Aam Aadmi Party not really a factor for the global audience: Uday Kotak

Kotak Mahindra executive vice-chairman and prominent India Inc leader, Uday Kotak in an exclusive conversation with NDTV's Vikram Chandra on the sidelines of the World Economic Forum in Davos said the Aam Aadmi Party is not really a factor for the global audience and there is less negative perspective about India at the summit this year. (Watch)

Here are edited excerpts from the interview:

Vikram: For last two years sense in Davos was totally negative, now there seems to be a lot of anticipation for the election at least that is what I am picking up.

Uday: If I just sit back and look at Davos, this year first on a global scene we are coming without any major global issues, like last year the issue was potential European crisis; one year we had a global financial crisis and then we had middle east.

So we don't have any major global issue at this stage. My sense is that whenever you have any major issue in Davos it is normally for warner to something which will happen in the year ahead. So one of the thing which is on my mind is we are going to see something in next 12 months, when you have no such major global issues. Moving on to the Indian perspective, I think the mood in Davos is less negative but probably still indifferent. I don't think we have crossed that hub.

Vikram: Is indifferent worst then negativity? Because indifference could mean apathy and apathy is sometimes the worst thing to happen. There was apathy towards India for 15 years before...

Uday: I think to a certain extent it is linked to the politics. If we take the politics out of the way I think it is then possible to move from a neutral position to a positive position. Currently, may be indifference is a strong word may be neutral is a more appropriate word, so the perception is not negative but also not positive yet.

Vikram: How many people who have come to here is Davos are seeing the event that are taking place back home -- Aam Aadmi Party, Narendra Modi? And what does all of this mean?

Uday: I don't think for the global audience Aam Aadmi Party is really a factor. It's much more in Indian DNA because it's a pretty dramatic change. I think the world is more concerned about how we are governing, how we are going to run our country; and how do we move from a country where execution is a huge challenge to making execution the core of who we are.

Vikram : You know one of the things that industrialists will often always say certainly off camera is that it's becoming increasingly difficult to do business in India ; tax department is after you, the usual red tape is after you. Is that really what behind the scene people are saying that it is much tougher in India even worst in 4-5 years?

Uday: You will hear a lot of this from really big businesses. Big businesses were able manage in a way system pretty efficiently for a long time, but now they are suddenly finding it difficult to manage. Also the system has become to a certain extent negative because of all the scams which have been unfolding over time. So, lot of the noise is coming from big business I don't think the situation is as bad in the small and medium parts of India, and there the situation is quite alright.

Vikram : But for now the corruption is still there. The rates for the corruption have gone up because people say the risk is higher so we are going to charge you more. So the corruption is still there the red tape is still there, the poor infrastructure is still there and you have an increasingly activist tax department.

Uday: There are pockets where we have issues undoubtedly. The trouble with the Indian system is that very often in the large symbolic situations we don't get it right and that creates the negative perception, which is getting much broader based. However, if you look a lot of noise is coming from the challenging India. Leverage corporates stuck in infrastructure projects get the system move; those are the people making noise. But on the ground if you look at small and medium India business is chugging along which is why you are getting the 5 per cent growth.

Vikram : And is that happening more in some states than the other?

Uday : Undoubtedly, there are some spaces where it is definitely easier to do business and some states where it is very difficult to do business. For example right now doing business in Andhra Pradesh is tough, because you don't know who is really in charge of states with the Telangana issue. So there are specific states where it is getting more challenging but there are parts of the country which are working fine.

Vikram: Alright so your sense looking ahead... the next few months, weeks, years?

Uday : My view is yes there is a very important event, which is May. I have belief that for most of us who built our careers in India this too shall pass and I think you will get an outcome which hopefully will bring stability for the next few years if Indian voters really figure out they want to do. And I am not necessarily saying a particular combination a, b or c but whatever combination is it if we would get some stability.

Vikram: So what's the worst case for you... from the electoral point of view .

Uday : The worst thing would be if you get a government which is unable to ensure being in power even for 6 months or 12 months and the uncertainty which would emerge around it--fiscal situation being stressed , global rating situation. I think those are the things you want to avoid.

Vikram: So basically you don't want a khichree, that's the one thing you don't want.

Uday : You don't want a very fragmented khichree sarkaar . Khichree sarkar is a reality, nobody is getting an absolute majority but less khichree in the sarkaar .

Vikram : There is a large Indian ministerial delegation that's come this time, what do you think they should be telling the audiences out here?

Uday : I think first of all they must have conviction that whichever government comes including if their government comes in, they believe that there will be certain continuity in Indian politics and Indian governance. But I don't think that is easy for them to do it right now because we are just 2 months away from the election.