Uday Kotak shares his thoughts on making India a $30 trillion economy by 2047; here's how FM responded

Veteran banker Uday Kotak has shared his thoughts and suggestions about how to propel India to become a $30 trillion economy by 2047.

In a post on X, Kotak outlined seven pivotal strategies essential for steering the nation's economic trajectory.

Reflecting on the evolution of India's financial landscape, Kotak highlighted the historical hesitancy among Indian savers to invest in financial assets vis-à-vis traditional holdings like gold and land. He emphasized the pivotal shifts from bank deposits, UTI, and LIC in earlier decades to the gradual acceptance of equity investments in the 2000s, marking a transformation from savers to active investors.

Kotak's blueprint for sustained economic growth encompasses critical measures, including averting asset bubbles through comprehensive policy frameworks, enabling companies to access equity at a lower cost for productive endeavors, and addressing issues surrounding tax arbitrage and double taxation on dividends.

He also stressed the need to vigilantly manage low-cost leverage via derivatives, encouraging the corporate sector to transition significantly towards capital markets, and ensuring a conducive regulatory environment.

My year end musings. A Financial Sector Model for India’s dream: 9% annual growth, $30 trillion GDP by 2047.

India is transforming from a nation of savers to investors. The tussle between the saver/ borrower and issuer/ investor model is underway.

In the early 80s, the Indian…

— Uday Kotak (@udaykotak) December 29, 2023

Responding to Kotak's insightful suggestions, Finance Minister Nirmala Sitharaman thanked him for sharing his views and acknowledged Kotak's extensive experience in the financial domain.

Thank you @udaykotak for sharing your views. Your experience in the financial sector is well recognised. https://t.co/P4ZIFHxGmJ

— Nirmala Sitharaman (@nsitharaman) December 29, 2023

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