A new game is playing out on the chessboard of power in Asia. This time the weapon is not a cannon or a missile but an electrical wire. India is making the best use of power transmission lines to respond to China’s growing influence in its neighboring countries. While China is driving smaller countries into a debt trap through the Belt and Road Initiative (BRI), India is giving them a solid economic model by buying electricity.

China’s Upper Trishuli project has been washed away in the floods in Nepal

China’s plan is quite clear. It builds infrastructure in neighboring countries, but does not buy electricity from there. On the other hand, India is the largest buyer of electricity across the subcontinent. Take the example of Nepal. China built several projects there, but India has made it clear that it will not buy power from Chinese-funded projects. In such a situation, China’s project is proving to be a loss deal for Nepal. The recent floods in Nepal destroyed the Upper Trishuli Power Project built with Chinese money. Due to this Nepal suffered heavy loss of electricity. Nepal will also have to bear the burden of a loan of 149.4 million dollars from China.

Bhutan’s wisdom worked

Unlike Nepal, Bhutan has understood the situation well. Bhutan has no diplomatic relations with China. It has made its hydro power policy in such a way that Indian private companies are investing heavily there. The Tata and Adani groups are working with the Bhutan government on separate projects of 5000 MW each. The result is that Bhutan has earned $250 million in 2025 by selling electricity to India. This earnings is about 120 million dollars more than Nepal. The government of Nepal is lagging behind economically while trying to maintain a political balance. Now Nepal is also under pressure to tap into India’s energy demand like Bhutan.

Electric wires became a weapon of diplomacy

Big power projects are important, but the real power lies in the transmission lines. When electricity is sent from one country to another, these lines become strategic power lines. Recently, when new governments were formed from Nepal to Bangladesh, their first need was for additional electricity. India was the only one to help them at such a time. India is Nepal’s largest buyer of electricity, earning Nepal $130.8 million annually.

Impact from Sri Lanka to Bangladesh

India’s target is not limited to Nepal or Bhutan. Sri Lanka is also on India’s radar. A 500 MW transmission line is under consideration to connect New Madurai with Sri Lanka’s Mannar. Electricity is very expensive in Sri Lanka now. After connecting with the Indian grid, a large energy network will be created from Nepal, Bhutan to Sri Lanka. This connectivity will not only strengthen economic ties but also reduce anti-India sentiments in neighboring countries. The most effective way to defeat China’s debt model is to provide these countries with reliable sources of income. India is doing exactly this.