Billionaire banker Uday Kotak has said corporate India needs to start focussing on a medium-term outlook instead of looking at their business situation on a quarterly basis.
“It’s important that the private sector changes its quarter-to-quarter psychology and adopts a medium-term strategy instead,” Kotak, president of the Confederation of Indian Industry, told Quintillion Media’s Sanjay Pugalia in an interview. “Along with growth, sustainability is important. Over a longer period, growth needs to be resilient and not volatile.”
This, he said, will also help address a lack of trust in private corporates. “Trust will be built if the private sector looks at the medium term and not the short term.”
Kotak, who is also the managing director at Kotak Mahindra Bank Ltd., said India requires a lot of medium-term investment particularly in areas like education, healthcare, sustainability and nature.
He asserted the Covid-19 outbreak is triggering a lot of consolidation in the Indian industry. “The divide between weak companies and strong companies is getting intense.”
Kotak cited the massive challenges being faced by the airline, tourism and hospitality sectors, adding that the government needs to give these industries a chance to survive. “The hope should be that in six-nine months from now, things will be better.”