Uday Kotak sees GDP resilience, warns India not to lower guard
India's economy grew 7.8 percent in the April-June quarter, showing resilience. Veteran banker Uday Kotak noted ongoing geopolitical and economic risks. Unresolved Middle East tensions and AI advancements pose challenges. US bond yields are also creating market volatility for India. Despite these concerns, India has built foreign currency deposits for protection.
New Delhi: Veteran banker Uday Kotak praised India's stronger-than-expected 7.8% GDP growth in the April-June quarter, yet warned the nation should not ease its guard. In a social media post, Kotak highlighted India's resilience during the peak period of the Iran conflict.
The strong GDP growth, at 7.8% for Q1 FY27, came despite global uncertainties and tensions. Kotak cautioned that several risks remain on the horizon, including unresolved Middle East conflicts, rapid progress in artificial intelligence, and volatility in US bond yields.
India's foreign currency deposits serve as a buffer against external risks, Kotak noted. The country has accumulated foreign currency deposits worth approximately $100 billion for maturities of 3 to 5 years.
Nominal GDP reached Rs 88.27 lakh crore in the quarter, up 10.3% from Rs 80 lakh crore in the same period last year. Real Gross Value Added (GVA) also grew 8.2% during the quarter.
Kotak's cautious optimism was tempered by the need for continued vigilance. He stated, "We have work to do, and let us not lower guard." The next quarterly GDP estimates, for July-September 2026, are due on November 30.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
