Why is it in the news?
- Italy, the only G7 nation to join BRI in 2019, has withdrawn from the initiative.
- Key reasons for withdrawal include a widening trade deficit (19 billion euros to 32.4 billion euros) and a significant decrease in FDI from China ($650 million in 2019 to $33 million in 2021).
- Further, growing skepticism in European countries towards China’s intentions, especially with Beijing’s alignments with Moscow.
- Similar exits by Sierra Leone in 2018 and the Philippines in 2023 indicate a trend of reconsideration.
Belt and Road Initiative (BRI)
- Launched in 2013 as One Belt One Road, it’s a China-led infrastructure project aiming to connect Southeast Asia, Central Asia, the Gulf region, Africa, and Europe through land and sea routes.
- Two primary components: Silk Road Economic Belt and Maritime Silk Road.
- Aims at deepening regional integration, promoting trade, and stimulating economic growth.
- Concerns includes unsustainable debts by China to partner countries leading to a debt trap, making them vulnerable to China’s influence.
- Implementation problems include corruption scandals, labour violations, environmental hazards, etc.
| India’s Concerns
· BRI passing through Gilgit Baltistan region violates India’s sovereignty and territorial integrity. · Undermines India’s influence over smaller South Asian countries and Indian Ocean littoral states. |
Initiatives to Counter BRI
- Partnership for Global Infrastructure and Investment (PGII): A counter-initiative to address infrastructure needs with transparent and sustainable practices.
- India-Middle East-Europe Economic Corridor (IMEC): A regional economic corridor to enhance connectivity and trade.
- International North South Transport Corridor (INSTC): A multi-modal network connecting India, Iran, and Russia, aiming to provide an alternative route.
