Thursday, July 24, 2025

Sino-Indian Rivalry in the Indian Ocean Region

The post traces the ascendancy of People's Republic of China as a major maritime power and its rivalry with India in the IOR. (This post was written as a Capstone Project paper)

Introduction

The Indian Ocean Region (IOR) has emerged as an important theatre in global geopolitics in the last decade and half and continues to be so, largely due to the volume of trade and more particularly over 80% of maritime oil trade and about ten billion tonnes of cargo annually that passes through it. The Indian Ocean Region encompasses territory both land and water stretching from the Strait of Malacca in the east to the Mozambique Channel in the west and includes the Arabian Sea, Bay of Bengal, the Gulf of Aden, the Persian Gulf, the Red Sea and 33 littoral states.

The IOR’s global relevance during the Cold War era was minimal, with the primary focus being on the European continent, the Atlantic and the western Pacific. The dissolution of the Soviet Union and the subsequent rise of China and other regional economies of southeast Asia post-1995 shifted the focus to the Indian Ocean. The vital maritime routes called Sea Lines of Communication (SLOC) which connect the Middle East with South Asia, Southeast Asia, Far East and Oceania are extremely strategic in nature from a military and economic perspective and in particular from the point of energy security because the bulk of the countries in this region are extremely dependent on the Middle East for crude oil and petroleum.

China’s Growing Presence

The importance of the Indian Ocean is reflected by China’s maritime ambitions. China does not have a direct access to the Indian Ocean; its access is through the South China Sea (SCS) which connects to the Indian Ocean through the Strait of Malacca. China’s maritime ambitions stem from its burgeoning economy which has been experiencing significant growth and transformation. Over a period of few decades, China became a major manufacturing hub, producing a vast array of goods from consumer products to industrial to hi-tech ones. Chinese naval expansion was prompted by the rapid economic progress. To keep pace with its economic progress and secure its SLOCs, China embarked on rapid expansion of its navy. Its desire to achieve great power status is also another contributing factor. China is heavily dependent on crude oil and petroleum from the Gulf which passes through the Arabian Sea and the Indian Ocean. The Indian Ocean is also vital for China’s engagement with Africa, Europe, the Middle East, South Asia and the region’s island states. In addition, an Indian Ocean presence is crucial for Beijing to establish itself as a credible naval power with grand ambitions.  

Around 2013, the Chinese President Xi announced what came to be referred to as the Belt and Road Initiative (BRI) and it comprised the Silk Road Economic Belt and the Maritime Silk Road. The two were collectively referred to as the One Belt One Road initiative, but later came to be referred to as the Belt and Road Initiative (BRI). 

The original Silk Road[1] arose during the westward expansion of China’s Han Dynasty (206 BCE–220 CE), which forged trade networks throughout what are today the Central Asian countries of Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, as well as modern-day India and Pakistan to the south. Those routes extended more than four thousand miles to Europe.

The BRI on the face of it, ostensibly was a China-led infrastructure development and investment project aimed at enhancing connectivity and cooperation between China and the rest of the world, primarily through land and maritime trade routes. It involved Chinese investments in transportation, energy, and telecommunications infrastructure, among other areas, with the goal of boosting trade, stimulating economic growth, and fostering regional integration. This was only a part of this seemingly attractive project. This project entailed investments in infrastructure projects like ports and unsustainable debt was imposed on the host state

Nine-dash line

The nine-dash line is a historical claim, first appeared on Chinese maps in the 1940s encompassing a vast area of the South China Sea including the islands and reefs. China claimed that the SCS constituted historical waters encompassing nearly 90% of the Sea on the maps by using a U-shaped boundary line of 9 to 11 dashes (commonly referred to as Nine dash line).  This claim was fallacious and had no basis in international law.  According to Robert Beckman, director of the Centre for International Law at the National University of Singapore, “The dotted-line map was first produced by the Chinese government in 1947 and has nine dashes drawn in a u-shape around the islands in the South China Sea. Although China has used this map on several occasions, it has never clarified its position on exactly what it is claiming inside the dotted-line. This has led some to conclude that China is claiming all the waters within the dotted-line as its territorial waters or historic waters. Such a position would be contrary to UNCLOS.

While much attention has been given to the dotted-line map attached to China’s Note Verbale, it should be remembered that the Note does not assert sovereignty over the waters in the dotted-line except for the waters “adjacent” to the islands which arguably only refers to a 12 nm territorial sea. The Note contains no language suggesting that China claims that all the waters inside the dotted-line are its territorial waters or historic waters, or that it has any historic rights in the waters inside the dotted-line. This suggests that China’s claim is only to the islands inside the dotted-line, and to the maritime zones that can be generated from such islands, a position consistent with UNCLOS.”  

The SCS contains vital shipping lanes and being rich in hydrocarbons and fish, China constructed artificial islands in the South China Sea, militarized them with airstrips, radar systems, and other facilities in order to assert its rights over the SCS. China has laid claim to the key land features in the SCS like Scarborough Shoal, Paracel Islands and Spratly Islands and subsequent seizure of the reefs and islands have become a bone of contention between China and the littoral states including Vietnam, the Philippines, Malaysia, Brunei and other states.

The Malacca Dilemma

Apart from the fact that China is geographically distant from the Indian Ocean and bulk of its crude oil import is by sea, the heavy reliance on the Strait of Malacca as a waterway adds to its problems. This is compounded by the fact that China has very little influence over it. Its reliance on the Strait makes it vulnerable to disruptions such as naval blockade, piracy or terror attacks or asymmetric warfare or harassment attacks by one of the littoral states inimical to China which could have a damaging impact on the Chinese economy. The Malacca dilemma as the vulnerability is referred to, is further complicated by geopolitical tensions in the region, particularly the presence of major powers like the United States or India, which could potentially exploit China's vulnerability and hamper the movement of its vessels. China has been seeking to use Gwadar and China Pakistan Economic Corridor (CPEC) or Sittwe as overland routes in order to overcome the vulnerability posed by the Malacca Strait.

Chinese Bases and Debt-trap Diplomacy

India has been apprehensive over the increasing Chinese footprint in the Indian Ocean over the past few years, which it considers to be its backyard. China has used its diplomatic clout and subtle coercive economic tools, corruption and predatory loans to achieve its objectives in the Indian Ocean Region. China has been using economic machination to obtain bases/facilities for its fast-expanding naval fleet. The BRI has served this purpose. The Sri Lankan port of Hambantota is a classic example, according to some experts of debt-trap diplomacy. Here, China advanced loans to Sri Lanka for construction of the port and when Colombo struggled to repay the loans, it was forced, in 2017 to lease Hambantota to the Chinese entity China Merchant Port Holdings for 99 years. Thus, strategic influence is gained by granting predatory loans with highly unfavourable terms, completely opaque and a key infrastructure gets taken over. However, according to a leading think tank, Chatham House, the Hambantota case is more complex than a simple debt-trap policy and the lease was not a quid pro quo for the loan. Apparently, China paid Sri Lanka for the lease and the original loans remain in place. Notwithstanding the Chatham House view, the debt-trap diplomacy has been the of used modus operandi by China. According to the Associated Press, in May 2023, many countries including Pakistan, Kenya, Zambia, Laos and Mongolia were on the brink of economic collapse under the weight of crushing foreign debt, much of it from the world’s biggest lender, China. India has tried to warn countries that BRI is not an economically enriching venture but part of a geopolitical strategy by Beijing to dominate the region and Asia and keep India encircled with bases obtained through the devious debt-trap and take control of regional choke points. India, on its part has tried to ease the financial burdens of some of the states like Sri Lanka. India converted loans worth over USD 100 million into grants and reduced interest rates on existing credit in the six months leading up to April 2025, providing immediate relief to the Sri Lankan people.

SAGAR and MAHASAGAR – India’s Maritime Doctrine and Diplomatic Outreach

India has always emphasized on a free, open, and inclusive region that thrives on trade and investment. In the naval doctrine of 2004, India stressed on the freedom of navigation and securing vital maritime trade and communication pathways. India has been a net security provider in the region which means reinforcing collective security by tackling common threats like piracy emanating primarily from Somalia, rendering humanitarian assistance at sea and co-ordinating disaster relief efforts as was seen during the tsunami. The emergence of Indo-Pacific as a geostrategic concept which considered the Indian Ocean and the Western Pacific as a single strategic theatre had a telling impact on the entire security architecture. The Indian Prime Minister, in 2015, inaugurated the “Security and Growth for All in the Region” called the SAGAR doctrine which conceptualises the idea of Indo-Pacific and advocates for the Indo-Pacific region to be free, open, inclusive, peaceful and prosperous. This doctrine aimed to position India as a net security provider in the region. In 2025, the Indian Prime Minister articulated a revised framework for the country in the Indian Ocean Region called MAHASAGAR “Mutual and Holistic Advancement for Security and Growth for All in the Region.” The basis for MAHASAGAR is the incontrovertible fact that India is a first responder in the region, be it for rendering humanitarian assistance or disaster relief and developmental aid. India has also been endeavouring to strengthen maritime security cooperation in the region through the Indian Ocean Naval Symposium (IONS) which is a voluntary and inclusive initiative that brings together navies of the IOR littorals to enhance maritime cooperation and security and serves as a platform for discussing maritime issues and formulate responses to various challenges like natural disasters. The Information Fusion Centre – Indian Ocean Region (IFC-IOR), an initiative under the IONS which is jointly managed by the Indian Navy and the Indian Coast Guard is a regional maritime security centre established in Gurugram, India, in December 2018 and serves as a hub for maritime security information sharing with a view to strengthening maritime safety and security in the IOR. The Colombo Security Conclave formed in 2020 is a framework for maritime cooperation between India, Sri Lanka and Maldives. Mauritius and Bangladesh joined the grouping subsequently. Its core objective is to address regional security challenges related to maritime security, counter-terrorism and transnational crime. India has thus been actively pursuing a policy of keeping China out of the region’s affairs since China is not geographically located in the region. These initiatives and the objectives that they seek to achieve may be noteworthy, but their importance in the larger geopolitical scenario has been limited because of domestic political compulsions obtaining in the member countries.

Quadrilateral Security Dialogue (QUAD)

The Quadrilateral Security Dialogue (QUAD) is an informal strategic forum established in 2007 comprising four states, namely the US, India, Australia and Japan whose primary objective is to work for a free, open and inclusive Indo-Pacific region. The core objective of this forum is to secure a rules-based international order, freedom of navigation and a liberal trading system. Though viewed as an anti-China alliance, the QUAD does not target China directly, but its objective of having a free and open Indo-Pacific runs counter to Chinese belligerence in the SCS, its disputes with the littoral states of the region and beyond. Thus, in a way QUAD does act as a counterweight to China’s growing assertiveness and influence in the region. Chinese leaders, less than a decade ago were dismissive of the QUAD as the members had divergent interests and lacked coherence. According to the Chinese Foreign Minister Wang Yi, the grouping was merely “a headline-grabbing idea” without much substance and like the ocean foam would dissipate. China between the 2020s and 2035 saw an opportunity to be the dominant economic, technological and military power and that its dominance in Asia and the world was inevitable. China, being a revisionist power had dreamt of re-writing the rules of international order and establish its position as a global leader without firing a shot.

Within a few years of the November 2017 gathering of QUAD members in Manila, however, Beijing had started to rethink its initial dismissiveness. The forum got further impetus after the Indian and Chinese forces clashed in the Galwan Valley in June 2020. India, which till then had reservations on the “security” aspect of the QUAD, realised that China’s belligerence had to be countered strongly and, if necessary, by the use of force.  By March of 2021, when the QUAD held its first leader-level summit and issued its first leader-level communique, Chinese officials had begun to view the QUAD with growing concern. Since then, Beijing has concluded that the QUAD represented one of the most significant challenges to Chinese ambitions in the years ahead. From the Chinese perspective the geopolitical wei qi board was beginning to look grim.

Naval Capabilites

Much of India’s energy imports pass through the IOR and the Arabian Sea. The Indian SLOCs through the Indian Ocean and Arabian Sea is important as it is challenging; they are critical for its economy and security. Indian SLOCs face challenges in the form of piracy, terrorism and threats from PLA-N and Pakistani Navy in the event of a conflict. Being in close geographical proximity, these waters can be monitored on a continuous basis effectively without the Indian Navy having to stretch its resources thin. The Indian Navy’s capabilities at its current level can pose serious challenges to the PLA-N. Having said that, India needs to be cognizant of the fact that the PLA-N with 370 ships is the world’s largest navy, if not the most powerful. And this number is likely to increase to 435 by the year 2030 as per projections. The sheer numbers that the PLA-N can deploy in the event of a conflict is quite overwhelming. Though it must be emphasized that numbers alone cannot determine the outcome of a conflict because the PLA-N lacks combat experience at sea, unlike India and its western partners. Operating a fleet or carrier group in peacetime or for anti-piracy operations is one thing, while engaging in a full-fledged sea battle is quite another. The Chinese have another distinct disadvantage – lack of operational bases, (save and except Djibouti), either in the vast expanse of the Indian Ocean or in the Arabian Sea. This will most likely hamper PLA-N operations for an extended period of time. The geographical challenge to the Chinese navy acts as a significant and arguably the most important structural limitation on PLA-N’s ability to wage high-intensity naval warfare in the Indian Ocean. The tyranny of geography would require the Chinese navy to either reload in a friendly port (extremely remote possibility in the event of war) or to replenish at sea.  This scenario may change in the foreseeable future if China can manage to obtain bases in Gwadar, Sittwe (Myanmar) or Chittagong or in Maldives. It must be said that these are possible bases for the future because no arrangement is in the offing as of today. While China has been building aircraft carriers, operating carrier-based aircraft requires extensive training and the competence of the pilots is questionable.

India has its fair share of worries as well. It is lagging behind the PLA-N both quantitatively and qualitatively because for nearly a decade from 2004-05 to 2014 India had not acquired any significant naval weapons platform. There has been a big gap in numbers between India and China. India’s challenges lie in its somewhat depleted underwater capabilities. India operates seventeen diesel powered attack submarines; importantly none of them are equipped with Air Independent Propulsion (AIP) and one nuclear-powered ballistic missile submarine. The AIP technology allows submarines to stay submerged for longer durations. India is in the process of actively integrating Air Independent Propulsion (AIP) systems into its submarine fleet, primarily for the Kalvari-class (Scorpene-class) submarines. This involves retrofitting existing submarines with indigenous AIP modules developed by the Defence Research and Development Organisation (DRDO). It is unclear how successful will this integration of indigenous modules be in an imported platform. India's long-term plans include the construction of six additional submarines with AIP systems under Project 75(I), though these are not expected to join the fleet until after 2033.    

To offset the advantage gained by the PLA-N, India must look to develop indigenous weapons systems, particularly underwater drones for surveillance and offensive operations. The Indian Navy is in the process of actively developing and acquiring underwater drones, also known as unmanned underwater vehicles (UUVs), to enhance its capabilities in maritime surveillance, reconnaissance, and potentially, even offensive operations. These advancements include both smaller, autonomous underwater vehicles (AUVs) and larger, extra-large UUVs (XLUUVs) with potential strike capabilities. The development is largely driven by the need to monitor and protect India's vast maritime interests, including the Indian Ocean Region (IOR), the South China Sea, and the Indo-Pacific. 

Conclusion

From an Indian perspective, the power disparity is a matter of concern for Indian policy makers and strategic thinkers. This is offset to some extent by the geographical advantage enjoyed by India. India also has the benefits arising from strategic partnerships with the US, Japan and France and that gives it greater flexibility and manoeuvrability in the Indian Ocean.  Beijing has far too many problems to tackle; it has the US and Japan to counter in the Pacific; reunification of Taiwan and the problems associated with it and the littorals in the SCS are hostile. Thus, China, notwithstanding a huge navy will still be better off addressing issues closer home than expand its area of operations to the Indian Ocean where it clearly faces logistical problems. This is the critical time for India to beef up its naval capabilities both quantitatively and in quality and narrow the gap with the PLA-N.


[1] China’s Massive Belt and Road Initiative – Council For Foreign Relations, February 02, 2023

 China’s Massive Belt and Road Initiative | Council on Foreign Relations

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