Banker Uday Kotak has warned that a major shock from rising oil prices is imminent, as the impact of the West Asia conflict has yet to be fully felt by consumers. He said existing inventories and oil companies have so far absorbed the pressure, but rising costs will soon affect households, particularly those with limited incomes who spend heavily on fuel and essential goods.

His remarks come amid expectations of fuel price hikes due to significant under-recoveries faced by oil retailers. Kotak cautioned that unless the conflict involving Iran ends quickly, consumers should prepare for higher expenses.

Kotak also urged India to reduce its reliance on foreign capital and build a strong domestic pool of long-term risk capital to achieve genuine economic self-reliance. He emphasized the need for companies to focus on sustainable growth over three to five years rather than short-term stock price movements and quarterly earnings.

He added that while foreign portfolio investments have historically played a large role in Indian markets, domestic investors have become more prominent since the pandemic. Strengthening domestic private equity, venture capital, and alternative investment institutions is essential to supporting entrepreneurship and long-term economic growth, he said.