ASSESSMENTS

Wary of China, India Shares Its Largesse With Neighbors

Apr 24, 2018 | 09:00 GMT

A Buddhist temple sits near a hydroelectric grid main in southeastern Bhutan in 2013. Home to meditating monks and Himalayan nomads, the sleepy kingdom of Bhutan has set its sights on becoming an unlikely energy powerhouse thanks to its abundant winding rivers. Hydropower plants have already harnessed the country's water flows to light up nearly every Bhutanese home, generating electricity that is sent to remote villages by cables strung through rugged mountain terrain.

(ROBERTO SCHMIDT/AFP/Getty Images)

Highlights

Because of China's increasing influence with the Belt and Road Initiative, South Asia and the Indian Ocean region will account for the bulk of India's foreign aid funding.
Bhutan's strategic location and hydropower potential will make the small Himalayan kingdom the continuing recipient of the most Indian foreign aid.
As China expands its military presence around the Indian Ocean, New Delhi will prioritize funding for defense infrastructure in island countries such as Mauritius and the Seychelles.

Big changes in the neighborhood are giving the government in New Delhi more than a few sleepless nights. Buoyed by an $11 trillion economy and plans to connect Eurasia with its ambitious Belt and Road Initiative, China is showing up in areas that India has traditionally viewed as its backyard. Around South Asia and the Indian Ocean, New Delhi has long understood the imperative of preventing another neighbor from allying with a rival military power (as Pakistan has done with China), as well as the need to earn the support of regional governments to help resolve bilateral irritants and expand trade to bolster the country's $2 trillion economy....

Subscribe to view this article

Subscribe Now

Already have an account?