BackECONOMY
'Shock coming, prepare for the worst': Uday Kotak on India impact of US-Iran war
Industry leader Uday Kotak warned that India must brace for lasting changes and energy shocks as geopolitics shift due to the US-Israel war on Iran. He said the global order is moving toward a 'tribal' mindset and emphasized India's heavy dependence on imported oil, making the economy vulnerable to price shocks, inflation, and financial instability. Kotak urged readiness and cautioned that the shock is imminent unless the Iran conflict resolves soon.
Why It Matters
The warning highlights potential macroeconomic risks for India—inflation, currency stability, and financial stability—impacting policy and business planning.
Timeline
1 Event
Kotak warns India to prepare for energy shocks amid US-Iran conflict at CII summit
May 12, 2026
Speaking at the CII Annual Business Summit 2026 in Delhi, UdayKotak said India should brace for lasting changes amid shifting geopolitics and energy shocks as the US-Israel war on Iran continues. He noted that while there has been no clear transmission of energy prices over the last two months of the Middle East conflict, a big impact is expected soon. Kotak described the current global order as moving toward a 'tribal' mindset and cautioned that India’s heavy dependence on imported oil (over 85%) makes the economy vulnerable to global price shocks, which can affect inflation, the rupee, and financial stability. He urged readiness rather than waiting for the shock, stating that the shock is coming unless the Iran war stops soon, and reflecting that hopes since February 28 have persisted.