Uday Kotak, the newly elected president of industry association CII, said that the society is going through a decisive turn and that it is time for Indian industry to change itself and invest with positive attitude to build a self-reliant India. He said that the Indian industry should take advantage of the opportunities created by the Kovid-19 crisis and low-debt entrepreneurs should not hesitate to take new and bold decisions to invest in new strategic areas.
Buffer fund raising advice
Uday Kotak is also the managing director of Kotak Mahindra Bank, a leading private sector bank. He advised Indian industry to take help of capital market and raise buffer funds to survive in this challenging time. “With the Kovid-19 epidemic we will now see a world where there will be significant consolidation … and fewer players are expected to remain in most areas,” he told PTI-language in an interview. He said that this is the time for India and Indian entrepreneurs to adopt a positive attitude and added that he is very excited by the Prime Minister’s call for a self-reliant India.
Indian industries suffered due to excessive debt
He acknowledged that poor corporate governance and excessive debt have caused damage to Indian industries in the past, but now is the time to take fresh decisions about investment because the poor elements in the functioning of the corporate sector are now almost clean Has been done. He said, “I believe that in today’s time the operating costs of businesses and companies are relatively low and the ones with low debt are perfectly suited to take advantage of the opportunities that we have.”
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He said that it is time to revive some of the closed assets and give them renewed attention and in such a situation it is an opportunity to invest when long term interest rates are coming down. About self-reliant India, he said that it is very important to increase investment in social sector including healthcare, education, environment and rural infrastructure. He said that investment in health services needs to be increased from 1.3 per cent of the gross domestic product (GDP) to five to 10 per cent.
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He said that Indian entrepreneurs will have to define future investments and move in that direction. “Historically, we are measuring investment in a narrow range, such as auto capacity and steel capacity,” he said. These are all necessary, but now we need to prioritize healthcare, education, nature and investment in rural India.
This is how India will become self-sufficient
Kotak stressed that investment is needed to promote the development of the country, which will create a self-sufficient India. He added, “The second part of self-reliant India is important, which is about becoming self-reliant and competitive and connecting with the world.” So I don’t see any contradiction between self-reliance and competition, we should focus on both. He said, “This is the implicit message of the Prime Minister and it is necessary for us to follow this path because the chances of redefining our history are rare, and we are at such a turning point.”