About

• Launched by China in 2013 under President Xi Jinping.
• Aims to revive ancient trade routes from China to Europe and East Asia.
• Involves providing loans for infrastructure projects to various countries.
• Often entails Chinese companies winning contracts for project execution.
• Includes the export of Chinese capital, labour, technology, and the use of the Yuan.
• Involves the development of new ports, industrial hubs, special economic zones, and military facilities.

Economic Significance

• China claims trade volume with BRI countries surpassing $6 trillion.
• Over $80 billion in Chinese investment in BRI countries.
• Creation of nearly 300,000 jobs for local people.
• The World Bank estimated that BRI, if successful, could increase global trade by 1.7 to 6.2 percent and global real income by 0.7 to 2.9 percent.

Criticisms

• Criticized in the West and by some countries for providing unsustainable debts.
• A 2019 World Bank report identified 12 corridor economies facing unsustainable debt situations.
• Concerns about public assets potentially being handed over to foreign contractors or China.

India’s stand

• India opposes BRI due to the China-Pakistan Economic Corridor (CPEC), which passes through Pakistan-occupied Kashmir.
• India’s objection is based on territorial sovereignty concerns.