I dream of Indian rupee as reserve currency by 2047, says Uday Kotak

Kotak Mahindra Bank managing director and chief executive officer Uday Kotak

Kotak Mahindra Bank managing director and chief executive officer Uday Kotak has said he dreams of the Indian rupee becoming a reserve currency by 2047, as the debate over the US dollar’s prized status gains momentum.

“I dream of a reserve currency called Rupee...by 2047 if not before,” Kotak said at the inaugural Rakesh Jhunjhunwala Memorial Lecture organised by the Ashoka University on August 2. The year 2047 will be the centenary year of India’s Independence.

Kotak highlighted the importance of a solid current account surplus, balance of payments and international trust as he shared his thoughts on reserve currency.

A reserve currency is a foreign currency possessed by central financial authorities in big amounts for international transactions. For decades, the US dollar has reigned as the reserve currency, widely used in cross-border trade.

The Reserve Bank of India in July 2022 put in place a rupee trade settlement mechanism to use the home currency instead of the dollar and other currencies for international transactions.

The veteran banker picked education, defence, economic growth and social well being as the areas that India should focus to become a global leader by 2047.

Expressing concern about climate change as well as growing air pollution, Kotak said a task for the country and policymakers: “Can we work to ensure no Indian city ranks among top 10 polluted cities."

Hailing India’s corporate social responsibility (CSR) law as among the finest, he said, “It's a catalyst that can change the future of India."

He also stressed on the importance of having world-class educational institutions to fuel innovation, research and academic excellence.

Praising strides made by the country in democratising technology, Kotak said there the latest advances in tech should reach all segments of society.

There was a need to enhance India's soft power on the global stage and the country’s culture and diversity can help foster a sense of nationhood he said, while also emphasis the need for military power, saying hard strength was necessary.

India needs to make itself and attractive destination for reverse migration.

Kotak said the judicial system was important to ensure free thinking and it should be made more efficient while maintaining its independence.

Billionaire investor Jhunjhunwala passed away on August 14, 2022.