NEW DELHI – In an increasingly protectionist global economy where tariffs serve as strategic weapons, India must keep all its options open, including looking towards China for investment opportunities, according to Uday Kotak, Founder and Director of Kotak Mahindra Bank.
Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, Kotak emphasized that India can no longer exclusively depend on the United States and Western countries for investment. He suggested that strategic Chinese firms might be more inclined to invest in India given the evolving economic landscape.
Rethinking Investment Reliance
Kotak highlighted the potential for joint ventures between Indian and Chinese companies for manufacturing within India, drawing parallels to China's own economic strategy with the US years ago. “If you can't beat them, join them, and we need to be open,” Kotak stated, noting early signs of Indian companies partnering with Chinese counterparts for 'Make in India' initiatives.
Historically, India has predominantly sought investment from the West. However, Kotak urged a re-evaluation of this approach, particularly in light of challenges with the United States and a more transactional global investment environment. He stressed the necessity for India to explore alternative capital sources and maintain flexibility in its economic partnerships.
Strategic Partnerships for Growth
Kotak's comments underscore a growing sentiment among some economic leaders that India needs a pragmatic and diversified approach to foreign investment. By welcoming Chinese strategic firms and fostering joint ventures, India could leverage new capital and technological expertise, potentially mitigating risks associated with over-reliance on any single economic bloc.