Silk Route-1 - 052401
Silk Route-1 - 052401
Silk Route-1 - 052401
These reforms aimed to transform China's economy from a planned economy to a market-
oriented economy, and they include:
Naval Power: China’s increasing influence in the Indian Ocean region could
undermine India’s naval power and its ability to project influence and secure
its maritime boundaries.
India’s Natural Sphere of Influence
• China is investing heavily in India's neighboring countries like Nepal, Bangladesh, Sri
Lanka, and Pakistan. This increases China's political and economic influence in the
region, which India traditionally considers its own sphere of influence.
• Projects like the Hambantota port in Sri Lanka, which China now controls due to Sri
Lanka's inability to repay Chinese loans, give China strategic footholds close to India.
This could be used for military purposes in the future, not just for economic gain.
• The increasing Chinese presence alters the balance of power in the region. It
diminishes India's influence and increases China's control over important infrastructure
and trade routes
Indo-Pacific Strategy
Additionally, during the G20 Summit in New Delhi in September 2023, India, along with the United
States and other partners, announced the India-Middle East-Europe Economic Corridor (IMEC).
This initiative aims to create a new trade route connecting India to Europe through the Middle East,
positioning it as a potential alternative to the BRI. The IMEC is seen as a strategic move to enhance
regional connectivity and economic integration, potentially diverting supply chains away from China
and bolstering India's strategic influence(ABP Live).