India, May 12 -- Kotak Mahindra Bank founder and director Uday Kotak has warned that India must prepare for a major global economic shock arising from escalating tensions in the US-Iran conflict, cautioning that the period of limited impact on markets may be ending.

Speaking at the CII Annual Business Summit 2026, Kotak said the global economic system is entering a volatile phase marked by rising geopolitical fragmentation and uncertainty.

He noted that although the direct economic impact of the Middle East conflict has remained muted over the past few weeks, the situation is likely to change sharply.

"We haven't seen the impact of the war in two months, but now it's coming, and it's coming big," Kotak said, urging businesses and polic...