Strategic Engagements between India and Mongolia
The recent unfolding of events in the region has compelled India to diversify its Act East Policy since its commencement has made north-eastern Asia an important aspect in India's strategic vision for the region. In recent times, India-Mongolia relations have been seen as an extension of India's broader Neighbourhood policy. Both India and Mongolia share dynamic political and cultural relations. In a more extensive regional system, Mongolia is fundamental to India's 'Look East' and now 'Act East' Policy.
The India-Mongolia Joint committee held its 7th meeting on 3rd December 2020. It was jointly chaired by India's external Minister Dr. S. Jaishankar and Mongolia’s Chief Cabinet Secretary H.E. Mr. L. Oyun-Erdene. 2020 also marked the 65th anniversary of the establishment of diplomatic relations between both nations. India became the first country that wasn't the part of Soviet Bloc that recognized Mongolia in 1955 and established diplomatic relations with Ulaanbaatar. India supported the membership of Mongolia in the Non-Alignment movement, as well as in the United Nations, and Mongolia has always reciprocated, whether being supportive of India’s permanent candidature for UNSC, or co-sponsoring India’s resolution in UN along with Bhutan for recognition of Bangladesh.
Cultural diplomacy, as a tool for India to enhance its relations in the Northeast, has become a vital part of its foreign policy and can prove to be fruitful in its relations with Mongolia. Buddhism and a common culture based on democracy have worked as the bridge between the two nations. Former Prime Minister of Mongolia, Chimed Saikhanbileg, called India and Mongolia "spiritual neighbors." The cultural ties of both nations are as old as around 2500 years which started with the spread of Buddhism from India to Mongolia. The spiritual links between India and Mongolia work as an additional thrust for the nations to cooperate for mutual benefit.
If we look at Mongolia’s trade relations across the world, trade with China accounts for more than the half of total external trade of Mongolia. At the same time, Russia is its largest supplier of gas and oil to the landlocked country. As a country that is sandwiched between Russia and China, Mongolia relies heavily on foreign investments. With both the neighbors being the major trade partners and the unfolding geo-economic and geopolitics events, Mongolia is looking for options beyond neighbors. In 2011, it came up with the foreign policy which aims at fostering better relations with third neighbors also known as the "Third Neighbour "policy which aims to diversify its ties and reduce its dependence on its neighbors.
There economic ties have been growing between New Delhi and Ulaanbaatar. Mongolia can serve as a green zone for investment for India and can benefit from the advancements in technology India can offer in its modernizing process. India-Mongolia signed the civil nuclear deal in 2009 for the export of uranium from Mongolia to India. Ulaanbaatar has rich Uranium deposits that could help New Delhi; one of the fastest-growing economies to meet its energy requirements and also with its low-carbon growth. For Mongolia, the increasing demand for its resources has provided it with the opportunity to diversify and enhance its diplomatic position. The country has shown tremendous potential, as it recorded a growth rate of 17.5 percent in 2011. This growth was attributed to the copper and coal mining boom in the country. However, since the energy potential in the country remains largely unexplored, there exists a great opportunity for Mongolia to attract capital in its energy market, and India with its high energy consumption can serve the purpose. Security aspects for both the nations are a cause for major concern, and there exists a potential to even enhance security partnership. Both the nations already conduct annual joint military exercise known as the Nomadic Elephant and a peacekeeping exercise called Khan Quest.
The Indian Prime Minister’s visit to Mongolia in 2015 gave a new impetus to the bilateral relationship, and it was upgraded to a "strategic relationship". At the same time it also gave out a strategic signal in the region that India is ready to expand its horizon in the Chinese neighbourhood. One can argue that Chinese strategic planning, and initiatives like the Belt and Road Initiative to increase its influence in the Indian neighbourhood is a contributing factor for India to try to cultivate relations in the periphery of China. During the visit, India gave a $1 billion Line of Credit for the implementation of an oil refinery in Mongolia. Even though the trade relations have gotten better, trade still holds a lot of potential and has never been explored in a comprehensive manner. The trade turnover increased by 40%, that is, from $30 million in 2017 to $52.6 million in 2018. Though there has been a plunge in 2019 when the figure dropped to $38.3 million. One of the major reasons for low trade can be attributed to the distance that increases the transportation cost, and with Mongolia being a landlocked country, goods are shipped using the ports of Russia and China, resulting in delays. With rising efforts to integrate the region and increasing connectivity, the problem can be reduced in the future. The two nations have also signed an agreement for outer space exploration, which has opened different avenues for both the nations to explore together, for instance, satellite communication, remote sensing, etc. There have been substantial efforts and initiatives being made from both sides in the field of education. The establishment of joint India-Mongolia schools and the Atal Bihari Vajpayee centre of excellence and communication technology are steps in that direction. The Mongolian Prime minister H.E. Mr. Khaltmaagiin Battulga, visited India in 2019. These high-profile visits have led to several initiatives of cooperation among the economies.
China is currently the largest exporter of the Mongolian market but the rising influence of China in the region, Mongolia's overdependence, and complicated history with China has always kept Mongolia suspicious of its neighbour and has forced it to look beyond Russia and China. Under its Third Neighbour Policy, Mongolia has established a "Strategic Relationship with 5 countries. Most recently it signed a strategic partnership agreement with the United States of America making it the 5th country. The other four nations that have Strategic Partnerships with Mongolia are Russia (2006), Japan (2010), China (2014), and India (2015). If we look at these five nations, Japan, India and the United States are also members of Quad. The increasing closeness with Mongolia of 3 out of 4 members of Quad is an indication of a strategic signal to China and integration of Mongolia in the broader strategy of Indo-Pacific. The U.S. Department of Defence’s Indo-Pacific Strategy report included Mongolia as one of the "democracies in Indo-Pacific," that is "reliable, capable, and natural partners of the United States."
With the coming of new and influential players in the realm of “strategic cooperation” of engagement, it would be interesting to observe how Mongolia maintains its traditional relations with China and Russia while engaging with India and other powers. Bilateral relations between India and Mongolia can be vital for the emerging geopolitics in the region. For India, it is crucial for its north-eastern vision. There lies a huge economic potential for both to act towards more comprehensive cooperation based on mutual benefit. Nevertheless, any further progress in the relationship has to be based on mutual respect, planned economic and trade policies while keeping the security and strategy concerns at par with cultural and economic engagements.
Notes
[1] https://www.mea.gov.in/press-releases.htm?dtl/33256/7th_Meeting_of_IndiaMongolia_Joint_Committee_on_Cooperation
[2] https://www.thehindu.com/news/national/india-mongolia-to-explore-space-together/article29471166.ece
[3] https://www.montsame.mn/en/read/202211
[4] https://www.outlookindia.com/newsscroll/india-mongolia-review-developmental-projects-discuss-cooperation-in-combating-covid19/1987094
[5] https://thediplomat.com/2019/08/us-becomes-mongolias-5th-strategic-partner/
[6] https://idsa.in/event/2ndIDSA-ISSBilateralDialogue_SessionI
[7] https://www.livemint.com/Politics/tRoT2rxvgpDFr7XhYqM5XP/Narendra-Modi-arrives-in-Mongolia-on-historic-visit.html
[8] https://www.india-briefing.com/news/developing-strategic-partnership-india-mongolia-13443.html/
[9] https://pib.gov.in/PressReleasePage.aspx?PRID=1536406
[11] http://www.indbiz.gov.in/india-mongolia-expand-bilateral-ties-in-different-sectors/
[12] https://journals.sagepub.com/doi/full/10.1177/0974928414554975
[13] https://www.financialexpress.com/defence/india-mongolia-the-spiritual-neighbours-embark-on-an-enhancing-journey/1715139/
[14] https://www.futuredirections.org.au/publication/india-and-mongolia-uranium-and-beyond/
Pic Courtesy-Victor He at unsplash.com
(The views are personal views of the author.)
