Uday Kotak says India must remain open to Chinese investment, manufacturing partnerships

Uday Kotak, Founder and Director of Kotak Mahindra Bank, on Tuesday called for India to remain open to Chinese investment and manufacturing partnerships, arguing that the country must diversify its sources of capital beyond the West amid rising trade tensions and shifting geopolitical relationships.

Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Kotak said joint ventures between Indian and Chinese companies could help expand domestic manufacturing under the Make in India initiative. He drew parallels with China's earlier strategy of partnering with American companies to build its manufacturing capabilities.

“I think for India, if you can't beat them, join them, and we need to be open. And I think we're seeing early signs of that in India, where Indian companies are partnering with Chinese companies for Make in India, and the Chinese companies are welcome,” Kotak said.

Joint ventures could boost domestic manufacturing

Uday Kotak cited partnerships involving Chinese automaker SAIC Motor's MG brand and appliance maker Haier as examples of cooperation between Indian and Chinese businesses.

He said joint ventures could offer India a way to expand domestic manufacturing by combining Indian companies' local presence with Chinese firms' capabilities. Referring to China's earlier partnerships with American businesses, he said a similar approach could provide a path forward for India.

“If there are joint ventures between Chinese and Indian companies for manufacturing in India, the game China played with the US many years ago, that could be a path forward for India, and India has to keep its optionality open,” he said.

His remarks come as tariffs, investment restrictions and supply-chain concerns increasingly influence where companies manufacture and deploy capital. These shifts have prompted businesses and governments to reassess investment strategies and production locations.

India needs to diversify sources of capital

Kotak also questioned India's historical reliance on Western investment, arguing that changing economic relationships, particularly with the United States, made it important to explore alternative sources of capital.

“Historically, India has looked too much to the West for investment, but with the challenges, particularly from the United States, and an overall more transactional approach to investment, the time has come for India to keep all its options open,” he said.

He added that the growing use of tariffs as an economic policy tool could encourage Chinese companies to establish manufacturing operations directly in other markets rather than rely solely on exports.

“I think in a world where tariffs are a weapon, Chinese strategics may be more open to actually coming and investing in local domestic situations,” Kotak said.

His comments underline the potential role of Chinese investment in India's manufacturing ambitions as global trade relationships evolve. Keeping investment channels open, he suggested, would allow India to pursue opportunities across markets rather than depend excessively on any single source of capital.

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