Straddling
the fastest growing economies and serving as conduit for significant global
trade, Indian Ocean region encompassing three strategic choke points-
Bab-el-Mandeb, Straits of Hormuz and Malacca Straits, the region has become
arena of geopolitical contestations. Dubbed
as next theatre of “Great Game”, major players are vying to increase their
presence in the region.
In
the jostle for global supremacy, America and rising hegemon are trying to
dominate the region. Traditionally the region has been the backyard of India
and India has been the net security provider for the IOR. With around 80% of
energy supplies, 43% of raw materials and 53% of exports transiting this
region, aspiring economic super power China is keen on securing its life-line
from the geopolitical tussles has quietly evolving an agenda1.
Instructively,
aside the traditional- Near Seas Defense, regional approach focussed on
ensuring territorial sovereignty, maritime rights encompassing defensive
operations in the First Island Chain- Yellow Sea, SCS and ECS, China launched Far
Seas Defense. China publicly outlined this strategy in Defense White Paper
2015 and later reiterated the same in 2019. Given the changing geopolitical
currents and America’s rebalancing and deployment of air and Naval forces to
Asia, Chinese strategists believed that Near Seas Deployment is inadequate. As
this has the potential to leave China vulnerable to being cut off to strategic
choke points and SLOCs.
To fully
protect the economic interests, China envisioned Far Seas Defense complementing
the Near Seas Defense; devoid of limiting boundaries, with plans for a “global
Navy”. Echoing the ideas of Alfred Thayer Mahan who believed that strong
nations require powerful navy to protect its overseas commercial interests and
the SLOCs connecting those interests. China turned the concept of active
defense the guiding principle of PLA.
Steadily
China increased its presence in North Indian Ocean and West Pacific Ocean
region. As part of “diversified military tasks” or “non-military operations”,
PLA commenced counter-piracy operations in Gulf of Aden in 2008 which is
continuing till date.
In
2015, Xi abandoned the “traditional mentality that land outweighs the sea” and
gave big push to securing “strategic SLOCs and overseas interests”. Under the
stated objective of protecting China’s economic interests, overseas citizens
and maritime trade China included the element of “go global” approach. Foreign
partnerships and cooperation are pivotal for success of the Far Seas
Protection.
In
the pursuit of overseas basing and port access agreements, to seek the
willingness of the foreign partners, China is offering various economic
incentives like infrastructure development, investments, diplomatic and
military engagements 2. By creating a string of pearls under
the Maritime Silk Road Initiative, China secured Kyuakyphyu in Myanmar,
Hambantota in Sri Lanka and Djibouti in Horn of Africa.
In
response to China’s resurgent maritime dominance approach, though little late,
India began consolidating its foot print in IOR through port of Sittwe in
Myanmar, muscular presence in Andaman & Nicobar Islands and sought access
to Duqm in Oman and Assumption Island in Seychelles. China with its deep
pockets is seeking to offset India as fulcrum state and net security provider
of the region.
Beijing
has been courting the small Island nations in IOR like the Maldives, Mauritius,
Seychelles, Sri Lanka for port access across the SLOCs. Among these countries,
China has special interest in Mauritius for its strategic geographic location
and for fostering its trade policies. Strategically China has always relied on
“Small Country First Approach”.
China
made a big head way into the Western economy by signing a FTA with New Zealand,
small country with high income economy in 2008. Indeed, New Zealand was the
first OECD (Organisation for Economic Cooperation and Development) country to
enter FTA with China. Interestingly, New Zealand supported China’s accession to
WTO and became the first country to conclude its accession negotiations with
China3. Coming to the present story, like New Zealand,
Mauritius is a small country-high income economy and by concluding FTA with
Mauritius China is planning to use it as a gateway to Africa.
To
realise the desired goal of breaking into Europe, China entered into FTA with a
non-EU, NATO country Iceland in 2013. Subsequently it signed FTA with
Switzerland and now EU and China have announced a Comprehensive FTA with EU in
the last week of December 20194.
China
and Mauritius signed FTA in October 17th 2019 at Beijing and it has
become into force on January 1st 2021. With an eye on larger China-Africa economic
cooperation, China entered into FTA with Mauritius- the first ever African
country. This has coincided with the launch of African Continental Free Trade
Area (AfCFTA). AfCFTA is signed by 54 of the 55 African countries and ratified
by 31 countries. Unlike New Zealand and Iceland, Mauritius is keen on
positioning itself as the middle man between Asia and Africa.
For
years Mauritius has been an important investment entrepot for the continent.
Capitalising on its financial record, the Sino-Mauritian FTA agreed to promote,
“the development of Renminbi clearing and settlement facility in the territory
of Mauritius” and also “to share expertise in fintech to promote innovation in
financial services”5.
It is
no ones guess as who is going to benefit from the FTA. Mauritius is $14 billion
economy with 1.3 million population and managed to export goods worth
1.1billion rupees and imported goods 31.8 billion rupees6(2019).
Previous year the trade stood at 21:1 and this year it worsened to 30:1 (in
favour of China). Intent on diversifying trade and investments, Mauritius is
believed to have entered into an FTA with China. Currently China is Mauritius largest import
market closely followed by India and South Africa. Through robust economic engagement
and investment in infrastructure projects China is planning to expand its foot
print in IOR dominated by India.
Meanwhile,
China’s increased naval presence and frequent intrusions in the Western Indian
region is posing immediate security challenge to India’s maritime interests and
territorial sovereignty. In response to China’s ambitious maritime strategy,
Prime Minister Modi envisioned SAGAR (Security and Growth for All in the
Region) and revitalised ties with Indian Ocean Region maritime neighbours. In
2015, he pronounced SAGAR vision in his address to the Mauritius Parliament and
elevated the IOR islands to the status of key priority partners.
Under
the SAGAR initiative, India besides supplied 23 tonnes of essential medicines,
half a million tablets of hydroxy chloroquine, a special consignment of
Ayurvedic medicines and 14-member Medical Assistance team. After a week of
launch of vaccination drive in the country, India has shipped 100,000 doses of
COVID vaccine to Mauritius and additional EAM during his visit handed over
100,000 doses.
India
recently, conducted a COVID-19 Management: Experience, Good Practices and Way
Forward” and invited 10 neighbourhood countries which included the IOR islands-
the Maldives, Mauritius and Seychelles.
Doubling
its efforts to make forays into IOR, in a major outreach, External Affairs
Minister Jaishankar visited the Maldives and Mauritius from Feb 20th
to 23rd. The Maldives and
Mauritius, are India’s key maritime IOR neighbours and pivotal partners in
Prime Minister’s SAGAR. During his visit EAM reviewed the entire gamut of the
bilateral ties and the ongoing infrastructure projects in both countries.
Unlike
the Maldivian President Abdulla Yameen who bypassed the quorum of legislators
and obtained the Parliament committee approval to sign the 1000 pages FTA
document with China in 10 minutes, President Solih has stalled Male’s China’s
levitation. Solih took recourse in ‘India First Policy” and New Delhi
affirmatively responded with Neighbourhood First Policy and extended much
needed financial assistance for various infrastructure initiatives with “no
strings attached”.
True
to its pronouncements, India has accorded highest priority to the Maldives. Within
96 hours of roll out of India’s vaccination drive, Indian-made COVID vaccines
landed in Male. Additionally, Jaishankar gifted 100,000 doses of COVISHIELD to
the Maldives and signed $50 million defence line of credit to facilitate
capability building in maritime domain. To help the Maldivian tourism-based
economy, India launched special Air Bubble travel for Indian tourists. India
has also signed a deal to develop, support and maintain a Maldivian National
Defence Force Coast Guard harbour at Sifvaru (Uthuru Thilafarvu) to boost
maritime surveillance capabilities of Maldivian EEZ. India also reiterated
support to Maldives candidature for the Presidency of 76th session
of UNGA 7. India welcomed Maldives joining of IORA and re-joining
of Common Wealth.
Making
up for the characteristic dilly-dallying, woken up China’s FTA, India has
entered into Comprehensive Economic Cooperation and Partnership Agreement
(CECPA) with Mauritius. This is India’s first such agreement with an African
country. The FTA will bestow preferential access for export of 40,000 tonnes of
sugar and 7.5-million-piece Mauritian apparel. Countries have agreed to
negotiate an Automatic Trigger Safeguard Mechanism for limited number of highly
sensitive products within two years of CECPA.
India
is largest development cooperation partner of Mauritius. With FTA in place,
Mauritius can double up as a launch pad for expansion of business and economic
opportunities into continental Africa for Indian investors and pave way for revival
of post-COVID economies.
India
has extended $100 million defence credit line to Mauritius to facilitate
procurement of India defence assets8. To shore up the
patrolling capabilities India has decided to provide Dornier Aircraft and
Advanced Light Helicopter Dhruv on gratis basis for two years.
True
to its credentials of being a security provider of IOR, Jaishankar on his visit
ramped up defence cooperation with the IOR maritime neighbours. Invoking the
history connect and building on the robust people to people ties, India is now
steadily building its IOR strategy. Indian origin people constitute 70% of
Mauritius population.
EAM
Jaishankar called on Prime Minister Pravind Jugnauth and President Prithviraj
sing Roopun, both Indian-origin leaders. He handed over additional 100,000
doses of COVID vaccine. Unlike China whose IOR strategy is part of its larger
global ambitions, Indian Ocean, is India’s strategic backyard. Security in
Indian Ocean is paramount for its territorial sovereignty and economic
progress.
Above
all nations are awakening to the 19th century paradigm of
preponderance of great maritime power to become a global super power. Rise of
the US in the contemporary times and the unparalleled dominance of Island
nation, Britain earlier signalled the same. Resonating with the Sir Walter Raleigh
who theorised, “whoever holds the sea holds the trade of the world; whoever
holds the trade holds the wealth; whoever holds the wealth of the World owns
the World itself”9. China which had insignificant Navy till
1980s is the second biggest Naval power now. In quest for its global ambitions,
Middle Kingdom is encroaching India’s traditional area of influence.
To
counter China’s influence, India has swiftly bolstered its soft power bonds and
cementing defence cooperation to buttress the maritime dimension. The role of
maritime power began to dawn on India and New Delhi though late is bolstering
its defenses. Jaishankar’s excellent IOR outreach will go a long way in
asserting India’s regional influence in IOR.