BELT AND ROAD INITIATIVE: Developments, Economic and Strategic Implications

China’s flagship project Belt and Road Initiative (BRI) launched in 2013 is meant to reshape global networks of transport infrastructure further integrating China with Asia, Europe and Africa having significant implications on trade, investment and economic and political ties of China vis-à-vis with other countries. The paper also highlights the economic as well as strategic implications of BRI on India. Overall, there has been significant increase in Chinese outward investment during the post-BRI period and most of the outward investment has been directed towards countries which are participating in BRI. Though the objectives of the projects undertaken in different countries varies, the overall objective is to develop transportation, logistics and communications which would reduce trade and transaction cost for China’s trade, give more market access to Chinese markets and ensure stable supply of energy and other resources. There is strong possibility of trade diversion due to BRI affecting competing countries like India.

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