FCNR(B) Buffer Buys India Time, but $170 Billion Repayment Wall Looms: Uday Kotak
Uday Kotak has described India’s more than $130 billion FCNR(B) mobilisation as a powerful insurance buffer against global volatility, saying it has bought the country three to five years of breathing room. But he warned that the same deposits will eventually need to be repaid with interest, creating a looming $160 billion to $170 billion obligation over the next three to five years. Kotak said the window should be used to deepen reforms, lift productivity and strengthen domestic competitiveness rather than assume the cushion is permanent.
