Forget nationalism, CPEC could do wonders for India as well

If we can all lay down the pitchforks, please.

“If India and Pakistan are able to benefit from this corridor,

then the full benefits of this corridor will be realised and shared amongst Pakistan and India.”

Think Schengen but for Asia. Think economic cooperation similar to what the EU has enjoyed for decades. If China’s One Belt, One Road initiative works, we’re looking at a whole new world of possibilities.

While China began this step with Pakistan through the China Pakistan Economic Corridor (CPEC), there is no reason for anyone to believe that this is where it will also stop. China has pumped $53 billion in Pakistan for CPEC; this includes various energy and infrastructural projects. As the two nuclear states get closer, the question of a third nuclear neighbour’s position hangs over Pakistan’s geo-strategic manoeuvres. India has openly showed its discontent over CPEC and its building of Chabahar Port in Iran is an indication of its competing interests in the region. At the foot of this development is pure potential – one that can be shared by many different countries.

Same old fears

As the CPEC route within Pakistan is planned to pass through Pakistan Occupied Kashmir, it is agitating India for fears of a Chinese stronghold in the area that would threaten its sovereignty in the region. An article in New York Times labelled this as a means of expanding nationalist agenda and swelling ambition of both countries. These two neighbours seem to be agitating at the narrowest border, over an unpaved road. Both see it as a form of other’s expansionist policies and India views China to be winning by establishing a stronghold in Pakistan and moving ahead into Kashmir as well.

For India, CPEC is no longer a means of economic recovery for Pakistan but a geo-strategic move by two nuclear armed neighbours to oust India’s influence from the region.

It’s about the money

With the emergence of CPEC it is becoming increasingly clear that India, rather than opposing it should also benefit from it. This belief primarily stems from the idea that most of the global trade is expected to pass through this region in the coming years. Both Chabahar and Gwadar are situated at the mouth of Strait of Hormuz region from which almost 17 billion barrels of crude oil pass daily.

Both of these ports are located at geo-strategic cross roads and offer trade links with Central Asia, Europe, and to the rest of the world. The three nuclear neighbours have had unique relationships amongst each other, each of these have been aimed at increasing regional cooperation and geo-economic ties.

Rather than not being a part of it, worse for India could be to think of ways in outshining Gwadar Port through its own Chabahar Port. Various statements by Military General and Minister for Planning and Development have highlighted the momentous opportunity at gaining regional cooperation amongst the two countries provided India sees an opportunity in being benefitted from this corridor.

Chabahar is merely an alternate route for India to establish firm roots in Afghanistan via Indian Ocean, without having to cross through Pakistan. The same can be achieved for India through CPEC but India seems to have plans of its own when it comes to regional domination.

Economic prospects

CPEC is a multi-billion dollar project, presently standing at $53 billion investment. While prospects for Chabahar also seem bright, it is no match for the corridor that CPEC is envisioned to be. CPEC has a natural deep sea port with the capacity to hold 300-400 million tons of cargo when completed, compared with 10-12 million tons that Chabahar can hold.

CPEC offers an alternative route to China to use by not landing itself in the conflict-ridden South China Sea. The sea route will shorten the distance and greatly reduce the costs for China both for its imports and exports. As the distance is shortened so will be the time for the transfer of goods from one point to another, thereby fostering China’s trade. This route is being constructed by China for its use and also to have the entire global volume of trade pass through this.

The same route can also be used by other countries that are a party to the CPEC as a means of benefitting from the project rather than fighting it. This means the economic benefits possible from this project will not only be reaped by China and Pakistan but by all countries who adopt this trade route. These will include various European countries which can trade with China via this route with reduced transportation costs and time. CPEC is hence a route that aims to connect the entire world from Asia to Europe and eventually to the Americas as well.

On the other hand Chabahar which is a tri-lateral agreement signed between Iran, Afghanistan and India has only a $500 million dollar investment by India which is minimal compared to the magnitude of investment by China. In terms of development funds and planning, Gwadar is seen as a decade ahead of Chabahar already and India can’t compete with China in terms of investment or even manpower that it has committed.

Also India’s dream of trading through Afghan-Iran border will remain a dream for long as Afghanistan lacks the infrastructure and the governance appetite to stomach this project. On the other hand Gwadar only runs the risk of being completely jeopardised if the security situation isn’t curtailed and proper security infrastructure and personnel aren’t trained to combat any challenges they are faced with in this region.

Better together

The Strait of Hormuz is located in a region that connects Central Asia, South Asia and Middle East allowing for greater cooperation in all fields. To be able to extract full potential of this region it is fundamental that there are no competing forces in the region and all actors are equally engaged in working towards establishing this region as the central economic hub.

If India and Pakistan are able to benefit from this corridor, then the full benefits of this corridor will be realised and shared amongst Pakistan and India. It is, therefore, extremely important that all parties which can take a part in this, work closely together to benefit from the mega project that this is bound to become.

India should therefore, work towards achieving regional cooperation by putting aside its own agendas and if not being an active partner, it should at least benefit from this by working towards formulating economic linkages and cooperative relationships amongst its neighbours.