China is planning to provide a lump-sum amount of $9 billion as a low-interest loan to Bangladesh for the upgrade of its railway system.

Bangladesh is planning to use the loan to create at least six rail projects that will connect its capital Dhaka to domestic industrial areas as well as the Indian border.

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The move is part of Bangladesh's $30 billion modernization plan to upgrade its railway network, much of which date back to the British colonial times.

This investment has caught the attention of many analysts. Some claim that China has shifted its focus to Bangladesh because of the brewing geopolitical differences Beijing has with New Delhi.

"China's strategic intentions to extend its trade tentacles across Asia through the promotion of the Belt and Road (Silk Road) initiative are believed to be behind Bangladesh's enthusiasm for rail, but this is worthy of debate," an editorial in the state-run news agency Global Times wrote.

The editorial further said that "cheap financing from China expressly for this purpose is irresistible for Bangladesh." Although China's increased economic interaction with Bangladesh will leave India feeling uncomfortable, the initiative is not seen as a negative move especially if this will eventually push New Delhi to "pay more attention to strengthening economic cooperation with Dhaka."  

It noted that the time has finally come for India to think of how it could actively take part in regional cooperation as Bangladesh's geographic location is ideal to achieve the goal of creating the Bangladesh-China-India-Myanmar Economic Corridor that will link three of the most active economic regions in the world, namely, India, China and Southeast Asia.

TagsBangladesh, china, India, Silk Road, Belt and Road, Railway system