Corporate investments getting concentrated in few groups, govt should encourage flowers to bloom: Uday Kotak

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ALSO READ: China Evergrande shares suspended, China may have some learnings from US, India says Uday Kotak Earlier, Kotak surprised all by stepping down from his executive role four months ahead of the end of the term. He said many corporates are not going ahead with investments and added that we are witnessing 'significant consolidation and concentration' because of this. The concentration can deliver in the short term, but it is in India's long-term interests to have many businesses flourish, he said.

He also listed out sectors in which concentration has grown, and urged the Competition Commission of India to step in the interest of 'fair play'. "We need free and fair markets backed by the policy which allows a competitive marketplace", Kotak said, urging for the fair trade regulator to be more alert. "I would certainly want to see a stronger role of the Competition Commission (of India) to ensure that there is fair play in the marketplace.

You do not want such concentration in a few hands... I think (in) long term, as an Indian, I'd love to see many more Indians succeed," he added. Kotak mentioned that the telecom sector has two-and-half players from 13 in five years, the steel sector has three big companies and aviation is reduced to just two-and-a-quarter players.

He also hinted that it is because of a lack of investments by India Inc. that the country trails China on the trade front, with a net deficit of $100 billion per year. "Why is it that we in India cannot manufacture and find it cheaper to import from China? And that is a question we need to ask our corporates.