Former army officer Gaurav Arya on Wednesday warned that China is emerging as the biggest strategic beneficiary of the escalating West Asia conflict, while urging India to raise defence spending to 3.5 per cent of GDP and rapidly expand domestic manufacturing capacity.
Speaking at Kotak Private Banking’s “Take and Counter Take” (TACT) forum, Arya said Beijing was quietly benefiting as global attention remained fixed on Israel, Iran and the United States. He argued that China has spent decades strengthening its manufacturing base, logistics network and military capabilities, enabling it to exploit geopolitical instability and gain leverage over global supply chains and energy routes.
The discussion, moderated by Nilesh Shah and featuring economist Neelkanth Mishra, focused on the economic and security implications of prolonged global conflicts. Arya warned that the fallout could trigger more terror attacks worldwide, including lone wolf attacks and sleeper-cell activity in India.
He said India could no longer rely on “goodwill alone” and stressed that industrial strength, defence manufacturing and economic resilience were critical to national security.
In Kolkata, rising geopolitical tensions could impact sectors linked to fuel imports, shipping and global trade flows. However, defence manufacturing, infrastructure and industrial companies in the Kolkata market could see fresh opportunities if India accelerates investments in domestic production and strategic industries amid growing security concerns.
