Uday Kotak Warns India On Iran War Shock
Veteran banker Uday Kotak has warned that India must prepare for a possible economic shock from the ongoing US-Iran conflict, saying the impact of higher oil prices and global instability may soon become more visible.
Uday Kotak Warns India Inc
Speaking at the CII Annual Business Summit 2026, Kotak said the direct impact of the Iran conflict had remained limited for nearly two months, but that period may now be ending. He warned that India should prepare for tough times instead of waiting for the shock to arrive.
Kotak said businesses, policymakers and financial institutions must remain alert as the global environment becomes more uncertain.
Oil Prices And India’s Economic Risk
Kotak identified rising oil prices as one of the biggest risks for India. As a major crude oil importer, India remains vulnerable to any disruption in West Asia, especially if the conflict affects supply routes, shipping costs or global energy prices.
A sharp rise in crude prices can increase inflation, widen the import bill and put pressure on the rupee. It can also raise costs for transport, manufacturing and households.
Global Order Moving Towards Uncertainty
Kotak also said the world is moving away from cooperation and towards a more fragmented order. He described the shift as a move from globalisation to a more “tribal” world, where countries focus more on their own interests and control over trade, capital and technology.
He urged India to build stronger domestic resilience and reduce excessive dependence on foreign capital.
India Asked To Prepare For Worst
Kotak’s warning comes at a time when Indian policymakers and businesses are closely watching the Iran conflict, crude oil prices and global market volatility. His message was that India should not assume the crisis will pass quickly, but must prepare for a larger economic impact.
