Quick commerce a challenge to retailers, will become political issue: Uday Kotak

Financial services industry veteran Uday Kotak has said that successful quick commerce trade poses a challenge to retailers and will become a political issue.

Speaking at an event organised by CNBC TV18, Kotak also pitched for Indian businesses becoming more competitive in a "free and fair trade".

"Quick commerce has a challenge to the local retailer and it is a challenge which will come to the political front," he said.

His comments come a day after the listing of Swiggy, a prominent name in quick commerce.

The founder and non-executive director of private sector lender Kotak Mahindra Banksaid India is a unique country in the world where quick service retail has succeeded, unlike in most other parts of the world where this model has not been as effective.

This is a positive sign, where Indian innovation is working on the ground and some of this value creation is indeed real and sustainable, he said. However, India is yet to deliver consumer brands like Apple, Meta, and Unilever, which are a key feature in any developed country or region, Kotak said, exhorting Indian businesses to focus on product and creativity.

Kotak also said that the protection for domestic players in the domestic market is "very dangerous" from a long-term competitiveness perspective.

"I'd love to see Indian business being competitive in free and fair trade. We should move in the direction of open trade rather than protecting domestic business," he said.

The billionaire banker said foreign portfolio investors have over $900 billion invested in the Indian markets, and with the changes which will happen under the Trump administration or any other global event, the country needs to be ready for 5-10% of it moving out.

Kotak also pitched for an increase in the defence budget, saying it is strength on this front that shows the true prowess of a country.