Indian influence in South Asia declines as China expands foothold

China's exports to the region grew over five times between 2005 and 2020

Earlier this week, the Indian government announced that it would send more fuel-laden ships to Sri Lanka to help tide over the island nation’s shortage. Besides ensuring shipments of grains and other relief products, India has extended a $4-billion credit line to the country. This escalation of effort comes at a time when India has been ceding space to China in the South Asian region.

Sri Lanka, in fact, is a good example of these changing geopolitical dynamics. India accounted for 18 per cent of Sri Lanka’s imports in 2005, and China’s share was just 9 per cent. In 2020,