ABSTRACT
India and China are competing for influence and are also trying to expand their market and scout for resources to build their economy. As a result, they are competing in Asia and Africa. The two countries share a relationship of congagement – which is conflict and engagement. While the two countries have a dispute over their boundaries and fought a war in 1962, they are also engaged in expanding trade, which is going to touch US$100 billion. At the same time, India is apprehensively watching the growing Chinese presence in the region and its likely implications for India’s strategy. It is slowly acknowledging the Chinese presence as a strategic reality in South Asia. China’s ability and willingness to invest without political strings and its capacity to efficiently complete projects remains a major attraction for the countries in South Asia that are looking for investments. Comparatively, India’s decision-making apparatus has been sluggish. This brings in five questions that this chapter seeks to examine. What is the nature of China’s role in the region? To what extend China’s presence impinges on India’s geo-strategic interest? What are the likely consequences of Chinese investment? What is India’s approach to the neighbourhood and finally should India be worried about China’s regional role?
