Uday Kotak warns about Swiggy, Blinkit, Zepto, Calls for Competitive Growth and Defense Investment
Uday Kotak raises concerns over Quick Commerce's impact on local retailers, urging Indian businesses to embrace open trade and innovation. Learn why he sees potential political challenges ahead and calls for increased defense spending to secure India's global standing.
Renowned banker Uday Kotak expressed concerns over the rapid growth of Quick Commerce (Q-Com) platforms like Swiggy Instamart, Zepto, and Blinkit, warning of their impact on traditional retail and the potential to spark political debates. Speaking at a CNBC TV18 event, Kotak emphasized that while Q-Com has flourished in India, unlike in many other countries, it poses a serious challenge to local retailers. He noted the need for policy discussions to address this evolving landscape.
Kotak highlighted the broader implications of India’s economic policies, cautioning against overprotecting domestic businesses. "Protectionism can harm long-term competitiveness," he remarked, advocating for Indian businesses to embrace fair competition in open trade. He also underscored the importance of fostering innovation to create globally recognized consumer brands akin to Apple and Unilever.
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On defense, Kotak stressed the strategic need for increased military spending, stating that strong defense capabilities are essential to a nation’s global standing. Additionally, he warned about the potential volatility of foreign investments, urging preparedness for shifts that could lead to significant capital outflows from Indian markets.
The remarks come as India’s Q-Com market is projected to grow exponentially, from $6.1 billion in 2024 to $40 billion by 2030, underscoring the transformative nature of this sector in the nation’s economic landscape.
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