The global economy is on the verge of a significant “shock” as the delayed consequences of the prolonged US-Iran war are set to kick-in now, Uday Kotak, Founder and Director of Kotak Mahindra Bank, warned on Tuesday.
Kotak said businesses and policymakers need to adopt a mindset of ‘strategic paranoia’ and start immediate preparation to survive the downturn in financial stability.
“We haven’t seen the impact of the war in two months, but now it’s coming, and it’s coming big …You are not far away from the shock unless the Iran war stops tomorrow morning. We need to get ready for tough times rather than waiting for the shock to hit us,” Kotak said at the CII Annual Business Summit 2026.
“We should prepare for paranoia before the event,” Kotak said stressing on the need for a low-cost reshaping of the Indian economy and the need for businesses to take the initiative instead of making demands of the government.
“Let’s move as people, businesses, and policymakers to work more than our talk,” he said.
Kotak noted that the world was moving from a collaborative mindset back to pre-1945 tribalism where countries fought for control over trade routes and physical assets. He said the control over tangible assets was getting concentrated in a few hands.
“We need to be strategic and real in this tribal mindset world.. what matters is control over assets, supported by a strong P&L (profit & loss),” he said.
Over the last two days Prime Minister Narendra Modi, too, has been warning citizens of the tough times ahead and asking them to adopt “wartime austerity” to preserve India’s economic resilience.
Speaking in Secunderabad and Hyderabad, the Prime Minister urged citizens to voluntarily reduce fuel consumption, postpone foreign travel and destination weddings, and revive pandemic-era work-from-home practices to insulate the nation from surging energy costs and the disruption of supply lines through the Strait of Hormuz.
Published on May 12, 2026