Uday Kotak Urges Young Entrepreneurs to Build Businesses Over Trading
At the recent Chasing Growth 2025 investor event, Uday Kotak, Founder of Kotak Mahindra Bank, highlighted a concerning trend among young entrepreneurs in India. He observed that many are opting to manage family investments, engaging in stock and mutual fund trading, rather than building operational businesses. This shift, according to Kotak, indicates a decline in the entrepreneurial spirit essential for economic growth.
Call for Active Business Engagement
Kotak emphasized the importance of young business leaders immersing themselves in core business activities. He urged them to channel their energies into creating and expanding businesses, rather than focusing solely on financial investments. This active participation is vital for fostering innovation, generating employment, and sustaining economic momentum.
Concerns Over Market Valuations and Capital Outflow
Addressing the current economic landscape, Kotak expressed apprehension about high stock market valuations and the trend of foreign investors withdrawing funds. He questioned the prudence of encouraging retail investors to continue investing heavily in equities under these conditions. Kotak also noted that foreign entities are capitalizing on these valuations, repatriating profits, which could pose challenges to the domestic economy.
Advocating for a Competitive Industrial Environment
In addition to his concerns about investment behaviors, Kotak warned against excessive protectionism in India’s industrial policies. He advocated for embracing competition to enhance productivity and global integration. While some protection is necessary for emerging sectors, Kotak believes that over-reliance on protective measures can hinder innovation and long-term competitiveness.
A Broader Vision for India’s Economic Growth
Kotak’s insights reflect a broader vision for India’s economic development, emphasizing the need for a diversified and competitive industrial base. He calls for a balanced approach that encourages young entrepreneurs to engage in business creation and expansion, while also fostering an environment where industries can thrive through healthy competition. This strategy, according to Kotak, is essential for ensuring sustainable and inclusive economic growth in India.
