India’s Policy Response to China’s Investment and Aid to Nepal, Sri Lanka and Maldives: Challenges and Prospects

Abstract

Regional strategic dynamics in South Asia is in a state of flux since the announcement of China’s Belt and Road Initiative (BRI). China emphasises on the economic aspect of investment in infrastructures and energy projects, but strategic underpinning are very much apparent. China loan has created indebtedness in these countries and has helped Beijing to gain strategic foothold in the region which India considers as core to its security. India’s aid programme though focuses on the neighbourhood, it remains small compared to China and suffers from delivery deficit. This article examines India’s policy response to China’s presence in the region.