‘Play to his ego': Asia's richest banker Uday Kotak on how to handle Trump's tantrums

Economic Times

3 days ago

India must prepare for uncertain global economic conditions and stay focused on national interest while dealing with unpredictable international figures like Donald Trump, said Uday Kotak, Founder and Director of Kotak Mahindra Bank, during an interview on Republic TV.
Speaking about the former US President's recent statements on tariffs, Pakistan, and India's economy, Kotak said leaders must understand how to respond strategically to such rhetoric.
'Power is power and Donald Trump has inherited US power,' Kotak said, referring to the former President's continued influence on global economic policy. He pointed out that Trump leverages the strength of the US dollar, military, and economic position to get what he wants — even if it strains international relationships.Kotak warned that such short-term power plays could hurt the US in the long run. 'Trust takes a long time to build but can be eroded very fast,' he said.Kotak stressed the need for India to stay calm and not get provoked by Trump's statements, including those comparing India with Pakistan or dismissing India's economy.
'We should not fall to his bait,' Kotak said. 'We should be clear that there are areas we may have to agree and there are areas we will have to take a position.'He added that part of the strategy lies in understanding Trump's personality. 'The man has huge ego... Playing to his ego is an important part of the narrative,' he said.According to Kotak, India must not shy away from using economic signals to protect its interests. He said New Delhi should not hesitate to engage with China on trade matters if it helps balance pressure from the US.'If the US is going the way it is, we have to find what makes sense for us. Finally, it is self-interest,' he said, referring to India's policy flexibility in the current global environment.
Kotak believes the best way to deal with global headwinds is by building a stronger domestic economy. He called for capital support to mid-sized businesses, faster manufacturing, and better use of India's stable macroeconomic position.'We have to go whole turbocharge. If necessary, the government has to give steroids for building,' he said.Looking ahead, Kotak urged Indians to stay alert and not be lulled into complacency. 'I would like every Indian to assume we will be in rough weather and prepare to do very well in rough weather,' he said.He added that challenging times are when real economic strength is built. 'This is the time for Indians to wake up and say next 2 or 3 years are tough for us,' Kotak said, drawing parallels to the 1990s when Indian businesses rose to compete globally.
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