Kotak Mahindra CEO Uday Kotak on Tuesday said he expects to see interest rates go up this year. but stressed that there is a need to ensure the landing isn't hard.
Speaking at the IBLA Jury – Navigating 2022, he said, "if we get the landing right, rising interest rates and economic growth can go hand-in-hand."
Kotak also gave a thumbs up to the fast-evolving startup ecosystem of India and called it "robust and deep".
"I believe that the startup ecosystem is broadly robust, and deep. What we need to ensure is that as this system evolves and we avoid irrationality. We don't take decisions which don't make sense or common sense and ultimately, a firm must produce cash flows, even if they are in the future. We must also encourage entrepreneurship because change is inevitable. Companies must be able to have a strong business model," he said.
He added that India will see significant consolidation of businesses and startups test big companies over time.
Kotak said he is waiting to see how fast the Fed shrinks its balance sheet. He also said that
"The jury is out, but looks like three to four rate cuts, and how fast the Federal Reserve shrinks its balance sheet, that is an even more important point. But the most important point is besides the monetary side of this, we need to fix the supply side, because if we get the supply side better, then at least we have goods and services at a price," he said,
(Edited by : Aditi Gautam)
First Published: IST