This would be real provocative towards India if China does in fact try and build islands in the Indian Ocean:

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There are growing fears, particularly in India, that China may soon launch an island reclamation project in the Indian Ocean.

The fears stem from a constitutional amendment passed by the small archipelagic nation of Maldives last week, which for the first time allows foreign ownership of Maldives territory. Specifically, the constitutional amendment allows foreigners who invest over $1 billion to own land, provided that at least 70 percent of the land is reclaimed from the sea.

Since July 2013, China has launched a massive reclamation project in the South China Sea that has created 2,000 acres of artificial landmass in five Spratly island outposts. Some 75 percent of this been dredged this year alone.

Unnamed Indian officials have told local media outlets that they are “concerned” that China now plans to do the same in some of the Maldives’ 1,200 islands, which are located strategically in the Indian Ocean.

They are not alone; domestic opponents of the amendment have expressed similar concerns. For example, Eva Abdullah, one of just 14 parliamentarians to vote against the amendment, told The Diplomat “this will make the country a Chinese colony.”  [The National Interest]

You can read the rest at the link, but it seems it would easier for them just to continue to use bases in Pakistan instead of building their own island.