Jan 23, 2014, 10.22 AM | Source: CNBC-TV18

Fisc not a worry; India on its way to recovery: Uday Kotak

With reforms like regular diesel price hike, fiscal deficit was not much of a worry, says Uday Kotak, Vice Chairman and MD, Kotak Mahindra Bank.

My view is Brent which is relevant for India will be an average of sub USD 105/bbl for 2014 calendar.

Uday Kotak

Executive Vice-Chairman and Managing Director

Kotak Mahindra Bank

Uday Kotak, Vice Chairman and MD, Kotak Mahindra Bank believes that in tune with the global economy, Indian economy is also on the path to a recovery. Talking to CNBC-TV18's Menaka Doshi, Kotak said that with reforms like regular diesel price hike, fiscal deficit was not much of a worry.

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Meanwhile, according to Menaka, the few business leaders that she interacted with on Tuesday have not sounded very positive on India. They are hopeful but not positive as yet. We have an interesting situation with the Indian delegation that is visiting here, she said. It is fairly top heavy when it comes to the government delegation. So, we have five or six cabinet ministers attending this year’s WEF annual meeting which is surprising for a government that is just about to go to elections.

On the business front, she said there are several familiar faces in Davos that are missing. We don’t have Anand Mahindra, YC Deveshwar and Mukesh Ambani. Sajjan Jindal too dropped out but we do have one Davos veteran  Uday Kotak who has been at Davos for many years.

Below is the edited transcript of Uday Kotak's interview with CNBC-TV18's Menaka Doshi

Q: What do you make of the mood that you are picking up in Davos? Is it a mood that expects a global recovery this year or is it more subdued?

A: This year you don’t have any major global issue; nothing which is shattering. There is no European crisis, there is no global financial crisis, there is no Iraq and there is no Afghanistan. It almost seems like a Davos without any major global issue at this point of time. If at all one gets a sense that global economy is in a sense of repair and improvement. Europe, people still believe will be slow but looks like nobody is expecting a crisis. The US as well no crisis expected, maybe growth a little slower than what people would have liked but no major issues on the global agenda as it looks today. However, having been at Davos for many years I have found that when Davos looks very clam you have to be careful because there is always some storm coming some point of time.

Q: When you say storm is it a good storm or a bad storm, a bad storm that could take us further lower or a good storm that might turn things but help us move upwards?

A: Only time will tell, so, when we meet here in 2015 we should reflect on a calm, looks like no major issues Davos. T he interesting aspect about this years Davos is you are getting the Iranian premiere and the worlds watching how that shapes out and what it does to global oil.

Q: We were talking to the chief economist at IEA earlier today and he said that this could unlikely have any impact in the near term on crude oil prices. So, atleast for the stretch of 2014 he has ruled out any peace agreement with Iran or any easing of nuclear sanctions having a big impact on the oil market because he thinks this will take a long time. What is your view on that?

A: I am more optimistic. My view is Brent which is relevant for India will be an average of sub USD 105 for 2014 calendar. May be closer to USD 100 and that could be good news for India.

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