♤ More the 55 % of India’s trade passes through the region.

♤ India has significant investments in the hydrocarbon sector along the Vietnam coast, in South China Sea.

♤ Thus, India has advocated a peaceful resolution of differences in the framework of international law.

♤ At the same time India has expressed its resolute position supporting the freedom of navigations and open Sea lanes of Communication. India’s reaction to the PCA verdict emphasized on freedom of navigation, over-flight and the rule of law.

♤ Chinese maritime power in South East Asia has a direct bearing on the it navies’ power projection plans in the Indian Ocean. From an Indian perspective, China’s growing military presence in the South China Sea has a destabilizing effect on the wider Asian littorals, as it exacerbates existing power asymmetries.