Sri Lanka, Pakistan, Bangladesh … will fall out of 8 of them, how will this threat to China, India?

New Delhi: China is increasing its influence in South Asia. He is doing this through strategic investment, high interest rate loan and large infrastructure projects. Due to this, many countries have become economically weak. At the same time, they have also become politically insecure. Countries like Sri Lanka, Maldives, Pakistan, Afghanistan and Nepal are showing signs of serious tension. Law and order in Bangladesh is also deteriorating. Violent protests are taking place. Hardness has increased. However, Diggaz entrepreneur Rajesh Sahni claims that 5 out of 8 economies in South Asia have collapsed: Sri Lanka, Maldives, Pakistan, Afghanistan, Nepal are not completely correct, but the situation is definitely worrying.

The situation is not good in Bangladesh. There is no rule of law. People are performing violently. The radical ideology has increased. The government has failed to handle the situation. The army has also warned that the situation may worsen. Inflation is increasing. Investment is decreasing. The growth rate has also come down to 3.3-3.9%. The economy is just running.

Sri Lanka’s condition is bad

Sri Lanka’s condition is also poor. Despite having a slight growth rate, Sri Lanka has problems like poverty, inflation and low value. In 2022, Sri Lanka expressed his inability to repay foreign debt. It still has to give more than half of its foreign debt to China. Many projects have not benefited as expected. Paying debt is still a big challenge.

The economy of Maldives depends on tourism. The GDP growth rate is expected to be 6.4%. However, China has to pay about 20% of Maldives’ public debt. If an external shock occurs, the economy of Maldives may collapse. The FTA (free trade agreement) between Maldives and China may increase trade deficit. Local industries are expected to suffer losses.

Question on Pakistan’s sovereignty

There is political instability in Pakistan. Unemployment has increased and the economy is critical. The loan from China through CPEC (China-Pakistan Economic Corridor) has improved infrastructure, but the debt has also increased. This is also raising questions on Pakistan’s sovereignty. The trust of investors is still staggering.

Afghanistan’s economy is isolated. He is dependent on help. Is struggling with poverty. China’s association is less than Afghanistan and is gradually increasing. Nepal is looking stable on paper, but its trade deficit with China is increasing. He is becoming more dependent on Beijing -backed infrastructure.

What is the danger of India?

Many countries in South Asia are getting caught in the debt trap of China. This is affecting the economy and politics of these countries. These countries have to take concrete steps to improve their economy and reduce dependence on China. China is not a good sign for India to increase the influence of China in South Asia. The only India is the direct rival of China.