Joining the debate on deliverables of the Narendra Modi government on economic front, ace banker Uday Kotak has said that industry and market expectations need to come down from their “sky high” levels and get more attuned to the reality.
Kotak also lauded the government’s ‘minimum government and maximum governance’ policy and its commitment to improve ease of doing business, saying that these are “two wonderful philosophies” but right execution on the ground would be key to their success.
“The fact about markets is, markets became euphoric, and were well ahead of reality… Reality is better than it was one year go, but expectations of one year ago have to be tempered to the fact that they were sky high,” said Executive Vice Chairman and Managing Director of Kotak Mahindra Bank.
Kotak, however, exuded confidence that the economy was “on the right track”, unlike some sections of India Inc which have begun to talk about disillusionment with the government.
Quite a few industry leaders, including eminent banker Deepak Parekh, have voiced their concern in the recent past that nothing much has changed on the ground, while senior BJP leader and former minister Arun Shourie has also said that the promised turnaround in economy has not happened.
Alluding to recent correction in indices, Kotak said the “expectations are getting more in tune with the reality as (it) is.”
“Gap between too high expectations versus a steadily better reality is getting bridged… The real economy will continue to show a growth but the gradient will be gradual but more sustainable and markets have to adjust this fact,” he said.