Ashish Chauhan, chief executive of the Bombay Exchange, said Britain leaving the EU was both “an opportunity and a threat” to improve trading relations with Asia.
But he warned the UK not to get “carried away,” adding: “The UK would be better off working with democracies.
“It’s easy to get carried away with fast results from non-democracies.”
When asked to clarify what he meant by “non-democracies”, Mr Chauhan pointed to China, according to the Daily Telegraph.
Brexit Trade Secretary Liam Fox said he hopes to secure free trade deals with six major economies, including India, China and the US in the wake of the UK’s exit from the EU.
But Mr Chauhan told Britain out would have to “learn to be humble” before it engaged in trade talks with former colonies during a speech at the LSE conference in India.
It comes after India’s MoS for defence, Subhash Bhamre, last week said the situation along India’s border with China is “sensitive” and has the potential to escalate.
Tensions between the two nations took a turn for the worst last summer when both sent military forces to Doklam that sits under the territory of New Delhi’s ally, Bhutan.
The area sits extremely close to a part of the southern border of the Asian superstate.
Troops of India and China were locked in a 73-day stand off in Doklam, which eventually ended on August 28.
Since then New Delhi has hosted multi-nation naval exercises in the Indo-Pacific region.
Meanwhile India says it has seen satellite images which show China has constructed seven helipads in Doklam as well as deploying tanks and missiles in the area.