E-Paper
India and Quad in port development in the Bay of Bengal region
This paper is authored by Riya Sinha, former associate fellow, Centre for Social and Economic Progress, New Delhi.
The paper examines the roles of India, the US, Japan and Australia, both bilaterally and through the Quadrilateral partnership (Quad), in driving port infrastructure development and enhancing shipping connectivity in the Bay of Bengal (BoB) region. Ports are the entry and exit points for international trade and play an important role in the economic and social development of countries. Globally, more than 80% of merchandise trade is transported via seaports (Humphreys, 2023). Approximately 30% of global trade flows are handled by ports in the BoB region, including Colombo (Sri Lanka), Chennai (India), and Chattogram (Bangladesh).
The paper aims to contribute to policy discussions on India and the Quad’s role in BoB port development in three ways: it highlights country-specific port challenges, explores India’s motivations for regional port investments, and proposes a framework for effective cooperation between India and the Quad countries. The latter addresses a key gap in the existing literature, as Quad partners continue to shape their collective approach.
The BoB is a focal point for global supply chains and geopolitical competition. Despite its significance as a maritime trade hub, its port infrastructure remains underdeveloped relative to evolving global supply chain demands. Challenges in port infrastructure and connectivity in the BoB region include infrastructure deficits, varied governance models, outdated efficiency parameters, lack of digitisation, and growing geopolitical competition. India’s engagement in the development of port infrastructure in the BoB is driven by a combination of economic and geostrategic factors.
India has expanded its investments in both domestic and regional port infrastructure, focusing on efficiency improvements, logistics integration, and the construction of new ports and terminals. These efforts are shaped by a combination of economic imperatives and geostrategic considerations. At the same time, Quad has recognised the importance of supporting sustainable and resilient port infrastructure development across the Indo-Pacific.
Since the first Leaders’ Summit in 2021, the Quad countries have recognised ports as strategic infrastructure and have laid emphasis on their development through the deployment of resources for green shipping infrastructure and investments for smart and secure ports. India is leveraging Quad for pooling resources and advancing resilient port infrastructure as a counterbalance to China’s influence. Each Quad member brings distinct strengths: Japan’s financial resources, the US’s technological expertise, Australia’s expertise in risk assessment and capacity building, and India’s expertise in trade facilitation and its strategic positioning in the Indian Ocean region.
The paper highlights the pressing need for enhanced port development and connectivity and proposes a strategic framework to assess opportunities and risks for India to work within the Quad framework. It presents three approaches for India–Quad cooperation and identifies the advantages and limitations of each type of engagement:
- Bilateral engagement: India maintains its status as the preferred development partner by focusing on direct partnerships within its immediate neighbourhood. This allows India to tailor infrastructure projects to its specific needs and security concerns, ensuring alignment with national interests. However, this approach limits access to Quad’s resources, expertise and funding, potentially causing delays in project execution.
- Diplomatic engagement with Quad for complementary infrastructure: In this model, India strategically collaborates with Quad members on specific projects while maintaining autonomy. This hybrid approach allows India to access advanced technologies and specialised skills without compromising strategic decision-making. For instance, India could leverage Japan’s expertise in green shipping or Australia’s capacity building in public-private partnerships (PPPs). However, managing relationships with multiple Quad partners could complicate decision-making and potentially strain India’s relations with countries that have strong economic ties to China.
- Full integration with Quad for developmental efforts: India fully integrates with the Quad on port infrastructure initiatives, pooling resources from all members to enhance connectivity in the BoB. This approach provides India with access to a wealth of resources, including financing, technology, and institutional support, accelerating infrastructure development. However, it may require India to cede some control over project location, planning and execution. It also raises concerns about the perception of Quad as an anti-China coalition.
India’s engagement with Quad in the BoB is a complex but crucial aspect of its regional strategy. By carefully evaluating its options, India can navigate the geopolitical challenges of the region while promoting sustainable development and enhancing its strategic influence.
This paper can be accessed here.
This paper is authored by Riya Sinha, former associate fellow, Centre for Social and Economic Progress, New Delhi.
