Kotak Mahindra bank founder and director Uday Kotak today said a big oil shock is coming and India must be prepared for tough times.

"We will begin to see it. We have not seen the impact of the Middle East war in terms of energy price transmission in the last two months. It is coming and it is coming big. And the consumer has not felt the pressure," Kotak said at the CII Annual Business Summit 2026. He added that India needs to be prepared for tough times. 

"For a consumer with limited income having to spend direct on fuel, and indirectly for other items dependent on fuel, the shock is coming. We have old inventory and ability of oil companies to take the shock and be the shock absorber is limited. It is a large amount of money. We are not very far away from the shock, unless—I don't not have an answer or I think anybody else has an answer—the Iran war stops tomorrow," he added. 

"My view is we should prepare for paranoia before the event. We must hope that tough times do not come or remain, but we must prepare for the worst. It is about preparation. Be ready for tough times, rather than waiting for the shock to hit us," Kotak said. He said the Indian government and the businesses need to build strategic positioning for the country amid a global order that is increasingly getting “tribal” in its approach.  Kotak said the mindset of protectionism needs to change amid the changing world order, with “raw power” and “control over assets” at its core.