Latest News | Only a Few Large Companies Investing; Policymakers Must Push for Free & Fair Market: Uday Kotak
Get latest articles and stories on Latest News at LatestLY. Veteran banker Uday Kotak on Wednesday rued corporate investments getting concentrated in a few groups, and urged the government to "encourage many flowers to bloom".
Mumbai, Oct 4 (PTI) Veteran banker Uday Kotak on Wednesday rued corporate investments getting concentrated in a few groups, and urged the government to "encourage many flowers to bloom".
Speaking at India Today Conclave here, the richest Indian banker also said that policy is not skewed, clarifying that he respects the work done by big corporations in creating world-class businesses and specifically named Mukesh Ambani-led Reliance Industries.
"I am saying something which is close to my heart, there is a significant concentration of new investments happening only by a few groups," Kotak said.
"I am not saying the policy is skewed, my sense is the policy must encourage many flowers to bloom," he added.
The founder of Kotak Mahindra Bank, who surprised all by stepping down from his executive role four months ahead of end of term recently, said many corporates are not going ahead with investments and added that we are witnessing "significant consolidation and concentration" because of this. The concentration can deliver in the short term, but it is in India's long term interests to have many businesses flourish.
Listing out sectors in which concentration has grown, Kotak urged the Competition Commission of India to step in the interest of "fair play". "We need free and fair markets backed by policy which actually allows a competitive market place", Kotak said, urging for the fair trade regulator to be more alert.
"I would certainly want to see a stronger role of the Competition Commission (of India) to ensure that there is fair play in the marketplace. You do not want such concentration in a few hands... I think (in) long term, as an Indian, I'd love to see many more Indians succeed," he added.
The telecom sector has two-and-half players from 13 in five years, the steel sector has three big companies and aviation is reduced to just two-and-a-quarter players, Kotak said.
Kotak hinted that it is because of lack of investments by India Inc that the country trails China on the trade front, with a net deficit of USD 100 billion per year.
"Why is it that we in India cannot manufacture and find it cheaper to import from China? And that is a question we need to ask our corporates. That for all our strong fundamentals, why is it that corporate India is not able to compete with china?" he questioned.
Kotak, who is on the board of the Kotak Mahindra Bank as a non-executive director, said his son Jay may rise through the hierarchy to lead the private sector lender only on merit.
He suggested the RBI to allow Indian banks to do acquisition funding, pointing out that the statute has been as it is since 1992.
Kotak welcomed Ambani-led Jio Financial Services' upcoming entry into the segment, terming the development as a "good thing" which will keep rest of the industry on the edge.
With the threat of artificial intelligence (AI) gobbling up jobs in the future, Kotak said Indian policymakers will have to look at universal basic income to support the population which stands impacted.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)