use while addressing the country's current account challenges.

He also called for a balance between financial regulation and economic development, saying regulators should safeguard financial stability without unnecessarily restricting growth.

Kotak further urged traditional businesses to embrace innovation and adapt to technologies such as artificial intelligence, arguing that creative destruction would be necessary to transform the Indian economy.

He said closer Centre-state coordination would help India withstand the broader challenges facing the global economy as it works towards the Viksit Bharat 2047 objective.