Uday Kotak has warned that India must prepare for long term economic and geopolitical disruptions as rising global tensions and energy shocks begin to reshape the world order.
Speaking at the CII Annual Business Summit 2026 in Delhi, the chairman of Kotak Securities said the ongoing conflict involving the US, Israel and Iran is pushing the global system toward what he described as a more “tribal” mindset. According to him, Indian businesses and policymakers need to focus on strengthening the country’s long term resilience rather than thinking only in short cycles.
Kotak said the full impact of the West Asia conflict has not yet reached ordinary consumers, especially in terms of rising energy prices. He cautioned that the real shock is still ahead and could hit hard in the coming months.
He pointed out that oil companies have so far absorbed much of the financial burden, shielding consumers from the surge in crude prices. However, he warned that such support cannot continue indefinitely given the massive costs involved.
Calling for greater caution, Kotak said India should prepare itself before the crisis deepens rather than reacting after the damage is visible. He stressed that the country’s dependence on imported oil leaves it vulnerable to global price swings that can affect inflation, currency stability and overall economic health.
According to him, India should remain ready for difficult conditions unless the geopolitical tensions ease immediately.
Government highlights rising pressure
Earlier at the summit, Hardeep Singh Puri acknowledged the strain on the energy sector. He said oil marketing companies are currently losing nearly ₹1,000 crore every day in an effort to keep fuel prices stable despite crude oil prices climbing from around 65 dollars to nearly 115 dollars per barrel.
Puri added that under recoveries for the first quarter are expected to touch ₹1.98 lakh crore. Despite the pressure, he said India has managed to maintain uninterrupted energy supplies during a period of intense global disruption.
Kotak also argued that India needs stronger financial discipline across both government institutions and the corporate sector. He said the country’s future economic strength will depend on how efficiently it uses resources and builds durable businesses over time.
He criticised the tendency among companies to focus excessively on short term performance and stock market movements, saying India requires businesses capable of planning with a three to five year perspective.
Government reassures public on supplies
Even as concerns over rising energy costs grow, the government has attempted to reassure citizens about supply security.
Following the fifth meeting of the Informal Group of Ministers chaired by Rajnath Singh, officials said India currently has crude oil and natural gas reserves sufficient for around 60 days, while LPG stocks provide roughly 45 days of cover.
The government also highlighted that India’s foreign exchange reserves remain strong at approximately 703 billion dollars.
At the same time, Narendra Modi has urged citizens to adopt more restrained spending habits. During speeches in Gujarat and Hyderabad, he appealed to people to reduce fuel consumption, consider work from home practices and avoid unnecessary gold purchases to help ease pressure on the economy.
Opposition targets government over austerity calls
Opposition leaders have sharply criticised the government’s messaging.
Senior Congress leader Jairam Ramesh said the Prime Minister’s remarks appeared to signal tougher economic measures ahead, including the possibility of higher fuel prices. He argued that the government was gradually preparing the public to accept stricter cost cutting steps.
Akhilesh Yadav also questioned why concerns over economic strain surfaced only after elections in four states and one Union Territory had concluded.
He mocked the ruling party’s extensive use of chartered flights during election campaigning, asking whether those aircraft had been operating without fuel.
