India and the Quad in Port Development in the Bay of Bengal Region

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Executive Summary

The paper examines the roles of India, the United States, Japan and Australia, both bilaterally and through the Quadrilateral partnership (Quad), in driving port infrastructure development and enhancing shipping connectivity in the Bay of Bengal (BoB) region. Ports are the entry and exit points for international trade and play an important role in the economic and social development of countries. Globally, more than 80% of merchandise trade is transported via seaports (Humphreys, 2023). Approximately 30% of global trade flows are handled by ports in the BoB region, including Colombo (Sri Lanka), Chennai (India), and Chattogram (Bangladesh).

The paper aims to contribute to policy discussions on India and the Quad’s role in BoB port development in three ways: it highlights country-specific port challenges, explores India’s motivations for regional port investments, and proposes a framework for effective cooperation between India and the Quad countries. The latter addresses a key gap in the existing literature, as Quad partners continue to shape their collective approach.

The BoB is a focal point for global supply chains and geopolitical competition. Despite its significance as a maritime trade hub, its port infrastructure remains underdeveloped relative to evolving global supply chain demands. Challenges in port infrastructure and connectivity in the BoB region include infrastructure deficits, varied governance models, outdated efficiency parameters, lack of digitisation, and growing geopolitical competition. India’s engagement in the development of port infrastructure in the BoB is driven by a combination of economic and geostrategic factors.

India has expanded its investments in both domestic and regional port infrastructure, focusing on efficiency improvements, logistics integration, and the construction of new ports and terminals. These efforts are shaped by a combination of economic imperatives and geostrategic considerations. At the same time, the Quad has recognised the importance of supporting sustainable and resilient port infrastructure development across the Indo-Pacific.

Since the first Leaders’ Summit in 2021, the Quad countries have recognised ports as strategic infrastructure and have laid emphasis on their development through the deployment of resources for green shipping infrastructure and investments for smart and secure ports. India is leveraging the Quad for pooling resources and advancing resilient port infrastructure as a counterbalance to China’s influence. Each Quad member brings distinct strengths: Japan’s financial resources, the US’s technological expertise, Australia’s expertise in risk assessment and capacity building, and India’s expertise in trade facilitation and its strategic positioning in the Indian Ocean region.

The paper highlights the pressing need for enhanced port development and connectivity and proposes a strategic framework to assess opportunities and risks for India to work within the Quad framework. It presents three approaches for India–Quad cooperation and identifies the advantages and limitations of each type of engagement:

Bilateral engagement: India maintains its status as the preferred development partner by focusing on direct partnerships within its immediate neighbourhood. This allows India to tailor infrastructure projects to its specific needs and security concerns, ensuring alignment with national interests. However, this approach limits access to the Quad’s resources, expertise and funding, potentially causing delays in project execution.
Diplomatic engagement with the Quad for complementary infrastructure: In this model, India strategically collaborates with Quad members on specific projects while maintaining autonomy. This hybrid approach allows India to access advanced technologies and specialised skills without compromising strategic decision-making. For instance, India could leverage Japan’s expertise in green shipping or Australia’s capacity building in public-private partnerships (PPPs). However, managing relationships with multiple Quad partners could complicate decision-making and potentially strain India’s relations with countries that have strong economic ties to China.
Full integration with the Quad for developmental efforts: India fully integrates with the Quad on port infrastructure initiatives, pooling resources from all members to enhance connectivity in the BoB. This approach provides India with access to a wealth of resources, including financing, technology, and institutional support, accelerating infrastructure development. However, it may require India to cede some control over project location, planning and execution. It also raises concerns about the perception of the Quad as an anti-China coalition.

India’s engagement with the Quad in the BoB is a complex but crucial aspect of its regional strategy. By carefully evaluating its options, India can navigate the geopolitical challenges of the region while promoting sustainable development and enhancing its strategic influence.

Q&A with author

What is the core message conveyed in your paper?

The paper analyses engagement by India and its Quad partners—the US, Japan, and Australia—in developing ports in the Bay of Bengal. It argues that if the Quad wants to matter in the Indo-Pacific, it must start by getting serious about the Bay of Bengal ports.

The paper highlights the pressing need for enhanced port development and connectivity, proposing that India’s engagement is driven by both economic imperatives and geostrategic considerations, including safeguarding national security, promoting economic development in neighbouring countries, and countering China’s growing influence. China’s investments already surpass those of all four Quad countries combined. Against this backdrop, the paper outlines three possible paths for Quad cooperation: India doing it alone, selective diplomatic coordination, or full-scale integration.

What presents the biggest opportunity?

The Quad, recognising ports as strategic infrastructure, has emphasised their development through resources for green shipping and investments in smart and secure ports. Each Quad member brings distinct strengths, such as Japan’s financial resources, the US’s technological expertise, Australia’s capacity building, and India’s trade facilitation and strategic positioning. India could leverage these unique strengths by either balancing bilateral partnerships with selective Quad collaboration, or adopting a phased approach wherein India might initially prioritise bilateral engagements to maintain control over its strategic initiatives. Over time, it could increase diplomatic engagement with Quad partners, particularly in areas where their expertise complements India’s own capabilities. With the Quad expected to launch the ‘Ports of the Future’ initiative in 2025, this is an opportune moment for New Delhi to assess and analyse how it would cooperate and coordinate with its Quad partners in the Bay of Bengal Region.

What is the biggest challenge?

The key challenges for India’s cooperation with its Quad partner countries in port development in the Bay of Bengal lie in balancing strategic autonomy with collective action and managing perceptions of the Quad as an anti-China coalition. Coordinating distinct priorities among Quad members can complicate decision-making and slow project execution, while full integration risks India ceding some control over planning and resources to initiatives that may not align with its core interests. At the same time, even cooperative infrastructure efforts could be viewed by Beijing and regional neighbours as part of the Quad’s security agenda. These dynamics underscore the complexity of India’s regional strategy, as it seeks to advance sustainable development and strategic influence while weighing the trade-offs between bilateral and collective action.