PMO, NSA tracking impact of Chinese FDI in South Asia

In News

The Centre has begun its first ever in-depth assessment of Chinese investments in India’s neighbouring countries. The exercise  being conducted mainly from India’s national security perspective  has been initiated by the Prime Minister’s Office and the National Security Adviser

Need for the Assessment

The increasing influence of China in the Indian sub-continent and South Asia, India’s reservations regarding the initiatives like BRI/OBOR and its effect on strategic and security concerns of the nation. Chinese investments in countries like Pakistan could, in turn, set the stage for Pakistan to make inroads into markets in Bangladesh, Sri Lanka and Nepal and challenge the presence of Indian firms in these markets, where India is currently the major player.

Method of assessment

  • The study will be dynamic and is expected to look into various trends, tracking a surge, if any, in Chinese FDI in the region.
  • The nature and impact of Chinese FDI in Bangladesh, Bhutan, Myanmar, Nepal, Pakistan and Sri Lanka.
  • Also the study will track Chinese investments in Afghanistan and Maldives too.
  • Study will also analyse the impact of these Chinese investments including those being made as part of the Belt and Road Initiative (BRI, also known as One Belt One Road or OBOR) on India’s national security  as it is expected to cover regions including Pakistan-occupied Kashmir (PoK).

Challenges for the assessment

Major challenge in the study will be the lack of detailed, country-wise data on overall FDI (year-wise) and Chinese FDI, in particular.

Source : The Hindu

GS II : Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora


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