The US and Iran conflicts in the world have become critical, from increasing gas to oil prices across the world. Iran took a decisive step against America to stop the Strait of Hormuz. It has deeply impacted the trade dynamics of the world, the LPG crisis, where India had to import from other nations and prices instantly hiked up.
The recent news regarding the Great Nicobar project, which is adjacent to the Strait of malacca: India wants to build an infrastructure project worth 81,000 crore to have a strong presence in the Indian Ocean region, which has recently come under massive limelight. After the opposition leaders alleged a scam on this project.
The Strait of Malacca is an important strategic location for the world and particularly India. It has 25 % of the world's economic trade happening and China has most of its dependency on it. So India is strategically building one of the largest ports of military significance, dockyards, a submarine base. It will work as a choke point for India to control the entire trade.
It is a stretch of 800 km with over 35% world oil trade and 20 % gas trade. It is surrounded by Malaysia, Thailand, Singapore, Indonesia. With 60 %, maritime trade happens from the Strait of Malacca. It is one of the largest straits for trade, in the case of a conflict between India and China. It can counter the world by choking off the passage of trade.
