Uday Kotak backs Chinese joint ventures to boost Make in India manufacturing goals

Billionaire banker Uday Kotak has advocated expanding pragmatic economic engagement with China, arguing that India should welcome strategic manufacturing partnerships to supercharge its domestic production goals under the Make in India initiative.

Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, the founder and director of Kotak Mahindra Bank said diversifying capital channels beyond traditional Western markets will strengthen India's industrial base and sustain its robust economic expansion.

"I think for India, if you can't beat them, join them, and we need to be open," Kotak said. "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."

How strategic partnerships scale up domestic industry

Kotak highlighted that China expanded its own industrial baseline decades ago by establishing joint ventures with American corporations. India, now operating from a position of economic stability and industrial momentum, can draw on a similar framework to rapidly expand domestic manufacturing capacity.

He pointed to existing commercial arrangements involving Chinese automaker SAIC Motor's MG brand and home appliance manufacturer Haier as functional examples of industrial cooperation already taking root within India's domestic market.

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

Adapting to changing global trade flows

Kotak questioned India's historical dependence on Western capital, noting that shifting economic policies in the West have made a broader investment strategy essential for national growth.

"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.

With global powers increasingly using tariffs as instruments of trade policy, Kotak noted that foreign industrial leaders are actively seeking direct local manufacturing bases in growing markets like India.

"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.

By welcoming foreign direct investment while fostering domestic technology transfer, India can consolidate its role as a key hub in global supply chains, ensuring long-term industrial self-reliance and sustained job creation.