The quest by China to improve its presence in SAARC threatens the conventional Indian hegemony in the region. The emergence of China as an influential powerhouse by penetrating the Indian economy and strategising to strengthen its presence is an issue of concern to India. The Belt and Road Initiative (BRI) aims at enhancing connectivity and economic integration in South Asia through infrastructure projects. Apart from helping to build capacity, the BRI also spreads the strategic presence of China, which results in the concern of being a debtor. The Pakistan and the Bangladesh are in favour of China becoming a full-fledged member of the SAARC as they consider it an opportunity to renew the organisation as well as counterbalance the dominance of India. Their support of inclusion of China highlights the changing regional dynamics and the changing alliances in the South Asian geopolitics. This paper will discuss why China is trying to become increasingly engaged in SAARC, what interests and concerns India has in this matter, how the region has responded to it so far, and what it means to the future of South Asian multilateralism.