China has mastered debt-trap diplomacy as a devious tool to ensnare several vulnerable countries, pushing them into a tight spot and establishing a stranglehold over them. This is a major area of concern for India, as its immediate neighbors -Pakistan, Sri Lanka and Nepal – have become victims of Beijing’s dangerous game plan. Weighed down by the loan burden, they have either plunged into a full-fledged economic crisis or are showing signs of distress. Sri Lanka is a classic example of how economic woes have plunged it into a deep crisis. It witnessed chaos and lawlessness as the economy tanked. Apart from economic distress, one thing common among these countries is that they are all part of China’s Belt and Road Initiative. Since China has weaponized the financial tool of debt to gain influence across the world and grab considerable power, it becomes imperative for India and Western countries to come up with effective ways to counter its hegemonic policies. India, along with its partners, will have to come up with a long-term plan to counter growing Chinese influence. The hostility along the Indo-China boundary and constant attempts by the Chinese PLA to try entering Indian Territory further validate India’s need to stand up against the Chinese plan. The controversial China-Pakistan Economic Corridor, which passes through Pakistan-occupied Kashmir, threatens India’s sovereignty.