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China Pakistan Economic Corridor

Posted 17 Jun 2025

Updated 20 Jun 2025

4 min read

Why in the News? 

The foreign ministers of China, Pakistan and Afghanistan agreed to extend the China Pakistan Economic Corridor to Afghanistan.

What is China Pakistan Economic Corridor (CPEC)?

  • CPEC is the flagship project of the Belt and Road Initiative (BRI) launched in 2015.
  • It is the link between the Silk Road Economic Belt and the Maritime Silk Road. 
  • The projects under the CPEC mainly relate to energy and infrastructure. 
  • The 3000 kilometres of roads, railways and pipelines are intended to transport oil and gas from Pakistan's Gwadar Port to Kashgar City in northwestern China's Xinjiang Uyghur Autonomous Region (XUAR).

Belt and Road Initiative (BRI)

  • BRI proposed by China in 2013 to improve connectivity and cooperation on a transcontinental scale.
  • BRI also known as One Belt One Road (OBOR):
    • Silk Road Economic Belt (the "Belt"): The overland "Belt" links China to Central and South Asia and onward to Europe. 
    • New Maritime Silk Road (the "Road"): The maritime "Road" links China to the nations of South East Asia, the Gulf countries, East and North Africa, and on to Europe.

India Concern regarding inclusion of Afghanistan in CPEC

  • Geo-Strategic: The expansion of CPEC into Afghanistan could present a strong competing alternative backed by China and Pakistan, potentially limiting the strategic utility of India's initiatives like Chabahar Port and International North-South Transport Corridor (INSTC) to access Central Asia.
    • Strategic encirclement: China has already established a presence at strategic ports under 'String of Pearls' around India such as Hambantota (Sri Lanka), Gwadar (Pakistan), and Chittagong (Bangladesh), with CPEC now reaching Afghanistan, China gains further strategic depth on India's western front.
  • Strengthening of Pakistan-Afghanistan-China Axis: It can strengthen Pakistan's influence over Afghanistan, especially given India's limited engagement with the Taliban regime.
    • It may potentiallyreduce India's leverage and developmental influence in Afghanistan, built over two decades via soft power, infrastructure (Zaranj-Delaram highway, etc.), and humanitarian aid.
  • Security: The Taliban regime, backed by Chinese funds and Pakistani intelligence, could once again become a launchpad for anti-India terrorism by supporting groups like Jaish-e-Mohammed and Lashkar-e-Taiba.
  • Economic: Afghanistan's rich lithium and rare earth reserves are vital for high-tech and clean energy industries. CPEC gives China easier access, putting India at a strategic disadvantage in securing these key resources.

Steps taken by India to counter CPEC

  • Chabahar port development: Development of Shahid Beheshti Port Terminal, Chabahar (Iran) offers India a strategic route to Afghanistan and Central Asia, bypassing Pakistan's Gwadar port and CPEC corridor.
  • International North-South Transport Corridor (INSTC): Established in 2000 by India, Russia and Iran, it is a multi-modal transportation route linking Indian Ocean and Persian Gulf to Caspian Sea via Iran and onward to northern Europe via St. Petersburg in Russia. 
  • India-Middle East-Europe Economic Corridor (IMEC): Launched in 2023 it aims to integrate India, Europe, Middle-East through UAE, Saudi Arabia, Jordan, Israel and the European Union.
  • Quadrilateral Security Dialogue (QUAD): It is a forum consisting of Australia, India, Japan, and United States, aims to promote a free and open Indo-Pacific region to counter China's growing influence.

Conclusion

India can continue to promote its Chabahar connectivity vision and seek diplomatic openings to engage with the Afghan people. Moreover, by advocating for transparent, inclusive, and sustainable regional infrastructure, India can position itself as a constructive player in shaping the future of South and Central Asian integration—ensuring that development benefits all without compromising core national interests.

  • Tags :
  • Quadrilateral Security Dialogue
  • International North-South Transport Corridor
  • Belt and Road Initiative
  • India-Middle East-Europe Economic Corridor
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