China`s first overseas naval base will be set up in Djibouti, from which place the country will be able to have a stronger presence in Africa and the Indian Ocean. Chinsese officials are calling it a logistics facility`, but are sending their military troops to the location.

This might trouble for India both in terms of defence and trade in Africa. As the naval base is located on the eastern edge of the continent, it could mean more Chinese ships in the region.

Given that China has been upgrading its defence equipment and increasing its investment in Africa, New Delhi seems to have realized that India has a lot to gain from the resource-abundant land.

Prime Minister Narendra Modi has been working on improving ties in the region and pitching his “Asia-Africa growth corridor” idea.