Banking and finance expert Uday Kotak has developed a financial model through which India can become the world’s largest economy by 2047.
India closes 2023 as the world’s fifth largest economy, with a GDP of more than $3.6 trillion. Banking and finance expert Uday Kotak has advised on how India can stay on track to become the world’s largest economy.
Kotak points out that if this rate remains stable, India will become a $30 trillion economy by 2047.
As part of his ‘end of year thoughts’, Uday Kotak on UNITED STATES. To achieve this, India will need to achieve 9% annual growth, he said.
Kotak wrote about banks, UTI and LIC.”
He added: “Even in the 90s, investing in stocks was still considered ‘speculative’. As a result, companies seeking capital have turned to foreign institutional investors (FIIs). FIIs see the potential and buy up companies while Indian savers stay away. Companies that have raised capital through the Luxembourg Stock Exchange are less well known. Indian capital markets have been exported. ”
Uday Kotak talks about ‘creating sustainable growth’ in India
Uday Kotak, founder of Kotak Mahindra Bank, highlights seven key points to ensure steady growth of the Indian economy over the next decade, focusing on increased investment and debt reduction.
The banker said companies should raise equity capital cheaply for productive use, which will attract more investors and lead to growth in the Indian stock market.
“While we must avoid tax arbitrage on debt, unless the debt market develops, it will be a one-way race,” Kotak said. The current gap between the 39% and 10% top marginal tax rates between debt and equity may be too wide. »
He talked about treating shareholders as partners and suggested reconsidering double taxation of dividends. Low-cost leverage through derivatives can distort financial markets, attracting attention.
Bankers suggest avoiding retrospective taxes and regulatory regimes at all costs. He also highlighted two areas that India needs to focus on for steady growth: acquisition financing and streamlining the IBC/NCLT process.
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