In contrast to China, India‘s foreign exchange reserves were only $352 billion in September 2015. Despite willing to take remedial action, New Delhi does not have the hard cash to take upon Chinese naval strategic threat in Indian Ocean. The strategic asymmetry vis-à-vis China will require some cool-headed long-term strategic and economic planning. Diplomats like Shyam Saran have rightly advocated limited but pragmatic cooperation with China on the OBOR while shoring up our own connectivity projects including the Chabahar port in Iran and Andaman and Nicobar island naval command.
India must, first and foremost, increase her Comprehensive National Power to deal with continued Chinese threats. The only way forward is to rapidly speed up Indian economy, ensure permanent economic reforms, develop domestic infrastructure, reenergize the Indian manufacturing sector and solidly promote the Make in India initiative. With a projected growth rate of 7.5% in 2016, India can restore her share of the world GDP and reduce the economic and strategic asymmetry with China while safeguarding her strategic & maritime interests in the Indo-Pacific.
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