India's $10B Great Nicobar hub aims to counter China's Malacca dilemma

India's ambitious $10 billion project to develop Great Nicobar Island into a major defense and logistics hub is gaining momentum amid the global energy crisis from the Strait of Hormuz blockade. The island, part of the Andaman and Nicobar chain, sits less than 150 km from the western entrance of the Strait of Malacca—a critical chokepoint for China's oil and trade. The project has long been seen as a way for India to counter Chinese naval influence in the Indian Ocean, but the Hormuz disruption has elevated its strategic importance.

Supporters, including Indian military veterans, argue that a fortified Great Nicobar could enable New Delhi to 'control' or disrupt Chinese supply lines, worsening Beijing's 'Malacca dilemma'—its dependence on the strait for energy imports. The 921 sq km island, currently wrapped in dense prehistoric rainforest, would host an airport, naval base, and logistics facilities. The plan underscores the fragility of global supply chains as the Strait of Hormuz closure has already disrupted flows of oil, gas, and fertilizers to Asia, with China especially vulnerable as the world's second-largest economy.