Strategic Choke Points and Naval Expansion: India and China’s Maritime Rivalry in the Indo-Pacific

The Malacca Strait serves as a critical global maritime choke point, through which nearly 30% of all traded goods and a significant portion of China’s energy imports pass. Recognising its vulnerability, China has invested heavily in alternative supply corridors and naval modernisation to secure its interests. Meanwhile, India, with its extensive coastline and strategic island territories, is ramping up its naval capabilities and strengthening regional partnerships to counterbalance China’s influence in the Indo-Pacific region.

The Strategic Importance of the Malacca Strait

The Malacca Strait is one of the world’s busiest maritime routes, with approximately 94,000 ships passing through it annually. This narrow waterway facilitates the transport of around 30% of global traded goods and nearly 24 million barrels of crude oil every day, fueling the industrial engines of East Asia. More critically, about 80% of China’s imported oil and gas transits through this passage, making it a vital artery for the Chinese economy.

Understanding the potential risks of this concentration, Beijing has prioritised the development of alternative supply routes to reduce its dependency on the Malacca Strait.

China’s Alternative Supply Corridors

Three major economic corridors have emerged as part of China’s strategy to diversify its maritime supply lines:

• China-Myanmar Economic Corridor: Linking China’s Yunnan province to Myanmar’s deep-sea port at Kyaukphyu through pipelines, railways, and roads, facilitating direct access to the Indian Ocean.

• China-Pakistan Economic Corridor (CPEC): A 3,000-kilometre network connecting China’s Xinjiang region to the Arabian Sea ports of Karachi and Gwadar, significantly enhancing China’s strategic reach.

• Middle Corridor: Extending from commercial hubs in Urumqi and Kashgar across Central Asia, the Caspian Sea, and into Turkey, linking China with the European Union.

Despite their scale, these corridors do not yet match the sheer capacity of the Malacca Strait, prompting China to modernise and expand its navy over the past two decades.

China’s Naval Modernisation and Expansion

As of 2023, China operates a fleet of approximately 370 battle force ships, surpassing the U.S. by around 78 vessels. However, the majority of China’s fleet consists of coastal defence ships like frigates and corvettes, while the U.S. maintains fewer but larger and more heavily armed vessels.

To gain strategic depth, China is now focusing on constructing larger surface vessels, including Type 055 destroyers, Type 092 nuclear submarines, and aircraft carriers. These blue-water naval assets enhance China’s ability to project power across vast oceanic distances.

Additionally, China has invested nearly $30 billion in foreign aid across 46 countries to establish diplomatic ties and naval logistics bases beyond its traditional maritime zones. Since opening its first overseas base in Djibouti in 2017, China is developing similar arrangements in Cambodia, Pakistan, Tanzania, and notably in the Bay of Bengal region.

China’s Growing Presence in the Bay of Bengal

Ports like Kyaukphyu in Myanmar and BNS Payra in Bangladesh, though officially operated by host nations, have seen increased use by China’s People’s Liberation Army Navy (PLAN). This “continual presence” strategy normalises China’s naval activities in the Indian Ocean, strengthens partnerships, and enhances its strategic influence.

India’s Maritime Potential and Strategic Challenges

India possesses a vast maritime domain with over 7,500 kilometres of coastline and more than a thousand island territories. Despite relying on sea routes for approximately 97% of its external trade, India has historically prioritised land and air defence capabilities. The Indian Navy receives less than 15% of the military budget annually, resulting in a fleet of roughly 130 warships, many of which are ageing and below NATO standards.

India’s Naval Modernisation and Sea Denial Strategy

India is shifting its naval strategy toward sea denial, with key assets including the INS Varsha submarine base on the Bay of Bengal. Expected to be completed by 2026, INS Varsha will house India’s growing fleet of nuclear-powered submarines, serving as a counterbalance to China’s naval bases like Hainan Island.

The launch of INS Arihant in 2016 marked a significant milestone — India’s first indigenous nuclear ballistic missile submarine, equipped with advanced missile systems capable of targeting strategic Chinese military installations. The ongoing expansion of India’s submarine fleet will strengthen its nuclear triad and enhance deterrence capabilities.

Strategic Importance of Andaman and Nicobar Islands

Located roughly 500-600 kilometres from the Malacca Strait, the Andaman and Nicobar Islands form a critical defensive barrier separating Southeast Asia from the Bay of Bengal. These islands provide India with strategic maritime advantages, including surveillance capabilities and control over vital sea lanes.

Recent upgrades, including the construction of a new runway at INS Kassa, allow India to operate advanced maritime patrol aircraft like the Boeing P-8 Poseidon, enhancing its ability to monitor Chinese naval movements.

India’s Act East Policy and Regional Engagement

Under Prime Minister Narendra Modi’s “Act East” policy, India is deepening its engagement with Southeast Asian nations through arms deals and strategic partnerships. In 2024, India supplied BrahMos supersonic cruise missiles to the Philippines and is negotiating similar agreements with Vietnam.

By projecting naval power into the South China Sea and establishing forward bases, India aims to counterbalance China’s influence and secure its maritime interests in the Indo-Pacific.

Final Thoughts

The ongoing maritime competition between India and China underscores the growing strategic importance of the Indo-Pacific region. With the Malacca Strait at its heart, both nations are investing heavily in naval modernisation, infrastructure, and regional alliances to secure their economic lifelines and geopolitical influence. As India expands its naval capabilities and strengthens regional partnerships, the balance of power in this critical maritime domain continues to evolve, shaping the future of regional security and global trade.