The Bay of Bengal, a significant part of the Indian and Pacific Oceans, is gaining increasing importance due to the growing interest of its neighboring countries. This heightened attention is further amplified by India's expanding strategic interests beyond its traditional concerns in South Asia, as well as China's growing focus on the Indo-Pacific region.
Bordered by six countries – Thailand, Indonesia, Myanmar, Sri Lanka, India, and Bangladesh – the Bay of Bengal represents a naturally prosperous economic space. India, the world's most populous country, and Bangladesh, the eighth most populous, contribute significantly to the region's demographic and economic significance. This unique geographical configuration effectively connects South Asia and Southeast Asia into a single, interconnected entity.
Geographically, the Bay of Bengal holds strategic importance by providing access to major sea routes. It serves as a gateway to the Strait of Malacca, which in turn opens onto the South China Sea.
A Growing Importance
The Bay of Bengal region's increasing significance can be attributed to the following factors:
Strategic Shifts
Over the past two decades, the geo-political landscape of the Indian Ocean has undergone a profound transformation. China has strengthened its influence in East Asia, while India has emerged as a dominant naval power in the Indian Ocean. Concurrently, in an effort to contain India, China has invested billions of dollars in South Asian countries, including Afghanistan, Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar. This strategic maneuver, coupled with China's military presence in the South China Sea, has made the Bay of Bengal a focal point for Washington's ambitions to assert dominance in the Indo-Pacific region. The following key points can be noted in this regard:
Sino-Indian Rivalry
The Bay of Bengal holds significant strategic importance due to its geographic proximity, security implications, and commercial potential. India considers the bay its backyard and aims to regain the trust of smaller coastal states by supporting countries like Sri Lanka and Bangladesh. This support extends to protecting their waters and boosting economic growth. Furthermore, to maintain its role as a regional security provider, India must establish a stronger presence in the Western Indian Ocean region. While China faces a geographic disadvantage due to its more distant location, it actively seeks to increase its presence in the area.
1- New Delhi's efforts to bridge the naval gap with China:
India is working diligently to narrow the considerable gap between its naval capabilities and those of China. New Delhi has significantly boosted its naval budget, with the largest increase in the overall defense budget for 2023 allocated to the navy. This funding aims to modernize warships, strengthen the fleet, and integrate new technologies. Additionally, the Indian Ministry of External Affairs approved a proposal by India Ports Global to manage operations at the Sittwe port in Myanmar, which was built with New Delhi's assistance.
To demonstrate its deep friendship with Sri Lanka, India provided more than $4 billion in aid when the country faced an economic crisis in 2022. Furthermore, in 2023, India's Adani Group joined a consortium working to expand the Western Container Terminal at the Colombo deep-water port, financed by a $550 million loan from the US International Development Finance Corporation.
2- Bay of Bengal countries benefiting from Sino-Indian rivalry:
The countries in the Bay of Bengal region are leveraging their growing importance and the Sino-Indian rivalry to their advantage. Bangladesh, for example, has maintained a balanced foreign policy with India, China, and the United States. However, over the past decade, large Chinese investments in billion-dollar projects have aligned with the development agendas of the isolated Bangladeshi Prime Minister Sheikh Hasina. This has alarmed US policymakers, who have noted China's enormous influence over Bangladesh. Moreover, Sheikh Hasina's proposal for China to build a deep-sea port in Sonadia raised suspicions from India, Japan, and Pakistan.
Despite Beijing's claims that its presence in the Bay of Bengal is solely for commercial reasons, its actions have a clear security component. While China invests in economic infrastructure in the Bay of Bengal countries, it simultaneously strengthens military ties with them. China has bolstered security relationships with Bangladesh, Myanmar, and Sri Lanka, becoming the primary arms supplier to all three nations. In comparison, the Bay of Bengal countries' trade with the rest of the world remains limited, despite their proximity to one of the world's busiest shipping routes. This makes them an ideal location for investments, particularly in ports and vital sectors.