India expands military footprint near Malacca Strait with $9 billion project

India is pressing ahead with a $9 billion infrastructure project aimed at strengthening its military and strategic presence on Great Nicobar Island, located near one of the world’s most vital shipping corridors.

The initiative is designed to expand India’s defence reach far beyond the mainland and closer to some of the busiest maritime trade routes on the planet, as reported by defence News.

At the center of the strategy lies the Malacca Strait — the narrow waterway between Indonesia, Malaysia and Singapore that serves as the shortest sea route linking the Indian Ocean with the South China Sea. The strait handles more than a quarter of global maritime trade and is especially critical for China, with nearly three-quarters of its imported crude oil shipments passing through it.

Part of India’s remote Andaman and Nicobar archipelago, Great Nicobar Island lies closer to Indonesia than to mainland India and has long been viewed as a potential strategic outpost in the Indo-Pacific region. The island sits roughly 150 kilometers from the western entrance to the Malacca Strait.

According to the article, project has gained additional geopolitical relevance as recent disruptions in the Strait of Hormuz during the US-Iran-Israel conflict renewed global concerns about vulnerable maritime chokepoints and the need for alternative strategic positions.

India’s government received approval to proceed after environmental objections were dismissed in February by the National Green Tribunal, the country’s environmental court. The development will span around 160 square kilometers of tropical forest and is expected to unfold in three phases.

“It leverages Great Nicobar’s strategic location to strengthen India’s national security, maritime and defence presence in the Indo-Pacific while simultaneously embedding strong environmental safeguards and tribal welfare mechanisms,” the Indian government said in a press statement on May 1.

Strategic hub in Indo-Pacific

The project includes plans for an international container trans-shipment terminal, a dual-use civilian and military airport, a power plant and a new township at Galathea Bay on Great Nicobar Island.

Defence analysts say expanding existing airstrips will allow for increased deployment of fighter jets and surveillance aircraft, while new ports and logistics facilities are expected to enhance India’s naval capabilities in the region.

“It enhances India’s ability in the maritime space whether it is for surveillance, monitoring of shipping traffic, or potential naval operations. Great Nicobar Island has been talked of as a permanent forward base for military power projection. So essentially it strengthens India’s presence in the Indo-Pacific,” said Harsh Pant, vice president at the Observer Research Foundation in New Delhi.

Countering China’s growing presence

Analysts note that beyond trade and infrastructure ambitions, the project is also closely tied to India’s strategic rivalry with China.

Although the two Asian powers have long faced tensions along their disputed Himalayan border, India increasingly views China’s expanding footprint in the Indian Ocean as a growing security challenge.

As the outlet points out, Beijing has steadily strengthened its maritime presence by investing in ports across countries such as Sri Lanka and Pakistan, while also developing road and rail links through Myanmar to gain direct access to the Indian Ocean. Chinese submarines and surveillance vessels are also frequently active in the region.

Against that backdrop, Great Nicobar is increasingly being viewed in New Delhi as a key strategic asset that could help India monitor shipping activity and project military power deeper into the Indo-Pacific.

By Nazrin Sadigova