'If you can't beat them, join them': Uday Kotak backs China investment, manufacturing JVs in India
Uday Kotak, founder and director of Kotak Mahindra Bank, has called on India to remain open to Chinese investment and manufacturing partnerships, arguing that the country needs to diversify its sources of capital amid shifting global trade relationships.
Speaking at the Bloomberg New Economy Forum 2026 in New Delhi on Tuesday, Kotak said Indian companies partnering with Chinese firms could help expand domestic manufacturing, drawing a parallel with China's earlier strategy of collaborating with American companies.
"For India, if you can't beat them, join them," Kotak said, adding that Chinese companies should be welcome to participate in India's Make in India initiative.
Quick answers to key questions
•5 QUESTIONS
1
Why does Uday Kotak support Chinese investment in India?⌵Kotak says India should diversify its sources of capital and keep its investment options open. He believes partnerships with Chinese companies could help expand domestic manufacturing.
2
What kind of India-China manufacturing partnerships did Uday Kotak suggest?⌵Kotak said Indian and Chinese companies could form joint ventures to manufacture products in India. He compared this approach with China’s past collaborations with US companies.
3
How could tariffs encourage Chinese companies to manufacture in India?⌵Kotak said tariffs can make cross-border trade more difficult. In response, Chinese companies may be more willing to set up manufacturing operations in markets such as India instead of relying only on exports.
4
Should India welcome Chinese companies into its Make in India initiative?⌵Kotak argued that Chinese companies should be welcome to participate in Make in India. He said India should retain flexibility in choosing investment partners rather than restricting options to particular regions.
5
Which India-China business partnerships did Uday Kotak cite as examples?⌵Kotak pointed to cooperation involving Chinese automaker SAIC Motor’s MG brand and appliance maker Haier as examples of partnerships between Indian and Chinese businesses.
Talking about joint ventures, Kotak argued that India could explore JVs between Indian and Chinese companies to manufacture products domestically. He added that it was the same model that China pursued through partnerships with US companies in the past.
He said India should retain flexibility in deciding its investment partners, rather than limiting its options to particular geographies.
Kotak also questioned India's historical dependence on Western investment, citing the challenges in its economic relationship with the United States and a more transactional approach to investment.
"Historically, India has looked too much to the West for investment," he said, while arguing that India needed to consider alternative sources of capital.
Kotak also highlighted how the growing use of tariffs as a trade policy instrument could influence Chinese companies' investment decisions.
As tariffs increasingly affect cross-border trade, Chinese companies could become more willing to establish manufacturing operations in other markets, including India, rather than relying solely on exports.
"I think in a world where tariffs are a weapon," Kotak said.
He cited partnerships involving Chinese automaker SAIC Motor's MG brand and appliance maker Haier as examples of cooperation between Indian and Chinese businesses.
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.