In recent years, the geopolitical landscape of the Indian Ocean has been intensifying, with China aggressively asserting its dominance through strategic partnerships and infrastructure development. This initiative, known as the “String of Pearls” strategy, aims to encircle India by exploiting economically vulnerable nations and establishing logistical and naval strongholds. In response, India has quietly initiated its counter-strategy known as the “Necklace of Diamonds”, leveraging alliances, naval bases, and trade agreements to neutralize Chinese influence and secure maritime dominance.
China's Strategic Moves to Encircle India
China has strategically capitalized on the economic fragility of countries such as Djibouti, Sri Lanka, Myanmar, and Pakistan, investing billions of dollars in building refineries, high-speed cables, railway lines, and gas pipelines. These efforts aim to create an alternate trade corridor bypassing India. Furthermore, China has been working on an ambitious railway network that stretches from London to China, and another key route connecting China to Iran via Kazakhstan, Uzbekistan, and Turkmenistan, terminating in Tehran. These corridors are part of China's larger vision to become a global economic superpower by creating independent supply chains and trade routes, while simultaneously gaining military and economic leverage over rivals like India and the United States.
The Significance of the Indian Ocean in Global Geopolitics
The Indian Ocean holds immense geopolitical significance, and this was aptly captured in the words of historian Alfred Thayer Mahan, who said:
Whoever conquers the Indian Ocean will dominate the whole of Asia
This sentiment underscores India's urgent need to secure its maritime environment.
The Indian Ocean region comprises 28 countries across three continents, covering 17.5% of the global land area and hosting over 35% of the world's population—approximately 2.6 billion people. It includes 21 members of the Indian Ocean Rim Association (IORA), such as Australia, Bangladesh, India, Indonesia, Iran, Kenya, Malaysia, Oman, Singapore, South Africa, Sri Lanka, Thailand, UAE, and Yemen. Additional nations like Brunei, Cambodia, Myanmar, Pakistan, Timor-Leste, and Vietnam also lie within this strategic zone.
The region serves as a vital bridge connecting the North Atlantic economies to the Asia-Pacific markets. More critically, it houses the world's most important maritime trade routes, linking the Middle East, Africa, and East Asia with Europe and America. 80% of the world's maritime oil trade flows through just three narrow choke points in the Indian Ocean:
- The Strait of Hormuz, between the Persian Gulf and the Gulf of Oman
- The Strait of Malacca, between the Malay Peninsula and Sumatra
- The Strait of Bab el-Mandeb, between Yemen, Djibouti, and Eritrea
Other vital points include the Mozambique Channel, Suez Canal, Sunda Strait, and Lombok Strait. These chokepoints are so crucial that gaining control over them can bring global trade to a halt. Conversely, the lack of control exposes nations like India to significant risks. China's aggressive outreach near these chokepoints underscores its intention to dominate maritime trade.
China's Expanding Footprint in the Indian Ocean
China has made significant advances near all major chokepoints. To dominate the Strait of Hormuz, China has secured a 40-year lease on Pakistan's Gwadar Port and built rail infrastructure to connect with Iran. Near the Bab el-Mandeb Strait and the Suez Canal, it has established a naval base in Djibouti. In the Strait of Malacca, Sunda Strait, and Lombok Strait, China has struck infrastructure deals with Indonesia. It has also partnered with Mozambique and gained influence over the Dar es Salaam Port in Tanzania. China is encircling India and asserting influence in regions critical to global trade.
Additionally, the Indian Ocean is rich in natural resources, with approximately 16.8% of global oil reserves and 27.9% of natural gas reserves located in this region—much of it still unexplored. China's increasing trade relations in this zone underscore its long-term ambitions. As of 2017, it accounted for 16.1% of total goods trade in the Indian Ocean Region. Infrastructure projects in Sri Lanka, Myanmar, Pakistan, and Djibouti have all been established along the path of China's oil imports and exports to Africa, the Middle East, and Europe. This systematic approach is what has come to be known as the String of Pearls.
India's Necklace of Diamonds: The Silent Response
To counter this strategic encirclement, India has quietly initiated the Necklace of Diamonds strategy, forging partnerships and establishing military and naval bases in key locations across the Indian Ocean.
India has tactically positioned itself near China's strongholds at Gwadar and Djibouti by partnering with Oman, where it has access to the Port of Duqm. This port is vital for India's crude oil imports from the Persian Gulf.
At the Mozambique Channel, India signed an agreement in 2015 with the President of Seychelles to develop Assumption Island for military use. Though currently facing political hurdles and protests, this move signifies India's intent to assert a presence in key trade corridors.
At the crucial Strait of Malacca and adjacent chokepoints, India has secured access to the Changi Naval Base in Singapore, allowing Indian Navy vessels to refuel and rearm while passing through the South China Sea. In addition, India has partnered with Indonesia for access to the Sabang Port, strategically located at the entrance of the Malacca Strait.
Further east, India has enhanced its presence in Vietnam and Japan. On September 9, 2020, India and Japan signed the Acquisition and Cross-Servicing Agreement (ACSA), enabling both countries' militaries to exchange supplies and services on a reciprocal basis. Meanwhile, in Mongolia, Prime Minister Modi became the first Indian leader to visit, leading to an agreement for developing a bilateral air corridor, backed by India's credit line.
Lastly, India's move to develop the Chabahar Port in Iran has been a masterstroke. In 2015, at a time when Iran faced economic sanctions and diplomatic isolation, India committed $500 million to develop this deep-water port and related infrastructure. Located on the Gulf of Oman, Chabahar lies just a short distance from the Chinese-controlled Gwadar Port in Pakistan, providing India with strategic leverage.
Conclusion
As China's String of Pearls tightens around the Indian Ocean, India's Necklace of Diamonds is emerging as a robust counter-strategy—quiet, calculated, and geographically comprehensive. Through naval bases, strategic partnerships, and critical port developments, India is not only safeguarding its national interests but also playing a central role in maintaining a balance of power in the Indo-Pacific. The unfolding dynamics of this maritime rivalry will define not just the security architecture of South Asia, but the broader geopolitical future of the 21st century.