Only few large companies investing; policymakers must push for free & fair market: Veteran banker Uday Kotak
Uday Kotak on Wednesday rued corporate investments getting concentrated in a few groups, and urged the government to «encourage many flowers to bloom». Speaking at India Today Conclave here, the richest Indian banker also said that policy is not skewed, clarifying that he respects the work done by big corporations in creating world-class businesses and specifically named Mukesh Ambani-led Reliance Industries.
«I am saying something which is close to my heart, there is a significant concentration of new investments happening only by a few groups,» Kotak said.
«I am not saying the policy is skewed, my sense is the policy must encourage many flowers to bloom,» he added.
The founder of Kotak Mahindra Bank, who surprised all by stepping down from his executive role four months ahead of end of term recently, 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.
Listing out sectors in which concentration has grown, Kotak urged the Competition Commission of India to step in the interest of «fair play». «We need free and fair markets backed by policy which actually allows a competitive market place», 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.
