Uday Kotak, founder and director of Kotak Mahindra Bank, has called for India to maintain an open approach to Chinese investment and manufacturing collaborations. Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Kotak emphasized the strategic importance of diversifying India's capital sources beyond traditional Western partners, especially amid evolving global trade tensions and geopolitical landscapes.
Boosting 'Make in India' Through Joint Ventures
Kotak highlighted that joint ventures between Indian and Chinese companies could significantly expand domestic manufacturing capabilities, aligning with the government's 'Make in India' initiative. He drew a parallel to China's earlier economic strategy, which saw it partner with American companies to build its own manufacturing base.
“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 stated.
He cited existing collaborations, such as those involving Chinese automaker SAIC Motor's MG brand and appliance maker Haier, as practical examples of successful India-China business cooperation. These partnerships, he suggested, combine the local presence and market understanding of Indian firms with the manufacturing prowess and capabilities of Chinese enterprises.
Diversifying Capital Sources and Adapting to Tariffs
Kotak also questioned India's historical over-reliance on Western investment. He argued that the changing economic relationship with the United States, characterized by a more transactional approach, necessitates exploring alternative capital sources.
Furthermore, Kotak noted the increasing use of tariffs as an economic policy tool globally. This trend, he believes, could encourage Chinese companies to establish manufacturing operations directly in other markets, rather than solely depending on exports. This shift presents an opportunity for India to attract more direct investment.
Kotak's remarks underscore the potential for Chinese investment to play a crucial role in India's manufacturing ambitions. By keeping investment channels open, India can pursue a broader range of opportunities and avoid excessive dependence on any single source of capital, positioning itself strategically in a dynamic global economy.