One Belt one road initiative

China's one belt one road initiative is basically China's attempt to counter US economic designs which are hampering Chinese economic prospects. This initiative in its essence is all about reviving a historical route of connectivity which would create new production networks all across its periphery and allow developed countries to access the Chinese market and enviable Forex reserves for their own infrastructural development. This would help China to bring next generation of reforms in its manufacturing by promoting high value added products in a rising domestic wage environment and export of low value products to developing economy with untapped labour potential.

India is also supporting Chinese desire to counter US economic designs in international sphere because in recent times it has been more of an impediment to Asian economies. Asian economy can't be sustainable if the chief market is technology intensive, quality sensitive with limited price elasticity and lies beyond pacific. India has confirmed its membership in AIIB and is engaging with China in all the financial aspects of the initiative.

But despite aggressive advertisement by China, India is treading cautious steps with regard to this initiative. Firstly, Chinese aims in this initiative weather it is purely economic or strategic too is ambiguous. India can't officially allow Chinese strategic presence in Indian Ocean when the Chinese are wary of India's economic interest in South China sea. Secondly, any talks on this initiative due to its nature must be multilateral, which China is cleverly avoiding. For example the Chinese have settled boundary disputes with all its neighbours except India which would have not been the case if talks were multilateral. Unilateral engagement with a profoundly rich and powerful country(China) can not be accepted by India which had indisputably held the position of leader of developing countries. Thirdly, India itself has started the 'Mausam' initiative whose future would be locked if Chinese 'One road, One belt' is accepted.

With regard to the history of Sino India relations I think the Indian stand is understandable and China must engage with sensitivity to Indian concerns, if it is serious about the economic goals of the initiative.