Uday Kotak, founder and director of Kotak Mahindra Bank, has called for reforms to address India’s high gold imports and their impact on the country’s current account balance. Speaking at a conference of state finance ministers and finance secretaries in Delhi, Kotak suggested setting up a committee to explore ways of meeting household demand for gold while limiting its impact on the external account. He noted that Indian households hold significant wealth in gold, but much of it remains outside productive economic activity. India recorded a current account deficit of around $25 billion in FY26, while gross gold imports stood at about $72 billion. Kotak said that excluding gold, the country would have recorded a current account surplus. He expects the deficit to widen to around $60 billion in FY27 if crude oil averages about $90 a barrel, while gold imports could rise to $88-90 billion. Beyond gold, Kotak highlighted fiscal consolidation, strengthening the financial system, boosting domestic production, balancing regulation with development and encouraging business innovation as key priorities. He also cautioned against excessive financialisation, arguing that financial markets should remain focused on capital formation, liquidity and price discovery rather than trading volumes alone. Kotak further stressed the need for close coordination between the Centre and states and urged policymakers and regulators to use the current economic environment to implement reforms swiftly.
