India’s Trump Card Against China – What does this mean for Energy?

Geopolitical Futures - India Overseas

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Despite its enormous potential, India is by no means an inevitable counterweight to Chinese ambitions in the Indian Ocean. The country’s immense domestic needs and its preoccupation with land-based threats have prevented it from turning its attention fully to the maritime realm. And the more China races ahead with its breakneck military expansion, the harder it will be for India to catch up.

But it’s a mistake to look at Indian and Chinese maritime capabilities as an apples-to-apples comparison. India doesn’t need to match China destroyer for destroyer or missile for missile because India has some extraordinary geographic advantages in its favor – ones that also happen to make it particularly attractive as a partner with other powers in the region. And the strategically invaluable Andaman and Nicobar Islands, India’s great trump card in its intensifying competition with China, is moving into the spotlight.

India’s Point of View

For a country with more than 4,500 miles (7,200 kilometers) of coastline, India has never been particularly ambitious in the maritime sphere. This is, in part, because for much of its history it didn’t have much reason to be. Geographically, India is protected by the near-impenetrable Himalayas to its north, harsh subtropical regions to its east and deserts to the west. Its long coastline makes it vulnerable to seaborne threats, sure, but few powers have ever been capable of exploiting this vulnerability. Buffered by the vast waters of the Arabian Sea, the Bay of Bengal and the open ocean, India is blessed with abundant strategic depth when it comes to naval threats. And at any rate, any invading power would confront India’s demographic immensity, which makes direct subjugation by force nearly impossible.

That outside powers have dominated the subcontinent in centuries past is a result mainly of its internal divisions. Its primary occupiers – various Muslim dynasties from the 11th century to the 18th century and the Europeans shortly thereafter – succeeded because they managed to turn India against itself, exploiting the competition among different factions and power centers to cultivate coalitions of collaborators who would support their largely commercial objections.

As a result, India has generally focused inward since it became independent. Its viability as a modern nation-state has depended on its governments’ ability to manage internal divisions. External geopolitics, with the exceptions of the periodic blowups with Pakistan and occasional border clashes with China, took a back seat to more immediate concerns. But the demands of this endeavor are changing, as is India’s broader strategic environment, forcing New Delhi to look increasingly to the far seas.

Its most vital lifelines flow from the west. To fuel growth and development, India’s economic interests have expanded far beyond the subcontinent. The country has well over a billion mouths to feed, and sustaining the level of economic growth and modernization necessary to support this population has given India a voracious appetite for commodity imports such as energy. In 2019, around 47 percent of the total energy India consumed came from imports, including more than 80 percent of its oil supplies. As a result, the country has been quickly expanding its naval presence around critical chokepoints near the Arabian Peninsula and Horn of Africa – waters known to be teeming with pirates, rebels and explosive risks rooted in Middle Eastern rivalries.

Indian interests in eastbound sea lanes are growing too as the country seeks to boost its status as a manufacturing and export power. Already, around 40 percent of India’s trade passes through the turbulent waters of the Strait of Malacca, which has plenty of pirates of its own – and, more concerning for India, Chinese ambition. As China moves to address its own strategic concerns to the east, secondary issues to its southwest are becoming more important, making India more of a potential threat, however unwittingly, and vice versa. China needs to find ways to bypass chokepoints in the East and South China seas, so it needs to build deep-water ports, pipelines and rail lines in India’s backyard. And to prepare for a potential conflict that blocks its maritime chokepoints, it also needs to develop naval forces to keep its backup outlets open and counter enemy forces coming from the west – an effort that will require a network of bases and logistics facilities on India’s periphery to support them.

Thus, India now has good reason to fear both Chinese encirclement and Chinese domination of more distant waters on which India increasingly relies. And this means India now has very good reason to invest considerably more in developing the capabilities to secure trade routes and sustain the regional balance of power with China.

But India has had a hard time shifting resources from its army and air force to the navy. While it’s been touting grand plans for a 200-ship navy by 2027 (up from 130 today) and quietly laying the groundwork for its own “string of pearls” in the Middle East and Southeast Asia, the navy still received just 15 percent of last year’s budget, compared with 23 percent for the air force and 56 percent for the army (the bulk of which goes to pensions). The navy’s share of the pie is actually down from 18 percent in 2012. India’s struggle to shift focus to the maritime realm might be one motivator behind China’s moves in the Himalayas and with Pakistan. The more India stays bogged down in conflicts on land, in other words, the less it can shift focus to the sea.

The Metal Chain

China has little reason to fear India as a major threat to its interests in, say, the South China Sea or around Taiwan. But India doesn’t need to achieve military parity with China to become a problem. It simply needs to leverage its geographic advantages and the growing interest in cooperation from external powers like the U.S. This puts the spotlight squarely on the strategic godsend that are India’s Andaman and Nicobar Islands.

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Nothing will happen quickly. India’s budgetary problems remain, and the pandemic isn’t going to help. It’s leery of giving China any more reason to try to militarize one of its Belt and Road ports on India’s doorstep. There’s some evidence that Indonesia and, in particular, Malaysia aren’t exactly thrilled about the trajectory toward militarization of the Strait of Malacca, and India has an interest in handling Southeast Asian suspicions carefully. And India, in general, is still embracing the concept of strategic alignment with outside powers – something it historically has typically eschewed – only slowly.

Even so, on the question of whether and just how much India will emerge as a major player in the burgeoning competition over the Indo-Pacific, the Andaman and Nicobars are the center of gravity. Watch them closely.

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About Stu Turley 3230 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.