‘Big Shock Is Coming’: Uday Kotak Warns India to Prepare for Economic Impact of US-Iran War
Veteran banker and industry leader Uday Kotak has issued a serious warning about the possible impact of the ongoing US-Iran conflict on India, saying the country should prepare for difficult times ahead rather than wait for the crisis to hit.
Speaking at the CII Annual Business Summit in Delhi, Kotak said India has not yet fully felt the effects of rising global energy prices caused by tensions in West Asia, but the real pressure could arrive soon.
‘Shock is Coming’
According to Kotak, the impact of higher crude oil prices has so far been absorbed by oil companies, helping keep fuel prices stable for consumers. But he cautioned that this cushion may not last forever.
“We have not seen the impact yet. It is coming, and it is coming big,” he said, urging India to be mentally and financially prepared for a tougher phase.
He stressed that India should avoid complacency and instead plan for the worst-case scenario, especially since the country imports more than 85 per cent of its oil needs.
Why India is Vulnerable
If global crude prices remain high or rise further, India could face:
- Higher petrol and diesel prices
- Rising inflation
- Pressure on household budgets
- Weakening of the rupee
- Increased burden on government finances
Kotak said such shocks can affect both ordinary families and businesses across the country.
Need for Financial Discipline
The banking veteran also said India now needs stronger financial discipline from both the government and private companies. He explained that long-term economic strength will depend on how wisely the country uses its resources during uncertain times.
Kotak also criticised the short-term mindset of many businesses, saying companies should think beyond quarterly profits and stock prices and plan for the next three to five years.
Government Reassures Public
Meanwhile, the government has said India currently has enough reserves to manage the situation. Officials stated that crude oil and gas stocks can meet demand for around 60 days, while LPG supplies are sufficient for about 45 days.
India’s foreign exchange reserves also remain strong at over $700 billion.
Prime Minister Narendra Modi has appealed to citizens to adopt austerity measures such as saving fuel, using work-from-home options, and avoiding unnecessary spending like gold purchases.
Opposition Questions Timing
Opposition leaders have criticised the government, saying the warnings about economic strain are coming only after recent state elections. They also questioned whether fuel price hikes and stricter measures may be introduced soon.
Message for Common Citizens
Kotak’s warning is essentially a call for readiness. While panic is not needed, he believes India must stay alert and disciplined because global conflicts can quickly affect daily life through fuel prices, inflation, and economic uncertainty.
News source: Information for this article was gathered from a variety of reliable news outlets.
