‘The Shock Is Coming And It’s Big’: Uday Kotak Warns Of Economic Fallout From West Asia Crisis For India

Last Updated:May 12, 2026, 19:41 IST

Uday Kotak warned India may soon face fallout from the West Asia conflict, with rising fuel prices and inflation.

Billionaire banker Uday Kotak has cautioned that India could soon face the economic fallout of the ongoing West Asia conflict, involving the United States, Israel and Iran, in the coming weeks, particularly through rising energy costs.

Speaking at the CII Annual Business Summit 2026, the founder of Kotak Mahindra Bank said the impact of higher oil prices has not yet fully reached Indian consumers, but warned that the situation may worsen in the coming months.

India Yet To Feel Full Impact Of Crisis: Kotak

“We have not seen the impact in the last two months of the Middle East war in terms of energy price transmission. It’s coming. And it’s coming big," Kotak said.

He explained that existing fuel inventories are currently softening the immediate impact, which is why households have not yet experienced a major increase in costs. However, he noted that the pressure would eventually be reflected in fuel prices and the cost of everyday goods and services.

“The consumers have not felt the pressure at all," he said, pointing out that lower and middle-income families could face the greatest difficulties if inflation rises further.

Kotak’s Warning For Middle-Class Families

Kotak also highlighted how fuel prices indirectly affect household budgets through transportation and supply chain costs. “Think about a consumer with limited income, having to spend more directly on fuel and indirectly on other items dependent on fuel. The shock is coming," he warned.

His remarks come amid concerns over volatility in global fuel markets due to tensions in West Asia and uncertainty surrounding the fragile US-Iran ceasefire. Fears of disruptions in oil supply through the strategically important Strait of Hormuz have already pushed crude prices higher. At the same time, the Indian rupee has weakened against the US dollar and stock markets have witnessed sharp fluctuations.

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